Yes, definitely. In fact this is an area of finance in which a lot of self-employed people forget about. Get in touch today and we can help set up yours.

If you’re a UK taxpayer you, or you and your employer, can pay up to 100% of your earnings into a pension or pensions, up to an upper limit. For 2020/21 this is £40,000 a year.

The earlier you start saving into a pension, the better, since this gives your money more time to potentially grow in value. Therefore, the closer to your retirement age you are when you start saving, the more you would ideally put in each year.

You can usually start drawing from your pension at the age of 55, well before you are eligible to receive the State Pension.

The current State Pension is £179.60 per week, or £9,339.20 per year. How much you will receive depends on your National Insurance record of contributions over your working career.

Since 2015 you have been able to take all of your pension in a single lump sum at the age of 55. While 25% of it would be tax free, you could still end up with a big tax bill and it could also mean you don’t have enough income in retirement. It is always worth speaking to a qualified financial advisor before making any decisions like this.