Contractor Pension

[Daplayer321]

Hi All,

I just wanted to get some general views around contractor related pensions.

Now I understand the potential tax savings that having a pension could have (LTD company paying into pension pot), however when I speak to fellow contractors there are usually mixed views around this topic such as-

1) Yes pension is great due to the tax savings it brings

2) No don't bother, better to invest to invest the money in yourself i.e buy properties and other investments.

I'm 31 and I've been contracting for 6 months now and built up a decent bank account and savings and am looking to get a mortgage soon through one of the contractor related mortgage brokers but I keep getting asked questions about pensions by my colleagues as well as my accountant (from a tax saving perspective) and I'm in 2 minds.

I have 2 pension accounts from my previous permie jobs, I would like some opinions from this forum around what their views are around getting a pension as a contractor and also whether it's worth consolidating the different pension accounts from previous permit jobs.

Much appreciated

[SueEllen]

Put your eggs in different baskets not just one.

That way if one goes wrong e.g. your BTL properties get smashed up repeatedly, the stock market plummets for a long time or the government changes the tax laws on one of your baskets, then least you have some other forms of savings.

Also in terms of one of those baskets - pensions - do a search on SIPPs.

BTW if any of your pensions are final salary leave it well alone.