Self-Employed Pension

bethanybrown97

Hello Everyone, 

My partner is 28 and has never had a pension as he has been self employed all of his life. Could somebody please advise me on which scheme/company would be best to use to get started?

Thank you

Marcon

bethanybrown97 said:

Hello Everyone, 

My partner is 28 and has never had a pension as he has been self employed all of his life. Could somebody please advise me on which scheme/company would be best to use to get started?

Thank you

Have a look at https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics and scroll down to the section headed 'pensions for the self employed'.

Stakeholder pensions are much maligned on this board as being out of date, but actually they're not a bad choice for a novice. He can set one up direct with Aviva (no need to pay an adviser). See https://static.aviva.io/content/dam/document-library/adviser/pensions/sp01001c.pdf

There are no exit fees with a stakeholder, so he can always transfer to something more sophisticated/flexible at a time of his choice.

The important bit is getting on and actually setting up a pension and paying into it!

Albermarle

There is no special self employed type of pension, so he can start a pension with any provider that offers pensions to the retail market ( some only work with advisors) It takes a matter of minutes on line.
He will get basic rate tax relief added to any contributions.
One point to note is that he will have to pick an investment fund within the pension. To make this easier some just offer a very small range that is better for inexperienced investors.
Pensions: Everything you need to know for retirement - MSE (moneysavingexpert.com)
Find the best & cheapest SIPP - Money To The Masses

xylophone

He has a wide choice of providers.

https://moneytothemasses.com/saving-for-your-future/pensions/best-pension-in-the-uk

 As a beginner and If he wants a basic option, he could choose a simple stakeholder, still available through Aviva and Standard Life.

Or he could choose a personal pension through them or other insurers , for example Legal and General.

Or he might like to look at the Vanguard pension and choose one of their Target Retirement Portfolios.

If he wants advice specific to his situation, he could try

https://adviserbook.co.uk/

He would tick "confirmed independent" and other options required when the menu comes up.

He could then ring round and check on fees etc.

Albermarle

 As a beginner and If he wants a basic option, he could choose a simple stakeholder, still available through Aviva and Standard Life.

Standard Life offer a personal pension, that is probably more up to date than a stakeholder. It has a ready made ' help me do it' option for new/inexperienced investors, so could also be an option.

.Personal Pension | Private Pension Plan | Standard Life

Beddie

bethanybrown97 said:

Hello Everyone, 

My partner is 28 and has never had a pension as he has been self employed all of his life. Could somebody please advise me on which scheme/company would be best to use to get started?

Thank you

The company you use is not hugely important at this early stage. The important thing is to actually get started.

You could try PensionBee or Nutmeg, as they are good for beginners and they try to guide you as to the best place to invest. As for how much to pay in, would 10% of his income be affordable to him? That would be a good start.

You can always change providers in future and change the amounts paid in, but get started as soon as possible. Good luck!