Now self employed - assume I will need a private pension.

[MiseryIn]

Any advice would be gratefully accepted.

I'm about to become self employed for the first time. I currently have a fairly meagre workplace pension (has about £20k).

I'll be able to put around £400pcm into my private pension I think - do I just start one anywhere and pay in or should I be looking for something specific?
My parents always used Scottish Widows - are they still decent?

Thank you!

How old are you

Also, spread your risk

So some in pension, some liquidity, some ISA, some property etc etc.

Look at the charges. Seemingly small differences in percentages can compound into a significant amount

Big names that have been around for decades and advertise on TV and likely have fancy offices etc will probably charge you more than a modern no frills internet operation.

But the main thing is to just start saving. DP dithered for years because he didn't know what he was doing and with hindsight, he should have just started shoving money in a SIPP as the growth and tax relief will be higher than cash savings whichever product you check.

Vanguard have recently been a good low cost option but have increased their charges a little, but I don't know how it affects costs in practice. They're very well regarded so there's probably some articles on the change and whether they're still a good option.

Thanks. I'm 50. I have modest savings and will also be adding to those but it's my pension that worries me.

50 you say? Yes put it in a pension, as a pp said check charges.

I am also self employed and in my 50's. In recent years despite having started a personal pension through my bank in my 20's while employed, I decided to significantly up my pension contribution ( I couldn't increase the contribution to my earlier pension).

I can't say I did exhaustive research and probably didn't fully understand what I was doing but figured something was better than nothing.

I started off with NEST as a self employed option. They put you in a fund commensurate with your expected retirement age. In my recent times I switched this to the Sharia fund.

I then started a Vanguard one as well. I just decided not to put all the eggs in one basket.

All 3 are doing OK. I don't really know how to measure or benchmark them but it's all going in the right direction.

Nest is easy to use, and the management fee is very competitive , but they charge a fee on contributions so you may wish to bear that in mind.

Generally speaking pension would be better because of the tax relief. You should get an accountant if going self-employed especially under a limited company as they will know the most lucrative way of dealing with £400

Thanks. Yes I have an accountant and I know roughly what I'm doing tax wise. Earnings not massive - £60k or so but obviously going to try and make it work however I can with tax relief

If you are comfortable with arranging your own investments, any cheap Sipp will do. I like Hargreaves Lansdown, not the absolute cheapest platform at 0.35% but excellent service and you can do everything online.
You can get very cheap index trackers or mixed asset funds at a cost of 0.1% to suit your risk appetite.
Otherwise you need a robo platform or personal pension, which will have a much narrower range of investments.

I'd suggest speaking to an IFA. I pay £850 a month in to a medium risk plan through my company (if you have a company, do it as a company contribution, not personal, as you get Corporation Tax relief and it effectively comes out of gross income, not net) and it's achieved over 12% growth in the last 12 months.

My IFA did an assessment with me to determine how risk averse I was then found an appropriate plan (mine is with Royal London). I have some very minor charges coming out of mine and he earns his income through commission from Royal London.

I agree with a pp. Speak to an independent financial adviser IFA, who can look at your whole financial position and advise you on the best policy for your circumstances. Maybe ask your accountant if they know of someone suitable.

I love that you reocognise the need to start your own pension now that you are self employed (so many self employed people don't think about it).

Here are some ideas of what you could do to make sure your pensions are on track:

1. Make sure your state pension is accurate and up to date (check your record on .gov website).
2. Make sure your existing pension is invested in the right way for you (focus on cost and how it's invested given how long you have until you will need access to the money)
3. with your new pension, know that you will potentially get tax relief of up to 40% on this based on your earnings of £60k (in english when you pay in £600 you end up with £1,000 to invest)
4. in terms of choosing provider - find a low cost provider, as pps said small differences add up over time.
5. make sure the investment you choose reflects the time you will leave it invested for. Funds you need in shorter term should be lower risk, lower return, longer term investments you can afford to aim for higher returns.

I like these people. Easy to use app. Can see all savings / pensions / investments in one place. Diversified but one stop shop for awareness of how your finances are doing.

https://www.moneyboxapp.com/