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  • FIRST POST
    • MoneysavingmadGem
    • By MoneysavingmadGem 4th May 18, 10:57 PM
    • 55Posts
    • 251Thanks
    MoneysavingmadGem
    Self employed pension options
    • #1
    • 4th May 18, 10:57 PM
    Self employed pension options 4th May 18 at 10:57 PM
    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
    Crazy clothes 2018 #7 - 24.23/ 120, handmade or cs
    Pay all debt off xmas 2018 #066.(909.95/ 10565.90)
    2018 frugal living #34 (2500)
    1% a day #36 (9000)
Page 1
    • Brynsam
    • By Brynsam 4th May 18, 11:02 PM
    • 1,268 Posts
    • 869 Thanks
    Brynsam
    • #2
    • 4th May 18, 11:02 PM
    • #2
    • 4th May 18, 11:02 PM
    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
    • By BLB53 4th May 18, 11:32 PM
    • 1,319 Posts
    • 1,096 Thanks
    BLB53
    • #3
    • 4th May 18, 11:32 PM
    • #3
    • 4th May 18, 11:32 PM
    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.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • dunstonh
    • By dunstonh 5th May 18, 1:52 AM
    • 93,365 Posts
    • 60,868 Thanks
    dunstonh
    • #4
    • 5th May 18, 1:52 AM
    • #4
    • 5th May 18, 1:52 AM
    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). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • MoneysavingmadGem
    • By MoneysavingmadGem 5th May 18, 7:45 AM
    • 55 Posts
    • 251 Thanks
    MoneysavingmadGem
    • #5
    • 5th May 18, 7:45 AM
    • #5
    • 5th May 18, 7:45 AM
    Thank you all for your responses and for links/ suggestions to further reading
    Crazy clothes 2018 #7 - 24.23/ 120, handmade or cs
    Pay all debt off xmas 2018 #066.(909.95/ 10565.90)
    2018 frugal living #34 (2500)
    1% a day #36 (9000)
    • xylophone
    • By xylophone 5th May 18, 10:19 AM
    • 25,745 Posts
    • 15,214 Thanks
    xylophone
    • #6
    • 5th May 18, 10:19 AM
    • #6
    • 5th May 18, 10:19 AM
    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
    • By RedMonty 8th May 18, 2:44 PM
    • 70 Posts
    • 18 Thanks
    RedMonty
    • #7
    • 8th May 18, 2:44 PM
    • #7
    • 8th May 18, 2:44 PM
    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
    • By xylophone 8th May 18, 3:45 PM
    • 25,745 Posts
    • 15,214 Thanks
    xylophone
    • #8
    • 8th May 18, 3:45 PM
    • #8
    • 8th May 18, 3:45 PM
    low earner due to family responsibilities
    Does your employer offer a pension?
    • RedMonty
    • By RedMonty 8th May 18, 5:19 PM
    • 70 Posts
    • 18 Thanks
    RedMonty
    • #9
    • 8th May 18, 5:19 PM
    • #9
    • 8th May 18, 5:19 PM
    Does your employer offer a pension?
    Originally posted by xylophone
    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
    • By deejaybee 13th May 18, 7:50 PM
    • 416 Posts
    • 94 Thanks
    deejaybee
    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 and maybe start a thread of my own soon.
    • Dox
    • By Dox 13th May 18, 8:23 PM
    • 735 Posts
    • 502 Thanks
    Dox
    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.
    Originally posted by RedMonty
    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).
    • xylophone
    • By xylophone 13th May 18, 8:33 PM
    • 25,745 Posts
    • 15,214 Thanks
    xylophone
    Big difference is i am 58 next birthday.
    Have you checked your state pension statement?

    https://www.gov.uk/check-state-pension
    • deejaybee
    • By deejaybee 13th May 18, 8:51 PM
    • 416 Posts
    • 94 Thanks
    deejaybee
    Have you checked your state pension statement?

    https://www.gov.uk/check-state-pension
    Originally posted by xylophone
    Hi,

    Yes, i am on track to receive full state pension.
    • andy001
    • By andy001 13th May 18, 9:34 PM
    • 42 Posts
    • 17 Thanks
    andy001
    Great advice
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