Pension schemes for the self-employed

(19 Posts)
Jokat Sun 20-Nov-16 11:22:16

Hi there,
I work as a tutor with special needs children on a 1-2-1 basis, both in home and in school settings. I have asked around amongst colleagues and my consultants, but no one knows of a pension scheme, people just save up and stick it into an account. I have looked online but can only find schemes for employed people. Does anyone know of a provider for self employed people?

VeganCow Mon 21-Nov-16 09:34:12

Good question wondered this myself. This topic seems so quiet, could you post this in chat? It seems there are more than average self employed people on mumsnet, so should be answered over in chat.

Jokat Mon 21-Nov-16 12:48:14

Hi VeganCow, I have done already and there were a few helpful responses. I don't know how to link, but if you search in chat for this title:

Self-employed in need of pension scheme

you'll find it.

DoubleCarrick Mon 21-Nov-16 12:50:16

We have the same job, op smile

Both dh and I are self employed. Personally, we are overpaying on our mortgage and treating that as our pension contributions. Can't think of any way around it.

walde Mon 21-Nov-16 13:14:37

I am self employed and have a personal pension which I set up through a financial advisor. The government put in £20 for every £80 you put in.

atticusclaw2 Mon 21-Nov-16 13:17:06

I'm confused. You just need a personal pension.

GrumpyOldBag Mon 21-Nov-16 19:29:14

what atticus said.

I'm self-employed and have been paying into a personal pension for years. Loads of choice available.

I'm pretty sure I don't get £20 from the government - but I get tax relief (as everyone does).

GrumpyOldBag Mon 21-Nov-16 19:30:48

www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/contract-based-schemes/personal-pensions

"You can have a personal pension if you're employed, self-employed or not working."

Flanderspigeonmurderer Mon 21-Nov-16 19:32:27

I set something up with nest. It might look as though it's for employees only but you can use it if you're self employed.

walde Mon 21-Nov-16 19:58:53

GrumpyOldBag - Yes that's what I meant. Got a bit confused there!

Jokat Mon 21-Nov-16 23:24:22

Thanks everyone. I shall look into it, there is obviously a lot more choice than I first thought. I'm glad I asked!

DoubleCarrick I am mystified why no one else in our field that I've come across seems to go with or know about a personal pension!

DoubleCarrick Tue 22-Nov-16 08:48:07

I think I'm just a cynic when it comes to personal pensions, rightly or wrongly. And tbh I don't really earn enough to bother with it. The lack of employer contributions puts me off and the fact that I've chosen to earn 12k a year rather than have a teacher salary. My view is that paying down debt/mortgage needs to be my priority and I just have to hope it all goes according to plan!

GrumpyOldBag Tue 22-Nov-16 09:20:33

The main advantage of paying into a pension is that it's tax free. Obviously that's more of a benefit if you are in a higher tax bracket. And now you can have access to all the cash at 55 it can also be used to pay off your mortgage if you haven't cleared it by now.

Disclaimer: not an expert.

DoubleCarrick Tue 22-Nov-16 09:26:47

I think that's the thing, for me, I don't earn enough to pay more than about £200 tax per year. And with baby on the way that might drop for a short while

PortiaCastis Tue 22-Nov-16 09:28:10

Don't forget that you'll pay tax on any pension when you cash it in.

www.gov.uk/tax-on-pension/taxed

ajandjjmum Tue 22-Nov-16 09:39:26

25% of it is available tax free Portia - and then you need only draw it as you need it, so if you draw under the taxable threshold, there is no tax to pay.

PortiaCastis Tue 22-Nov-16 09:43:09

Yes but if state pension is stil around that is included in your tax allowance.
My Gran is paying a lot of tax on her military pension

atticusclaw2 Tue 22-Nov-16 09:46:51

You need to have a pretty decent pension to be paying more tax on it when it comes out than when it goes in. The idea is that you are in a lower tax bracket in retirement and so it is still tax efficient (plus clearly the lump sum is tax free as pp has said).

Jokat Fri 25-Nov-16 12:42:46

I only made about 12000 in the past tax year. It will be bit more by the end of this one, but even then it won't be much tax. So, spending £250 on an ifa would be a bit painful...

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