Pension advice for freelancer

Casall

A few years ago I moved from permanent employment to being a freelancer. The way things are going at the moment I prefer being independent, so I need to start saving for pension again.

From my time being a permanent employee I have the following pension plans.

Plan A £4,800
Plan B £42,000
Plan C £45,000

To Plan C I cannot add any new funds and I have to leave it as it is, or so I have been told.
Plan B I could convert to a personal pension plan and then start adding funds.
Plan A I could potentially consolidate with Plan B.

Any thoughts on which of the following options I should go for:

1. Convert Plan B to a personal pension and start paying into it
2. Consolidate Plan A and Plan B and start paying into the consolidated plan
3. Start a new pension plan
4. Something else?

Also, does anyone know a website which can be used to calculate how much it is necessary to save each month in order to have X amount annual pension
E.g. If current pension pot is £££, person is X years old and wants to retire at the age of Y with an annual pension of ££££, approx. how much should be paid each month into the pension plan.

dunstonh

Any thoughts on which of the following options I should go for:

1. Convert Plan B to a personal pension and start paying into it
2. Consolidate Plan A and Plan B and start paying into the consolidated plan
3. Start a new pension plan
4. Something else?

We know none of the facts of the existing plans. So, its impossible for anyone to comment (and no-one can advise as that is a regulated activity and the board is not authorised to do that).

As it stands, 1, 2 or 3 could all be possible options.

To decide, you need to do an analysis of the existing plans and compare them to modern plans and how you want to invest and work out which is best from there.

xylophone

Plan C is a deferred DB pension? A S32 policy? A Group Pension Plan?

Have you considered consulting an IFA?

https://www.unbiased.co.uk/

Casall

Thanks for your replies.

Both Plan B and C are group pension plans; I think Plan C is also a deferred plan.

Yes, I have been looking for consulting an IFA, also checked unbiased.co.uk, but have not contacted anyone yet.

As dunstonh said the existing plans need to be analysed in order to know what is the best way forward, so I think I will need to get some advice from an IFA here.

zagfles

The MAS website has a calculator:

https://www.moneyadviceservice.org.uk/en/categories/pensions-and-retirement

greenglide

I assume you are trading through your own limited company?

If so the company can pay into a pension scheme set up by you with no NI or income tax payable by you and reduces the value of profits by the amount of the payment which reduces the corporation tax payable.