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Pensions for the Self-Employed

We all know how important it is to plan for retirement and since the introduction of automatic enrolment a vast number of people in employment are saving through the many schemes available.

With calls to raise the age of retirement significantly over the next 15 years, forward planning and saving through a pension seems more important than ever.

In 2018 the Government’s Pensions Regulator indicated that 76% of UK staff were successfully enrolled in a workplace pension scheme.

Full and part-time workers are taking advantage of this but it can be less straightforward for the self-employed.

Paying into a private pension without the luxury of a regular salary can be a real challenge, particularly if you’re operating your own limited company, and withdrawing funds by means of dividends rather than salary.

If you run a limited company there’s effectively two ways in which you can contribute to your pension. You can make personal contributions using the money you take out of the business, or you can contribute pre-taxed company income through the business itself. There are advantages and disadvantages to both options.

If you would like to discuss your pension options as a self employed person call CWR on 01524 67371. We look forward to hearing from you.

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