PENSIONS WHEN SELF EMPLOYED

[Blondeshavemorefun]

I'm se. Have been for maybe 14yrs

I started a pension when I was 18 due to my dad but put in £20 a month.

I've done this for 30yrs - I wish I had upped my monthly payment but didn't

Hindsight etx

As I'm se I don't have employers adding % to my pension

I'm not sure what the best company is to either move my pension or leave where it's been for past 30yrs doing not a lot

I am going to start paying extra in when I work more /maybe win on pb etx - my dad said any amount extra in is a bonus

So checked and I can pay in ad hoc so that's good

So my question is

How do you choose where your pension goes - which company is best

Thanks

Nest is the scheme set up by the government which you can join, so fees are low.

Our accountant recommended a financial advisor to us. We hadn't been paying into a pension for years due to being self-employed and unable to afford it - financial advisor manages it all for a small %.

We're with Scottish Widows.

I've been self employed for the last year so I wanted to make sure I was still putting money into a pension. My DH gets discounted financial advice through his work so we did a review together as well as writing wills.

They set a new pension up for me and added in existing ones I had from other employers. I have just added a lump sum before the financial year ended and have set up to pay a basic monthly amount with the hope to top up at the end of the year again if I can. I have an app I can see it in and since the end of last year it's increased by 5% which I'm happy with. Mine is in low risk funds as apparently that matched my views in the attitude to risk questionnaires we completed.

My DC was self employed and paid £50 per month for 30 odd years, thinking this would give him a good pension at 60. He took 25% cash tax free about £10,000 and the rest was put into an annuity, it pays £200 per month. He could have paid more in, but never got advice, so I would do some research online. Myself I have a Nest Pension, the government do add to this and fees seem to be quite low. Are you paying your Class 2 national insurance, as I understand it, it tops up the State Pension, which DH now gets and it’s the full amount.

For many years I paid in £50 a month. Now it's £500 or more if I can.
Vanguard Investor SIPP is low cost. They accept personal contributions. If you operate through a limited company, then if you have a debit card for the company in your name I think they accept that.

Find a low cost provider who has a system which you will use. No point having something low cost but you find it a pain to change payments. You want to be able to change payments, as your income may not be regular.

Yes class 2 and 4

All are up to date as checked my gateway and says £221 a week

Should have known to have asked you @nannynick 😄

I def won't be doing £500 a month

But if have a good month be nice to add an extra lump sum

Is nest better than who you are with

Nest has a high initial contribution charge. 1.8% I think they charge on what you pay in and on the tax relief.
So less money goes in, less is there to grow. However long term their ongoing charge is 0.3% which is quite low.

I have now got my ongoing charge with Vanguard to 0.27% and there is no initial contribution charge. So depending on fund choice you can get lower cost than Nest.

Employers I have had Nest with, but self employment I use Vanguard.

Thanks Nick. I will look at vanguard. Do uou have any kinks as know you are the king of links 😂

The % rate sounds very low

Is that for all funds by then or you have to shop Around

I have a Sipp with Legal and general. Also self employed and trying to put as much as I can in. So far at 15k! Hoping to save 50k by the time I retire. I like playing around with the options,ie take a lump sum or what annuities they offer.

My friend who doesn't have a pension has just opened one with them too.

We have a SIPP with HL, I know its shares so can go up and down and we do manage it carefully ourselves but we pay £1000 pm via our limited company so tax efficient.
As of yesterday we had made 30% on it

I have a pension through Penfold. I pay directly into this from my limited company. Seems to be performing well.

I can't imagine putting in 500 or 1000 a month

I have upper my dd to £50

And plan to pay in extra when I can

I just don't know who /which company to move it to

When I gogglw sipp so many ads pop up

So on the thread we have

Scottish widows

Vanguard

Legal and general

HL - who is this

Penfold

So will look at all of these

@Roserunner who did they recommend you go with

One thing about Nest pensions, as far as I understand it, is that your money is protected
I'm not sure about any other the other companies. What would happen if they went under?

HL is Hargreaves Lansdown.

I'm not SE but had a personal pension for years, recently moved to Transact, and managed by an IFA. I've chosen risk level for investments etc, but they manage what investments are bought and sold.

I also have an employment pension, I pay in 10% of my gross, and my employer pays in 3%, about to increase to 5%. That is with Nest, but moving to Scottish Widows.

It's really important when SE that you calculate your charge out rates to include elements for holiday, sick pay, pension, tax etc and then put these amounts aside. This is effectively what you're doing when employed after all.

He works for Quilter so they worked out best rates as we get discounted charges.

Seems many employed have nest

But I'm obv se

Dh and I are SE, but overseas. Here we have to pay a minimum of 9.7% to pension monthly if SE. So just under 10% income.
It’s a higher % if employed as employer matches. So could you aim for 9 or 10%?

Vanguard fund costs vary but roughly 0.12-0.23 range. Platform fee is 0.15%. So you can get as low as 0.27% and can get higher. I was at 0.37% using a Lifestrategy fund.

Keep things simple. One global equity fund, or a multi-asset fund (mix of equities and bonds) such as LifeStrategy 80%, is all that is needed for many who are building wealth.

www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

Video:: The simplest way to invest

m.youtube.com/watch?v=UsV0QyAirWU

Would second this. I wouldn't really use Nest.

You get the same tax relief wherever.

I’m with Transact like a PP. I am SE through a ltd co so tend to do one off payments at the end of the tax year.

I'm with AJBell and was advised by my FAdviser what funds to split between and we've reviewed regularly for the last few consistently increasing by about 20% per annum, BUT I am a risk assessment 10 (well he said off the scale) which is the highest risk you can be (assessed for risk aversion). I am going to start paying £600 per month into my pension towards the end of the year when my extension is finished as I'm a higher rate tax payer this year.

I’m in v similar position to you OP - have been SE for 15 years and haven’t really been paying into a pension for that time (very ad hoc) and now unsure where to start paying in. I’ve had a Ltd co for past 7 years.

I have a Nest pension from a previous employment that I’ve been wondering whether to pick up again.

but have also been wanting to start a Vanguard fund and reading the thread am now thinking that might be the way to go.

do others think it makes sense to have two different pensions going or all into one pot?