Money & Finance
Self-Employed Pensions
No employer means no workplace pension and no employer contribution. Here are the options open to you, and the tax relief that closes some of the gap.
Free tool
Workplace Pension Contribution Calculator
See how much goes into your workplace pension each month, split between your contribution and the money your employer adds on top.
Going into your pension£192/mo
£863 free from employer£2,301 a year, of which your employer adds £863.
| Pensionable pay used | £28,760 |
| Your contribution (5%) | £120/mo |
| Employer contribution (3%) | £72/mo |
The legal auto-enrolment minimum is 8% of qualifying earnings (£6,240 to £50,270), at least 3% from your employer. Your own contribution usually gets tax relief on top, so it costs you less than the figure shown.
How workplace pensions add up
Under auto-enrolment, most employees are put into a workplace pension automatically. The legal minimum is 8% of your qualifying earnings (the slice of pay between £6,240 and £50,270), with at least 3% coming from your employer and the rest from you.
Why it is worth staying in
- Free money. Your employer’s contribution is effectively a pay rise you only get if you stay enrolled.
- Tax relief. Your own contributions are topped up by tax relief, so a £100 contribution can cost a basic-rate taxpayer just £80.
- Compounding. Paid in monthly over a career, it grows on top of itself, see the pension calculator for the long-term picture.
Keep reading
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