I love freelancing, but what about my pension?

Saving for retirement as a freelancer feels like a struggle when you’re surviving month to month. But not doing so would be a big mistake. Here’s how to get started.

Welcome to another edition of Dear Boom, our advice series tackling the questions that keep creatives up at night. This week’s worry is one many of us share but rarely discuss.

“I love freelancing, but I worry about the future,” writes an anonymous creative. “When money is tight, and you’re focused on surviving month to month, saving feels impossible. I don’t have a pension, and I don’t know where to start. What do other freelancers actually do?”

It’s a question that deserves a proper answer, because the stakes are higher than you might think.

Why this matters

Here’s the uncomfortable truth: if you’re self-employed, you’re not automatically enrolled in a pension scheme like the 20.8 million full-time employees in the UK. No employer contributions. No automatic deductions. Just you, making a choice every month about whether future-you matters as much as present-you.

The State Pension currently sits at around £11,500 per year. Try actually living on that, and you’ll quickly realise why this matters. And yet, many of us simply push it to the back of our minds. Illustrator and graphic designer Lisa Liglou tells a typical story, admitting: “This is clearly a topic I put under the carpet since I started as a freelancer.” She’s not alone. According to 2025 research from PensionBee, nearly 30% of gig workers say they wouldn’t know where to start with a pension.

But here’s the thing: you can start now. And the earlier you do, the longer compound interest has to work its magic on even modest contributions.

The tax incentive

Before we get to the practical steps, let’s talk about the part most freelancers miss: pensions are one of the best tax breaks available to you. Every pound you put into a pension reduces your taxable profit, meaning you pay less tax overall.

Graphic designer David Sedgwick outlines what this looks like in practice. “I put an amount into a private pension monthly,” he shares. “It’s a direct debit from my business account. Then every year before my tax return, I make sure to pay a larger lump sum into my pension. It’s not millions, but maybe £10-20k if it’s been a decent year. The main reason for this is that it’s a tax-deductible expense that comes off your profit. So it’s a win-win situation.” (It’s worth noting that total tax-relieved pension contributions are capped by the Annual Allowance, which currently stands at £60,000.)

Basic-rate taxpayers receive an automatic 25% top-up from the government through tax relief. Pay in £100, and it becomes £125. That’s free money you’re leaving on the table by not having a pension.
David’s regret? “I’m angry I didn’t do more sooner, but it’s like saying, ‘When’s the best time to plant a tree? A: 20 years ago. When’s the second-best time? A: Today.’”

Your actual options

For UK freelancers, there are three main routes to consider.

Personal pension schemes such as PensionBee or Penfold offer simplicity and flexibility. You choose a plan based on your risk tolerance and values (e.g., fossil-fuel-free options are available), and professional fund managers handle the investments. There’s no minimum contribution with many providers, so you can start with whatever you can afford.

Brand strategist Andrea Boughton says: “I can’t afford not to! I’m with Penfold and love the flexibility: a tiny amount is better than nothing. And it’s tax-deductible.”

Lifetime ISAs (LISAs) through providers like Moneybox work differently. You can save up to £4,000 per year and receive a 25% government bonus (up to £1,000 annually). The catch? You can only access it to buy your first home or after age 60. Also note that you must be 18–39 to open a LISA, but you can contribute until 50. Artist Marie Jones uses Moneybox’s auto round-up feature: “It automatically rounds up from my current account when you spend,” she explains, “and then I’ll try and add bits here and there.”

Self-Invested Personal Pensions (SIPPs), as recommended by graphic designer Luana D’Elias Thomas, give you full control over your investments if you want to be hands-on. Many freelancers, however, prefer the simplicity of a ready-made personal pension.

Making it actually happen

The psychology matters as much as the mechanics. As Colton Major, founder of MAJOR Brand House, puts it: “It needs to be looked at as a business expense. Raising rates by even 2% is a great start. Small amounts add up over time. Take care of your future self, no matter how small it is.”

Brand and motion designer Jamie Quantrill breaks down how to do this in practice. “Top it up every month with whatever amount you can, whether it’s £20 or £200. Think of it like an expense, and you won’t even think about it as spendable cash. If you reach year-end with a bit of surplus saved up, put a larger one-off payment in your pension. Even the small monthly amounts will compound over a long period of time.”

There’s no one single way to organise your pension, but here’s what it boils down to in simple terms. Set up a direct debit. Automate it. Make it invisible. That’s the advice that came up repeatedly in our discussion.

Start with what you can afford

Signwriter Rachel E Millar emphasises starting as soon as possible. “For self-employed people, I think it’s so crucial to start early with a pension,” she stresses. “The government will top it up by 25% of your investment every month, and you can start by putting in as little as £20 a month, which is the same as so many subscriptions that people already pay for without a second thought. It builds up without me even noticing and makes me feel like I’m looking after my older self.”

Earning irregularly? Try the 50/30/20 rule on each month’s income: 50% on essential living costs, 30% on discretionary spending, 20% towards savings and debt. Even if you can only manage 10% some months, that’s still better than zero.

The long view

Nobody wants to think about getting old when they’re busy trying to make rent. But compound interest rewards those who start early, even with tiny amounts. A £50 monthly contribution starting at age 30 will likely outperform a £200 monthly contribution starting at age 50, purely because of the extra time to grow.

PensionBee’s research found that half of British gig workers say they can’t afford to save into a pension. But “can’t afford” often means “haven’t made it a priority” or “don’t know how to start.” If you’re reading this, you’ve already taken the first step: acknowledging the problem.

The second step is simpler than you think. Open an account with PensionBee, Penfold, or another provider. (Note: this is not a sponsored post; we just happen to like these two companies. Others, as they say, are available.) Set up a monthly direct debit. Treat it like your phone bill: non-negotiable. Then, when you have a good month, top it up.

Future-you will be grateful. And present-you might sleep a little better knowing you’ve started.