Pensions for self-employed individuals

Read on and understand how to go about saving for your pension if you’re self-employed.

09:38 09 June 2013

Self-employed individuals may find it a bit difficult to save into a pension. Unlike those who are working for firms, these people do not enjoy employment contributions. Plus they need to go about the process practically all by themselves.

 

 

Just like everybody else, self-employed individuals are entitled to the basic State Pension. You’ll be able to get this amount only if you have contributed to National Insurance for at least 30 years. Although you may need to save more; the amount you wish to retire with differs from person to person.

 

Start saving as soon as possible

 

Believe me, it’s never too early to save into apension, as this will help you ensure that you’ll have comfortable years when you decide to stop working. If you start saving at the age of 20 to 25, you can help build your retirement fund. 

 

As for the pension scheme, you have several options. These include stakeholder pension, SIPPSs or Self-Invested Personal Pensions, etc. Keep in mind that different scheme has pros and cons. It is very important that you understand these before you start saving so you can avoid unpleasant surprises.