A flexible pension for the self-employed

A personal pension is a long-term investment that allows you to save for your retirement in a tax-efficient way. Unlike a workplace pension, which is set up by your employer, you will need to set up a personal pension yourself.

Once your pension plan is open, you can start paying into it regularly or transfer other pensions to it. The money you pay in is invested so it has the opportunity to grow over time.

Remember that a pension is an investment. The value of investments can go down as well as up and you could get back less than what was paid in.

How much you should pay into a self-employed pension depends on many factors, including what kind of retirement you’d like and how much money you might need to fund it.

We have some useful resources that could help give you a better idea of your pension savings and retirement goals, including our Pension Calculator and “How much should I pay into my pension plan?” guide.

As a self-employed worker, you’ll still receive tax benefits from the government on the payments you make into your personal pension plan.

If you’re a basic rate taxpayer and pay £80 into your pension, the government will automatically add £20 on top of that. That means a £100 payment into your pension would only cost you £80.

If you’re a higher or additional rate taxpayer, you can claim back even more tax benefits via your tax return.

Remember that tax treatment depends on your individual circumstances, including where you live in the UK. Tax rules may change in the future.

If you’re self-employed, you’ll still receive a State Pension in the same way as someone who works for an employer would. That means your entitlement depends on your National Insurance (NI) record.

• To be eligible for the State Pension, you’ll usually need at least 10 qualifying years on your NI record
• To receive the full State Pension, you’ll need 35 qualifying years on your NI record. For the current tax year (2024/25), the full State Pension is £221.20 per week.

To learn more about how the State Pension works, read our ‘What is the State Pension?’ guide.

If you’re self-employed, you may not have a consistent stream of earnings coming in. So we’ve made our self-employed pension plan as flexible as your income. If you need to change, start, or stop your payments, you can do this at any time online or via our app.