SJP Self employed pension
Being self-employed means that it’s likely your income will fluctuate from year to year, and it can be a challenge to save on a regular basis.
Also, depending on whether your business is just starting up, or perhaps already more established, then your cashflow and savings ability will be in very different places.
Most pensions allow you to make ad-hoc contributions or regular top ups as you go, and you will still receive tax relief to boost your contributions. Saving into a pension will provide you with a way to fund your retirement, which makes good sense as we don’t know what the future will hold.
In 1998, 48% of self-employed workers contributed to a private pension, but by 2018 this had fallen to just 16%. This drop has occurred despite self-employed numbers increasing by about a third over that period.1
This means it is essential to make plans for contributing to an individual arrangement in order increase your financial security in retirement.
All employers have a duty to provide workplace pension schemes; currently there is no automatic enrolment process in place for the self employed, so it is therefore down to the individual to start building retirement savings. Private pensions for the self-employed can be easily set up, but speaking to a financial adviser is a vital step to make sure everything fits with your financial goals.
1Institute For Fiscal Studies, 2023
Top tips for setting up and managing your pension
Why is setting up a self-employed pension important?
If you are self-employed, you cannot join occupational pension schemes, although you will receive the Basic State Pension and Flat Rate State Pension, which came into effect on 6 April 2016 (subject to a sufficient National Insurance (NI) record).
This means it is essential to make plans for contributing to an individual arrangement in order increase your financial security in retirement.
A St. James’s Place Partner will be able to help you, not only with your retirement planning, but also how you can think ahead with your future business planning.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.

Frequently asked questions
A self-employed pension is a Defined Contribution scheme whereby you chose an amount to contribute, which could be monthly, or perhaps on an ad-hoc basis, which is then invested over the longer term with a view to growing your capital for retirement.
How much you pay into your pension depends on your earnings and the tax bracket you fall into, so it is best to get financial advice to plan for your lifestyle now, and in retirement.
Yes, self-employed are entitled to the State Pension the same as anyone else. However, the State Pension is based on your National Insurance Record. This means it is important to ensure your National Insurance contributions are up to date, and any gaps are filled, so that you are entitled to a full State Pension.
Let us help you find a local adviser
Find a local adviser
Let us help you find your local financial adviser
Find your local financial adviser
Business exit strategy
For many self employed people, building a business is often seen as a way to create capital value in the future, and form part of a retirement plan.
However, realising the value from your business at the right time can be potentially problematic. Having a business exit strategy in place is worth thinking about, even at an early stage; are you going to sell the business as it is, or hand over to a family member, perhaps retaining an interest and some income?
Exit strategies may involve the referral to a service that is separate and distinct to those offered by St. James's Place.


