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Topic: Self-Employed Pension  (Read 915 times)

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Self-Employed Pension
« on: March 08, 2007, 09:57:29 AM »
my UK domicled, UK resident partner is self-employed.  he wants to start a pension.  is it best for him to start a Maxi ISA?  i've searched the usual online sites and i can't find anything about this situation specifically. 
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Re: Self-Employed Pension
« Reply #1 on: March 08, 2007, 10:35:19 AM »
Hi,

This may be helpful:

http://www.fool.co.uk/school/2005/sch051202.htm

The difference between a pension and an ISA is the time of taxing. The contributions to an ISA have already been taxed, and the returns will never be taxed. The contributions to a pension are not taxed, but the money will be taxed later as it is withdrawn throughout retirement.

There are a few different options for the self employed. Hopefully the link will help.


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Re: Self-Employed Pension
« Reply #2 on: March 08, 2007, 08:52:02 PM »
You can't take money out of a pension till you are 55, which could be a problem if you need quick access to cash. Or possibly a good thing if you tend to spend money when you shouldn't.

You also want to look at how the particular pension or maxi isa is invested, thinking about the amount of risk you are comfortable with and about creating enough income growth to deal with inflation. Note that inflation affects older people much more than it affects younger people.

P.S. If he is self-employed make sure that he making enough NI contributions to qualify for the basic state pension.
« Last Edit: March 08, 2007, 09:00:23 PM by sweetpeach »


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