fbpx

Contractor Pensions – Quick Guide

25th August 2017

A contractor should take out a pension as it offers many benefits in the long run. This quick guide will highlight the key points when choosing a contractor pension scheme.

Pension Funds for Contractors

As a Contractor, taking out a pension fund is a sound financial investment. You can draw from it when you reach retirement age at 55. It is protected by financial laws and it can act as a cash fund if it suits your needs.

Saving Tax with a Pension Fund

By investing in a pension fund, you can save on the tax that you would pay on your contractor income. The sooner you take out a pension fund, the sooner you will reap these savings. It is best for a contractor to pay for their pension fund from that of their company as you will receive more tax relief. However, if you do not have a company then you can also pay for the pension fund from your individual bank account.

Retirement Rewards

At the retirement age of 55 years, you can draw from your pension fund. The money can be drawn in lump sums and invested elsewhere such as in in property or other investments which will reap a new source of income. Investing in a pension fund will give you retirement rewards which can be used to maintain your lifestyle standard.

Insurance Providers

An Insurance provider that specifically meets the needs of a contractor should be sought. These type of Insurance providers will allow you to contribute to a pension fund as and how you want as they will recognize the nature of contracting work. You should have flexibility to decide how much and how often you pay into your pension fund. Always ensure that the Insurance provider that you have chosen has a good name and reputation as your pension fund will be a lifetime investment. It is advisable that you seek financial advice before choosing a pension fund provider.
 

FREE BROCHURE DOWNLOAD

Watch our quick introduction Video

FREE Brochure Download

Download our FREE Brochure for Contractors

Included in our Brochure:

  • IR35 Explained
  • How to Save Tax
  • Advantages and Disadvantages
  • Contractor Obligations & Responsibilities
  • Much more..

LEARN MORE ...

Your Money

A wealth of information on tax and financial issues

Your Business

Useful information on key issues for businesses

Interactive Tools

Useful calculators and documents

Tax Strategies

Tax planning strategies for all types

Sign up to our Newsletters

Join today and receive various How to Guides. We will also send you all the latest tax news and links to our latest Blog posts.

Privacy Policy

Accountants London
Company Registration No. 07078392