LOG IN APPLY
LOG IN APPLY

PENSION BASICS FOR
THE SELF-EMPLOYED

Prioritising the future

Our recent research shows that 44% of self-employed individuals are not contributing to a pension. This is concerning, as it means a significant number of people are not adequately preparing for their retirement.

Retirement planning can often be put on the backburner, especially for those who are self-employed and focused on growing their business. However, having control over your pension is crucial for long-term financial stability. Without one, self-employed individuals risk not having enough money to support themselves in retirement. This lack of retirement savings can leave self-employed workers vulnerable later in life. As your own boss, it’s easy to focus all your energy on the day-to-day demands of running a business. Long-term planning like retirement savings can take a back seat. However, neglecting to save and invest for retirement early on can make it much harder to accumulate sufficient funds later in your career. Even if retirement seems far off, self-employed workers should prioritise contributing to a pension.

Read our research
Tax relief

One of the most significant advantages is the tax relief that can be gained on contributions made to a pension plan. Self-employed individuals can receive tax relief on contributions of up to £40,000 a year (raising to £60,000 from April 2023), meaning that for every £100 invested, the taxman will contribute an additional £25. This refund can be even higher if you are a higher rate tax payer.

Peace of mind

By investing in a pension, self-employed individuals can ensure they have a reliable income stream during their retirement. Having a pension plan in place is a critical part of long-term financial planning, which can help alleviate financial stress in later life.

Investment flexibility

Self-employed individuals who become a member of iSIPP have a choice of how to invest their pension funds. They can choose from a range of options from world leading investment managers such as BlackRock and Schroders or build their own portfolio. This flexibility allows them to choose investments that align with their risk appetite and long-term goals.

Control

With a pension like iSIPP, you have the control over how much you contribute to your pension and how your money is invested. This gives you the flexibility to tailor your pension to your individual needs and goals.

5 reasons
the self-employed
should be prioritising their pension

Fluctuating income

Irregular earnings indicate the need to focus on your pension as a freelancer. Establishing a stable retirement fund becomes essential to cope with income uncertainties.

No employer contributions

Freelancers miss out on employer-provided pension plans or matching contributions. Taking responsibility for your retirement savings becomes crucial when you lack access to such plans.

Time flies

Time moves quickly, so it’s important to start thinking about your pension early. Starting early maximises the benefits of compounding interest and allows your investments more time to grow.

Limited safety nets

Freelancers lack traditional employment benefits and long-term financial security. To build a safety net for the future, it’s vital to prioritise your pension as a freelancer.

Independence and retirement

Freelancers enjoy independence in their work but must plan for retirement. Without a pension plan, you risk financial difficulties post retirement. Prioritising your pension ensures financial independence and a worry free retirement.

Simple pension management trusted
by our growing partner community

Take control of your
pensions with iSIPP

Join our growing community of self-employed people taking control of their pensions. Consolidate old pension pots, make regular or ad-hoc contributions, and choose your own investments with iSIPP.

GET STARTED

0161 972 2841

iSIPP, 2nd Floor, Marshall House

2 Park Avenue, Sale, United Kingdom, M33 6HE

hello@isipp.co.uk

iSIPP is a trading name of iPensions Group Limited registered in England and Wales with Company Number 03683070 whose office is at 2nd Floor, Marshall House, 2 Park Avenue, Sale, M33 6HE. Authorised and regulated by the Financial Conduct Authority, Licence Number 464521.

©️ 2025 iSIPP. All Rights Reserved.

X

Subscribe to our newsletter