Pension Planning for the Self-Employed

As a self-employed individual, securing your financial future is paramount. One of the most effective ways to do this is through pension planning. While self-employed individuals don’t have access to workplace pensions, they can still take advantage of a variety of pension options. 

So what are your options?

Self-Invested Personal Pension (SIPP):

1. • Flexibility: Offers flexibility in choosing investments, from stocks and shares to property.
   • Tax Relief: You can claim tax relief on contributions, reducing your taxable income.
   • Potential High Returns: Investing in a diverse range of assets can lead to significant long-term growth.

Personal Pension:

1. • Simplicity: A straightforward option with a wider range of investment choices.
   • Tax Relief: Similar to SIPPs, you can claim tax relief on contributions.
   • Lower Fees: Often lower fees compared to SIPPs.

Small Self-Administered Scheme (SSAS):

1. • Control: Provides greater control over investments and pension fund management.
   • Flexibility: Allows for more complex investment strategies, such as commercial property or venture capital.
   • Higher Costs: Can be more expensive to set up and manage than other pension options.

Whatever your choice, consistent contributions are crucial to build a substantial pension pot and you can maximise tax relief by making regular contributions within annual limits. And be aware of the Lifetime Allowance, which limits the total amount you can save in pension pots.

You can choose your level of risk, but spreading your investments across various asset classes can reduce that risk.

But come and chat to us about all the complications – there’s issues of tax, flexiblke access and drawdown to consider and your pension planning should be part of your wider financial strategy. We can plot a comfortable future for you.