If you are an employee then you will automatically be enrolled into a workplace pension which has been set up by your employer.
But if you are self employed you are left pretty much on your own when it comes to starting a pension.
If you already have a very successful business and can afford to contribute a substantial lump sum into a pension fund then you should be speaking to an independent financial adviser. You will almost certainly need ongoing financial advice on pensions, investments and protection.
But what if you have just become self employed or your business is not as yet doing much more than providing your day to day living expenses? You can perhaps set aside £100 a month or more into a pension. However it is just not cost effective for a professional independent financial adviser to take you on as a client.
This is where so many self employed people find themselves. They will hopefully get to the point of needing an independent financial adviser at some stage. In the meantime they don’t want to waste the precious early years of contributing to a pension. As a result of the benefits of compounding returns those early years are worth their weight in gold.
What you need now is a simple, low cost pension plan from a large trusted provider where you don’t have to pick your own funds as you have no investment experience to enable you to do this.
The following are my top five picks for simple low cost pension plans for the self employed or others who do not have access to a workplace pension scheme.
If you would like to investigate a further range of pension providers then you should visit Boring Money
This information does not constitute personal advice and should not be treated as a substitute for specific advice based on your circumstances.
Information given relating to tax legislation is based on my understanding of legislation and practice currently in force. Whilst I believe my interpretation of current law and practice to be correct in these areas, I cannot be responsible for the effects of any future legislation or any change in interpretation or treatment. In particular you are warned that levels of tax and tax reliefs are subject to alteration and, in any case, the value of such reliefs and benefits may depend on an individual’s circumstances.
If you are in any doubt as to whether any course of action is suitable for you, then you should discuss the matter with a suitably qualified independent financial adviser or other specialist.