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.

📊 How does your pension compare? See the Over 50s Finance guide to retirement income for benchmarks and strategies.