Frequently Asked Questions: Pensions for Self Employed

Am I eligible to claim a state pension if I am self employed?

As long as you are paying class 2 National Insurance contributions (NIC) then you will qualify to receive a State Pension. The amount that you will be entitled to will be calculated in the same way as that for a salaried employee.

Is there a minimum amount a self employed person should contribute to a retirement fund?

Ideally you should always try to contribute as much as you can to your fund but the amount will depend on your present and future lifestyles, your income and your attitude to risk.

Can I get tax relief on my contributions even if I’m self employed?

Based on the level of your contributions and your income tax band the government will top up at a basic rate of 20% and any higher rate tax can be reclaimed via self assessment. If you receive a salary from your own limited company then you can make employer contributions to your retirement fund and these will not be subject to Corporation Tax