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How To Easily Set Up A Self Employed Pension

Having been self-employed since age 20 I’ve kind of never really thought about ‘when I’m older’ as I’ve been living in the moment. However, as the big 3-0 creeps up on me at the end of this year I’ve really been taking stock and doing some financial planning. If you too running a business or a money-making blog then you too should be thinking about your self employed pension.

Self-employed pensions are really important, especially later on in life. As you are your employer you should be making regular contributions to a pension pot. You can choose how much you wish to invest monthly. It can be as little or as much as you can afford. Plus you can put this as a deduction through your accounts too.

What’s best is the Government will add another 25% on top of your contribution (if you earn under £40,000pa). For example, if you invest £100 a month into your pension pot, the Government will top it up by an extra £25 each month. That’s an extra £300 a year! 

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Plus then interest is added on top of this in some instances. This is solely dependant upon where your pension is being paid into as how much interest you receive. The more you put into your pension now, the more you’ll have when you retire. As your investment will be accruing money on top of the money you put away.

If you haven’t previously started thinking about a self employed pension then there’s no better time than now. You are able to add pension payments as a deduction when you are doing your accounting too which means that you’re in a win-win situation when it comes to saving for the future.

No self employed pension. Could you live on this?

The current state pension is only a mere £8,767 a year. This is the maximum that the Government will give you. And the majority of people agree that this is not enough. So require an additional source of income after they stop working. That’s why a pension is the most common and tax-efficient way to do this. Regardless of what stage your business is at it is important to set aside a proportion of your earnings to ensure that you can live better later in life. 

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Once you turn 55, you are able to convert whatever you have set aside into your pension fund during your working years into an annual income for the rest of your life. 

Get £25 FREE with Penfold

I’ve decided to open my pension pot with Penfold, an FCA regulated organisation which specialise in digital pensions. You can get £25 FREE to start your pension off when you make your first deposit (as little as £1) here. They safely invest your money in bonds and shares and reward you with more money, known as Einstein Money. Basically, a really great compounding interest reward you’ll earn on top of your investment. Similar to big banks and building societies. Apart from your reward will be better simply because they don’t have the same amount of overheads as big corporations do. 

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With a Penfold pension, it is invested in a special plan provided by BlackRock. The world’s largest investment manager, who would continue to invest your pension if they ceased to exist. So, therefore, your money is safe. You can find out more about Penfold Self Employed Pensions and see if they’re right for you here.

If you know any self employed business owners and entrepreneurs we’d love you to share this post with them to help them on the way to a better future.

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It is worth noting though, with all investments the value you pay in can go up or down. Please seek advice from a Financial Advisor.

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Laura is an award-winning entrepreneur with a passion for all things luxury. With a penchant for travel, her favourite destinations are Vegas and Ibiza. Catch her at the latest bar opening with a cocktail in hand followed by mornings in the gym. She dotes on her little Jack Russell, Ziggy and has an unhealthy Instagram obsession. Home interiors continue to grow as a passion and she absolutely loves shopping for all things fashion and beauty too.


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