Self Employed? – What Pensions Will You Receive When Its Time To Hang Up Your Boots

 When a person retires from his job at a mature age, he/she is liable to get a good amount of money as monthly pension. This pension helps the aged people to carry on with their normal lifestyle, even if their salary is no more adding to their bank accounts. But the self employed people cannot expect that regular pension that salaried people get from their employers. Still, there are many options for these self employed persons, which provide them their required pension amounts after they stop working.

Types of pensions available for the self employed mass

 State pensions – State pension is offered to all aged people, irrespective of the fact whether they were salaried or self employed in their early life. This pension amount is quite enough for feeding a single person; however, they may need more money for running other expenses for their families.

  • Pension policy – Pension plans can be purchased from any insurance company or share trading organization, while the buyer is still at his/her regular self employed service. So it is best to invest a certain sum of money for buying a suitable pension scheme from a local insurance company, after considering the required pension amount after stopping their usual job.
  • Share trading investment – The stakeholders can use the money inflow from their purchased shares of renowned companies, as the personal pensions that help to meet all their normal expenses after their retiring age. So the investment should be done after calculating the probable regular income that can be obtained from these purchased shares.
  • Savings through NEST – National Employment Savings Trust is a reliable government organization where the employers save some money for the pensions of their employees, which is enhanced by the sum added from the NEST. Likewise, the self employed people can save money in the pension pot of NEST and get the benefit of this saving after they stop working and choose to enjoy retired life. They just need to enroll their names in the saving schemes of the NEST and ensure steady income in later age.

When the self employed people start saving money in different pension schemes, they get certain discounts on their income tax as a part of the government’s policy. So these pension plans also help in saving their hard-earned money due to these tax relief options.

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