Do I Have to Move My Whole Pension to Drawdown?
Question asked by Ms A Banks
I’m self-employed and don’t currently have a pension. What’s the best way of starting a new pension? Can I start one myself?
Yes, there are plenty of pensions for the self-employed to choose from, from including stakeholder pensions and SIPPs (Self Invested Personal Pensions).
You can claim tax relief on your pension contributions in the same way you would if you were an employee. Your pension provider claims back basic rate tax on your behalf, and you can claim back any further tax relief through your self-assessment tax return.
For more on how much tax relief you’ll receive on your pension contributions, use our Pension Contribution Tax Relief Calculator here →
If you don’t make your own pension provision, then you will only generally qualify for the State Pension. For most people, this will not provide an adequate income in retirement.
To discuss your options further please feel free to contact us to speak with a qualified pensions adviser who can provide you with the necessary financial advice.
In additional to not having an employer providing you with a pension, those who are self-employed do not receive sick pay and therefore often find it useful to arrange an Income Protection policy.