- Jun 10, 2017
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*sigh*Depends on your country? In my country, your benefits do not change. You can make an unemployment insurance. Besides that, you can never drop to 0 thanks to social welfare anyway. When it comes to retirement, you need to pay pension insurance as indie dev anyway, [...]
I never said that you loose your rights to, or your access to, those benefits, just that they don't anymore come automatically, being deducted for you from your gross salary.
And if I explicitly excluded the US, it's precisely because the notion of "gross salary" is mostly irrelevant there. There's job that come with benefits but, globally, paying for their health and unemployment insurance, and contributing to their retirement fund, is something that is natural for them. While it's absolutely not instinctive outside of the USA.
And it happen that, when they think about quitting their job for a freelancer(-like) life, most people do not think about all this; they make their decision by comparing what they expect to earn to their net salary, not to their gross one. Then, surprise, since those benefits generally cost more when you're freelancer(-like), they end with less than half what they expected. Then come the taxes, here again generally higher since you're now a company all by yourself, and at the end of the year it's almost like they earned nothing, this while earning as much as when they had a salary.
*sigh*Where does this come from? Why would one, if being a full time dev only work for 5 to 10 years at max?
It happen that the life span of a career as indie adult game developer is usually between 5 to 10 years. This doesn't mean that there isn't who quit sooner, nor that there isn't who continue longer. It's just the average one have to expect when considering this career.
Well, between the social benefits cost and the taxes, you'll already spend between 30% of your earning; percent that obviously vary depending on your country and how much you earn (don't know why, but I suddenly feel the need to state the obvious).5 times more? Where does this crazy number come from? I don't see why it would be necessary.
So, assuming that you were earning 2,000 and now earn 10,000, it leave you with 7,000. Once you lived with the 2,000 that was your previous salary, this leave you with 5,000 for your annuity fund.
If you're smart, you'll find one with a 5%/year return, therefore 250, what is 1,04% of your annual salary. Therefore, to continue to earn, through this annuity fund, the equivalent of your salary once you retire from your freelancer-(like) job, you need 97 months of 5,000 deposits to your annuity fund, and therefore to do it for 8 years and 1 month. Yet, being retired from the career doesn't mean that you've reached the age of retirement. Therefore you'll then still have to pay for your social benefits, hence the two years more (assuming that you'll top the average lasting for such career), in order for your annuity fund to be able to cover them. What will save you from being short due to the extended cost being the fact that you injected back to your annuity fund what you earned from it during your career.
[source: I've been freelancer for a bit less than 10 years]