What if you’re self-employed? How to make the most of your private pension

It can be slightly harder for selfemployed people to organise their finances as they miss out on the boost offered by auto-enrolment. Analysis from the online financial community Boring Money revealed that 34 per cent of self-employed people have no pension at all.

Therefore, it is important that they do not ignore saving for retirement and instead begin planning as soon as possible. You can do this by setting up a selfemployed pension.

You will get a generous

25 per cent tax top up from the Government on pension contributions. So if you pay in £100, the Government effectively adds £25 to your pension. Megan Rimmer (right), a chartered financial planner at Quilter Cheviot, said: “As the selfemployed lose out on the generous top-ups from employers, saving as much as they can towards their pension will help ensure they are financially stable in later life.

“If you own a limited company, you may be able to make employer contributions into a pension and these are normally a deductible expense for corporation tax. Any contribution must meet the

“wholly and exclusively” rules so it’s important to receive professional financial advice on this.”

It may be wise to seek professional financial help to determine how much you will need to save to support your retirement goals, considering the potential lack of employer contributions, and to implement a financial plan to help you get there.