No pensions- self employed

Kellydmitchell

Hi all, I’m looking for some guidance. I am 41 and have no pension 😱I don’t know how I have managed it but I seem to have dodged pensions for my working life and now I don’t understand them. Is it too late to look at taking out a pension and as I am self employed how does that work? Where should I be looking...tbh I am looking for any helpful advice to get started as I am just lost and genuinely have no idea where to start.

Thanks for reading

dunstonh

Is it too late to look at taking out a pension

No.
You have some catching up to to and you will need to pay it more than lip service. However, it certainly is not too late.

as I am self employed how does that work?

Most pensions accept self employed just as they would employed.

Where should I be looking...tbh I am looking for any helpful advice to get started as I am just lost and genuinely have no idea where to start.

Either you get a local IFA to do it all for you or you research the providers and investments yourself and put in the time to learn about investing.

How much were you looking to pay each month?

Kellydmitchell

Thanks for the response, my searching has said I should be paying 20 percent of my monthly salary in, if that’s after tax it amounts to about £450. I have always been told pensions weren’t worth it especially as I don’t get an employer contribution but I’m starting to panic now. So my first port of call is really a financial advisor..?

Marcon

Kellydmitchell wrote: »

I have always been told pensions weren’t worth it especially as I don’t get an employer contribution but I’m starting to panic now. So my first port of call is really a financial advisor..?

Told by whom? That repository of expert knowledge, your mate in the pub? Even if you don't get an employer contribution, you get tax relief (and even if you're a non-taxpayer you get 'tax relief' on 'relief at source' arrangements, such as a personal pension - which is what you'll be looking at).

An IFA is one option but do a bit of basic reading first - e.g. https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics

Kellydmitchell

Thanks for that , you are right of course there is no excuse for not researching. I will certainly have a read through your link. I think I just don’t have a grasp of how it all works and fear of the unknown has kept me from investigating further. Stupid I know but hopefully not too late to rectify. Every time I look it pops my brain into overload and most things I have read relate to workplace pensions. Thanks for taking the time to reply

Clive_Woody

Never too late to start and better to have something in a pension pot than reach your later years and only have the state pension to try and survive on.

I am far from an expert and come on these boards to learn from the folk who know far more than me about pensions. There are some pretty simple options for sorting out a pension, you don't need to study stock markets or start reading the FT. Invest a bit of time now sorting it out and then you can pretty much leave it alone and watch it grow.

You don't necessarily need an IFA to sort out a pension for you (but depends on your circumstances and how much time you've got to figure out things on your own). At the very least do some research before talking to an IFA so you at least have a clue what they are talking about.

xylophone

https://www.cavendishonline.co.uk/pensions?gclid=EAIaIQobChMIo5rCzOeB4AIVzZPtCh0FIAAyEAAYASAAEgKyE_D_BwE

https://monevator.com/low-cost-index-trackers/

Above might be worth a look.

Read

DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning
by John Edwards.

https://www.aviva.co.uk/retirement/shape-my-future/plan-my-future/article/self-employed-your-pension-questions-answered/

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

moneysaverz83

Usually you need to put in 10%of gross salary every month, as a rule, but that's in your 20s when you start earning roughly. At 41, I think you'll need 20 to 30‰😱! You have already missed out on many years tax relief. Get moving :T!



Tell us about yourself. Are you single or married or civil partnerships? Kids? Mortgage or rent? Any debts? Any savings? :eek:

louloubelle79

My husband also self-employed only set up a pension last year age 39 🤷🏻!♀️ We used

https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

Kellydmitchell

Thanks so much for these responses , loads of interesting reading there. I had no idea you could take out a sipp and just chop and change your own investments...a minefield and deffo requires more reading..the aviva link was interesting,

Kellydmitchell

Hi I’m married , no kids. I have 10k in an isa , I also have 15k in my business account but I’m not sure if I can lift that out to put in a pension say as a lump sum if that’s beneficial, the isa is a garbage rate and a mortagage of 100k with equity of about £105k in the house. I don’t have any debt other than the car payment. My gross profit is about 30k a year after expenses. I sadly have just been living day to day instead of thinking of the future but I know I need to get a handle on it. ....I thought I would need to put in 20 percent a month, I’m not sure I can do 30 but I will look at my figures ��