Pension Planning for Self-Employed People in Belfast and Ballymena

When you work for yourself, the amount you can set aside for retirement can change from month to month. You may also have pension savings from a previous job that you have not looked at for years. Start by putting your existing pensions, household costs and income from work on one page. That will help you see which decisions need attention first.

Find out what you already have

List each workplace and personal pension you know about. Find the latest statement or ask the provider for an update. For a pension that builds up a pot, record its current value. If you have a pension that pays an income based on salary and service, note the estimated annual income and the age it is due to start. Those figures describe different things, so keep them in separate columns.

If you remember an employer but have lost the paperwork, the Pension Tracing Service can help you find contact details for the scheme. You can then ask the provider whether you hold a pension with them and what it may pay.

Get a State Pension forecast as well. It can tell you how much you might receive and when you can claim it. Compare that date with when you expect to stop or reduce work. If they are several years apart, you can discuss how you would cover the gap.

Use a quiet month to test your budget

Start by comparing a typical month with one when you earn less. For each, work out what’s left after essential household spending, work expenses and money set aside for tax. Use those figures to decide what you can comfortably set aside for retirement.

Write down which costs are predictable and which could arise at short notice. You might need to replace equipment you rely on or cover essential bills if you have to take time off. Bring that list to a pension review so you can discuss how much to keep available before setting money aside for retirement.

If you are considering making pension contributions through a business, speak to an accountant about the options for your business structure and circumstances. A financial adviser can help you see how a contribution would fit into your retirement plan.

Think about what stepping back would look like

Pick a rough date or age when you would like to work less. Estimate what you would need for essentials such as housing and bills, then add the spending you would like to keep for family, travel or hobbies. Consider whether part-time work could form part of that plan and how you would manage if it ended earlier than expected.

If you plan to sell or hand over a business to help fund your retirement, sketch two versions of the plan. In one, the change happens when you expect. In the other, it takes longer or brings in less than you had hoped. An adviser can discuss how your pensions, savings and other income might cover the difference.

If you are approaching retirement and want to understand ways of taking money from a defined contribution pension, check whether you are eligible for free Pension Wise guidance.

Prepare for a pension review

Gather your latest pension statements and State Pension forecast, plus rough figures for household spending, income from work, savings and debts. Write down anything that might change over the next few years, such as paying off a mortgage, changing the work you do or reducing your hours. A rough estimate is enough to start a conversation.

Ask how much the initial advice and any ongoing service would cost, who would review your plan and what would prompt an update. Our guide to choosing a financial adviser explains what to ask about fees, qualifications and regulation.

This guide is general information. Pension and tax decisions depend on your circumstances, and rules can change. Pension investments can fall in value as well as rise.