Pensions when you're your own boss
Lesson 9 of 13 in our free Pensions guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Pensions is free for everyone.
Got a code? Unlock this lesson
Questions you'll answer
Mo's income goes up and down. What's a practical way to keep paying into a pension?
Quick facts
- Auto-enrolled into a workplace pension → Employee. Only employees get auto-enrolled.
- Can get tax relief on personal pension contributions → Both. Both can get tax relief.
- Must set up and fund their own pension → Self-employed. No employer to do it for you.
- Builds State Pension through National Insurance → Both. Both — employees through Class 1, self-employed through their own NI.
- Fact: “A Lifetime ISA can be accessed penalty-free from age 60.” — It's one option some self-employed people use alongside pensions. Other withdrawals face a 25% charge (except a first home).
- Myth: “Self-employed people can't get any tax relief on pensions.” — They can, through personal pensions.
- Myth: “Self-employed people don't build up State Pension.” — They usually do through their National Insurance record.