Over one million individuals have entered self-employment since 20201, so it is important to ensure you are still planning for retirement by making regular pension contributions.
A growing sector
In 2023, there were 4.2 million people in the UK’s solo self-employed sector – 3% higher than the previous year. Overall, the solo self-employed contributed £331bn to the UK economy, up from £278bn in 2022. But, concerningly, 45% of freelancers are not saving into a pension2.
Make it a priority
We know it can be easy to forget about your pension, seeing as employed people are auto-enrolled into a pension scheme by their workplace, but if you are freelance it is your responsibility.
The sooner you start saving for retirement, the more you can grow your investment and benefit from tax relief on contributions (within limits). Putting it off only means that you will need to save more in a shorter amount of time if you want a comfortable retirement.
Contribute regularly
Decide on a minimum monthly contribution that feels manageable for you. Your income may fluctuate from month to month – that’s why you can put more money into your pot when you’re doing well.
Seek advice
One benefit of being self-employed is that you have more freedom when it comes to choosing your pension. We can help you plan ahead.
1IPSE, 2024
2IPSE, 2023
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
