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Module 2 of 6
Self-Employed Pension Options
Understanding SIPPs, stakeholder pensions, and workplace options if you employ people.
20 min read
Self-Employed Pension Options
As a self-employed woman, building a pension is entirely your responsibility - there's no employer contributions. This module covers your options.
Why Pensions Matter More for Self-Employed
Without an employer pension:
- You miss out on employer contributions (free money!)
- You need to be more disciplined about saving
- You might work longer before you can afford to retire
Your Pension Options
Personal Pension
- Simple to set up
- Wide range of providers
- Flexible contributions
- Tax relief on contributions
SIPP (Self-Invested Personal Pension)
- More investment choice
- Lower ongoing costs for larger pots
- More complex to manage
- Best for those comfortable with investing
Stakeholder Pension
- Capped charges (1%)
- Low minimum contributions
- Limited investment options
Tax Relief Explained
The government adds 20% to your pension contributions automatically. Higher rate taxpayers can claim more through self-assessment.
Example: Pay in GBP80, government adds GBP20, your pension receives GBP100.
Tip: You can contribute up to GBP60,000 per year (or your total earnings if less) and receive tax relief.
How Much Should You Save?
A rough guide is to save half your age as a percentage when you start:
- Start at 30? Save 15%
- Start at 40? Save 20%
Getting Started
- Check your State Pension forecast
- Research providers and costs
- Start with whatever you can afford
- Increase contributions as your business grows