People often view the lack of an employer pension as a major downside of being self-employed and, although it is a disadvantage to not have an employer paying into your pension scheme, it does mean you can choose your own pension to suit your specific needs and preferences. There are tax benefits to having a personal pension too and we can help self-employed people to choose the type of pension which will work well for their circumstances and the level of risk they would like to take on.
Self-employed people can choose from the three types of personal pensions – ordinary personal pensions, stakeholder pensions or self-invested personal pensions (SIPPs) – according to their requirements and preferences. Each comes with varying levels of flexibility and higher or lower fees. All have tax benefits as you receive tax relief on money you pay into any of these pensions but which one you choose will depend on how you want to contribute to it, how often and how much control you would like over what the money is invested in. Our team will talk you through all these options to help you decide which type of pension would be most appropriate for you.
Once we have helped you choose a pension type, we can help you choose which particular pension you would like as there is still a huge range of choice even when you have established the type you would like. We can look at a wide range of pensions suitable for self-employed people to find the one which will serve your needs and preferences. If you already have a personal pension, or a previous employer pension you aren’t paying into anymore, we can help you manage these to make the most out of them and make any changes we feel would benefit you when you come to draw your pension.
Risk Warning: A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.