Saving for retirement when you're self-employed

Phil owns a panel-beating shop and employs two staff. As a self-employed person, he knows that he has to look after his retirement plans himself. Phil knows that he has to plan both the business and his own personal finances.

Each week, Phil takes $800 a week out of the business for his living expenses. Phil does a personal budget which shows that he can afford to save 10% of that or $80 a week. He sets up an automatic payment so that this amount is transferred into a super scheme. This is his retirement savings which he keeps completely separate from his business.