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The Pension GapUnlike employed workers who benefit from auto-enrolment, self-employed people in the UK must arrange their own pension. Only 16% of self-employed workers are saving into a pension — a worrying statistic.Your OptionsPersonal Pension (SIPP): The most flexible optio...
Key Information
- Last Updated:
- 26 Jul 2026
- Category:
- Money Tips
- Reading Time:
- 1 min read
The Pension Gap
Unlike employed workers who benefit from auto-enrolment, self-employed people in the UK must arrange their own pension. Only 16% of self-employed workers are saving into a pension — a worrying statistic.
Your Options
- Personal Pension (SIPP): The most flexible option. You choose your investments and get tax relief at your marginal rate.
- Stakeholder Pension: A simpler, lower-cost option with capped charges.
- NEST: The government-backed scheme. Low fees but limited investment choices.
Tax Benefits
Every £80 you contribute is topped up to £100 by the government (basic rate relief). Higher-rate taxpayers can claim additional relief through their tax return.
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Share your experience or ask a question about this article.
Remember, you can save up to £40k annually into your pension without incurring tax charges, but this includes employer contributions too. Useful for planning those larger lump sums.
I'm glad this article highlights the pension gap for self-employed people. However, could you clarify how NEST's fee structure compares to other options? I've heard they're not as low as initially marketed.
I'd add that if you're earning above £110K, watch your contributions as they may start to be taxed due to the pension contribution taper.
I've just started my self-employed pension. Is it better to go for tax relief immediately with a SIPP or stick with NEST's simplicity?
I appreciate how this article highlights the 16% pension saving gap among self-employed individuals. Remember, you can claim tax relief up to your highest marginal rate, effectively turning every £80 saved into £125 at a 40% rate.
Did you know, for every £1 contributed to your pension before age 75, you can receive up to £2 tax-free upon withdrawal? This makes pensions a powerful tool for self-employed individuals.
I found this article incredibly helpful. As a self-employed individual, I was unaware of the pension gap until now. The detail on tax relief is particularly useful – knowing that higher-rate taxpayers can claim additional relief is great to know.
I'd add that for high earners, pension contributions are limited to the lower of £40,000 or 100% of your earnings. Keep this in mind when planning your annual savings.
I'm impressed by these options but can someone clarify how the government's top-up works if you're self-assessing your income?
Just started my own business, so this is a great reminder to start thinking about retirement! Which pension option did you find best suited your needs?
I've just started saving for retirement myself. As a freelancer, I'm glad to know about these pension options. Which do you lot find best value?
While I understand the importance of planning ahead, I'm curious why NEST fees are considered 'low' compared to other options? Could you elaborate on that?
Just discovered this article while trying to sort out my own pension as a freelancer. Cheers for the clear rundown of options – now I'm off to check out SIPPs!
I've just started saving into a SIPP. Any tips on which investments to choose for maximum growth? Cheers!
I'm glad to see this info on self-employed pensions, but could you clarify how NEST's limited investment choices might impact long-term growth?
I'm interested in self-employed pensions, but I'm not sure why just 16% of us are saving into one. Could someone shed some light on this?
I've just started freelancing – that pension gap stat really hit home. Any self-employed lot out there, which pension provider did you go for?
I'm from Bristol and I've been meaning to start thinking about my pension. This has given me some great options to consider, thanks!
Good point about auto-enrolment. Note that since April 2019, self-employed individuals earning over £50k can claim tax relief on pension contributions up to £3k, even if income falls below this threshold.
I'd recommend considering the new pensions lifetime allowance freeze at £1.07 million from 2026 for SIPP holders.