Self employed pension options

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MoneysavingmadGem
MoneysavingmadGem Posts: 219 Forumite
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in Pensions, annuities & retirement planning
Hi

Recently became self employed so no longer have an employment pension. Im 31 and so looking to see what my pension options are?

I have no lump sum to put down.

Thanks in advance
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  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    Stakeholder pension is quick and easy to set up with low charges. You can always move it to a SIPP when you get nearer to actually accessing your retirement benefits.

    Lots of useful info at https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics
  • BLB53
    BLB53 Posts: 1,583 Forumite
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    If you think you may be s/e for some time then look into setting up your own diy pension plan called a SIPP. It does not need to be complicated, just select a low cost SIPP provider such as AJ Bell Youinvest or HL for example and then set up your monthly DD and invest in a low cost multi-asset fund such as Vanguard Lifestrategy or Target Retirement.

    If you think this may be a possibility to go diy then maybe get hold of the book 'DIY Pensions' by Edwards and work through the various steps involved.

    If you think DIY may not be an option for you then consider a pension with one of the Robo Advisors such as Moneyfarm or Nutmeg for example.

    Good luck but I think it will be important to do something rather than nothing.
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    And to complete the collection, you could also have a personal pension which is the middle ground between stakeholder and SIPPs.
    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.
  • MoneysavingmadGem
    MoneysavingmadGem Posts: 219 Forumite
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    Thank you all for your responses and for links/ suggestions to further reading
  • xylophone
    xylophone Posts: 44,427 Forumite
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    https://www.moneyadviceservice.org.uk/en/articles/pensions-for-the-self-employed

    https://www.cavendishonline.co.uk/pensions/

    http://www.hl.co.uk/pensions/sipp

    http://monevator.com/using-vanguard-lifestrategy-funds-life/

    http://monevator.com/category/investing/passive-investing-investing/
  • RedMonty
    RedMonty Posts: 123 Forumite
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    Just contributing to say that I am in a similar situation. Thanks for the links and advice given.

    FYI I am self-employed without a pension, low earner due to family responsibilities, early 40s, have a lump sum to put into pension. If there's any more specific advice for my situation, let me know please.
  • xylophone
    xylophone Posts: 44,427 Forumite
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    low earner due to family responsibilities

    Does your employer offer a pension?
  • RedMonty
    RedMonty Posts: 123 Forumite
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    xylophone wrote: »
    Does your employer offer a pension?

    Self employed via a limited company, no pension. Have decided to set up a SIPP after reading the links above. Just looking at whether to pay it myself or through my company.

    Issues are a desire to minimise paperwork / keep tax affairs simple, versus paying less tax / saving an extra 13.8% on NIC.
  • deejaybee
    deejaybee Posts: 885 Forumite
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    I am in a similar quandary as OP..

    Been S/E since 2010 and have not contributed to a pension since then ( apart from paying NIC of course )

    Big difference is i am 58 next birthday... :(

    I have been receiving a small final salary pension ( 2k ish per year ) since age 55, which i am saving to build a rainy day fund.

    And have another deferred final salary pension which i guestimate will be worth around 5K a year at age 65.

    I dont want to hijack this thread, and will crack on with looking at the links kindly provided :T and maybe start a thread of my own soon.
  • Dox
    Dox Posts: 3,116 Forumite
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    RedMonty wrote: »
    Self employed via a limited company, no pension. Have decided to set up a SIPP after reading the links above. Just looking at whether to pay it myself or through my company.

    Issues are a desire to minimise paperwork / keep tax affairs simple, versus paying less tax / saving an extra 13.8% on NIC.

    Pay it through the company. Every bit as simple as paying yourself a salary from the company and then making a personal contribution (and as you point out, there's an NI saving if the company pays).
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