Self employed pension
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bow74
Posts: 58 Forumite
I am about to take the plunge as start out self employed. I have a private pension with Aviva which I haven't contributed to for about 10 years. My current employer signed me up to the goverment scheme 2 years ago. My question is which would be the better to carry on contributing too , once I start working for myself.
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Comments
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My current employer signed me up to the goverment scheme 2 years ago.
There are only two Govt pensions. The state pension and public sector pensions.My question is which would be the better to carry on contributing too , once I start working for myself.
If you are giving up employment then you will not be able to contribute to a public sector pension and the state pension is not contributory.
A 10 year old pension is probably out of date by modern standards. So, a modern option is likely to be better (but not necessarily).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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p00hsticks wrote: »Perhaps the OP is referring to a workplace pension ?
Many people seem to view these as a government initiative
It is a Govt initiative but it is not a Govt pension. But you are probably right.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Bow74; what will you employment status be: sole trader or limited Co. The difference has a major impact on your pension contribution options.
Rob0 -
All
1,yes sorry its the workplace pension.
2, i was looking at becoming a limited company
sorry new to all this.
judging by the comments i cannot contribute to the workplace pension, so as a limited company can start contributing to the Aviva one after i speak to them and see if there is a better on on offer ?
Cheers0 -
1,yes sorry its the workplace pension.
2, i was looking at becoming a limited company
That also means you wont be self employed. This also changes how you should pay into it (employer contributions instead of employee)can start contributing to the Aviva one after i speak to them and see if there is a better on on offer ?
there will be better given the year you mention you took it out.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
One option might be to explore opening a new pension plan, transferring in the old Aviva Plan and the workplace pension and then having your limited company continue to make contributions for you into the new plan.
http://www.hl.co.uk/pensions/sipp/how-much-can-i-invest/employer-contributions
http://monevator.com/compare-uk-cheapest-online-brokers/
http://monevator.com/using-vanguard-lifestrategy-funds-life/
A discussion with an IFA could help.
https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser0 -
I am about to take the plunge as start out self employed.
I've been 'self employed' for about 10 years and have been trading through my own limited company (typical model where both my wife and I are Directors with 90/10 share holding). During this period my wife and I have had a SIPP with Hargreaves Lansdown. Although I am able to make 'personal' contributions to my SIPP, I would have to make these personal contributions from any income I received from my company. As this is would be income received after tax I haven't done this. I have however, made regular 'employer' contributions direct from the company account into my SIPP.
With regards to contributing to your existing Aviva pension. I'm not sure whether you can make your contributions into your existing pension 'pot' or whether you will have to open up a separate SIPP. If it's the latter, then I guess you can still contribute into the same funds as your existing pension so the effect would be marginal.
Personally, I'd go for the non-Aviva SIPP route (with HL or similar) as the choice of investment funds is far greater that going to someone like Aviva. It depends on how comfortable you are in managing your own investments.0
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