Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Work

Chat with other users about all things related to working life on our Work forum.

Self employed need to set up pension

1 reply

MooQuackNeigh · 18/12/2023 18:33

Can anyone advise me about setting up a private or company pension? My state pension contributions are being taken care of via child benefit credits and will for the next 8 years. It makes sense to pay into a private scheme on top as my income is now above the zero tax threshold.

My limited company is about 2.5 years old, I am director and only employee currently but my husband has just been made redundant and may join my company in the new year probably as co-director to start his own contracts in an adjacent but different work area.

My business only made 9k this year but this is likely to rise every year until I'm working nearly full time so eventually 30-35k hopefully. OH and I have passive income of about 14k per year from a rental property. OH will likely be making 40kish once he is back in work, probably more on depending on IR35 compliance of whoever he works for.

I don't know if there is a sensible way to sort out a pension, should I just go to the market and choose one or is there a better way to set one up via the company?

My work is project based so income is variable month to month so ideally I'd like one that I can just contribute to as and when I have the cash or perhaps has a minimum monthly input and I can top up.

We've had a bit of a panic about our retirement and need to sort it out! I'm 36, he's 46 if that's relevant.

OP posts:
Flossflower · 18/12/2023 19:10

We are now retired but had a Ltd company. We made Employer contributions into pension funds from the Ltd company. I am a bit out of date and I am sure somebody wiser will come on later. You can either see a Financial Advisor or set up a SIPP with somebody like Hargreaves Lansdown, AJ Bell etc. If you are working under IR35 then pension contributions would help towards the IR35 calculation.
Another good way of investing for retirement is using your ISA allowances every year to set up a stocks and shares portfolio. Income from this varies but when you draw down from this in retirement you should get about 3% of the total sum invested yearly ( figure might be out of date). This will be tax free and the investment will remain intact and can be passed down to your children. Stocks and shares can be volatile though.
I have made bad financial decisions in the past ( like investing with Equitable Life) so maybe I am not the best person to advise you.

New posts on this thread. Refresh page
Swipe left for the next trending thread