If you’re self-employed, make 2019 the year you sort out your pension

Being your own boss has risen in popularity over the last few years. There are now around 4.8m self-employed workers in the UK3, representing around 15% of today’s workforce. Whilst being your own boss comes with lots of benefits, it does mean that you have to be responsible for your own pension arrangements and can’t rely on an employer scheme.

Recent research4 shows that many self-employed people aren’t making provision for their retirement years. More than two-fifths (43%) do not have a pension plan. Up to two out of five (36%) say they can’t afford to save into one. Nearly a third (31%) expect to rely entirely on the State Pension to fund their retirement.


If you’re self-employed, saving for a pension can be harder than for employees. Irregular income patterns can make regular contributions more difficult. But there are plans available that can give you the flexibility you need, and the good news is that your contributions are topped up by income tax relief.

A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

3Office for National Statistics, Feb 2018
4Prudential, Aug 2018