Self-Employed Personal Pensions

If you are self employed, obviously it is up to you to plan financially for your retirement.

With no company pension scheme and only the basic state pension (you will not be entitled the additional state pension scheme) it is a good idea to think about taking out a pension scheme.

If you are self employed, provided aged between 18 and 75, you are eligible to pay into a personal pension plan. The flexibility of a personal pension is often ideally suited to the self employed as earnings are not always as regular and consistent as those of a company employee.

You are entitled to the same tax relief on your personal pension premiums as employees however tax relief may have to be claimed it back at the end of the tax year through your tax return.

Some pensions for self-employed people may also offer sickness protection built into a pension, which may worth be considering (the cost is usually around 5 percent extra of the total premium).