A personal pension plan could be a good option if you’re self-employed, which means you won’t automatically be enrolled in a workplace pension. You’ll get tax relief at the basic rate. Higher and additional rate tax payers could claim back the difference. Pensions also grow tax efficiently and you can take up to 25% as a tax-free lump sum on retirement. You can either make regular or lump sum payments to your provider.
If you already have a personal pension plan, ask your provider for a forecast to find out how much you’re likely to get when you retire.The amount you’ll get when you retire depends on a few different things, including how much you’ve paid in and how well the fund’s investments have done.