Self-employment isn't always beer and skittles.

It often means working long hours, possibly with low pay until the business is established.

The drawcard that makes working for ourselves so appealing, is flexible working hours coupled with the chance to earn a decent living if the venture goes well.

What many self-employed workers overlook however is that without the benefit of employer-paid super contributions, they run the risk of a very lean retirement.

According to a recent report entitled 'The Self-employed and Saving for Retirement' from the Association of Superannuation Funds of Australia (ASFA), 28% of self-employed workers have little or nothing tucked away in super. A further 53% have less than $40,000 in super savings.

Moreover, only about one in four of small business owners make regular super contributions for themselves.

So it's no surprise to learn that the average annual income among recently retired self-employed people is a meagre $24,500.

It's hardly a decent reward for the years of effort involved in building and running a small enterprise.

Part of the problem is that many business operators rely on the future sale of their venture to partially fund retirement.

It's a strategy that can be fraught with peril - particularly if the ongoing involvement of the owner is essential to the success of the venture.

Without the owner, the business may be worth little more than the value of your equipment. And in many cases that's not much.

The bottom line is that it is essential for anyone running their own show to make plans to boost their super.

In the past, there have been lean limits placed on the tax deduction self-employed workers could claim for personal super contributions.

But last year's changes to our super regime provide far more of an incentive for small entrepreneurs to build a super nest egg.

Under present rules, if you're self-employed you can claim annual super contributions worth up to $50,000 against your tax.

If you're aged over fifty, this deduction rises to $120,000 each year until 2012.

In addition to saving on tax, super contributions also let you build a better retirement for yourself.

For more information, speak to your financial planner or accountant or log onto the Tax Office website at www.ato.gov.au, where you'll find answers to commonly asked questions on super, plus plenty of free booklets you can download.