Why Nest makes sense for the 
self-employed

When you’re self-employed, choosing whether to pay into a pension can be difficult. As you don’t have an employer to enrol you into a scheme, like other workers do, taking the first step is in your hands.

Should I save into a pension?

Contributing to a pension is one of the most effective ways to save. If you’re eligible the government adds at least 20% tax relief to every contribution you make, meaning you get extra money in your pot. Your contributions are invested too, which can boost your savings even further.

Why is Nest right for me?

From saving you time to giving you flexibility, here are five reasons why Nest makes sense for the self-employed. 

1. It’s easy to get started

Whether you’re running your own business or juggling freelance roles, your time is precious. That’s why we’ve made it quick and easy to set up your Nest pension.

All you need to do is:

• use our checklist to make sure you’re eligible
• complete this short sign-up form

You can then manage your pot using your online account. When your pension is this simple, you’ve got more time to focus on your day-to-day.

Around one million employers use Nest as their pension provider, so you might already have a pot with us if you’ve worked for one of them. If so, there’s no need to create a new account – you can simply use your existing details.

2. You’re in control

Self-employed earnings can be unpredictable from one month to the next, making it hard to budget for pension contributions.

We let you choose when and how you contribute. You can make one-off contributions using a debit card. For example, you might:

• contribute a percentage of your monthly earnings
• pay a lump sum after completing your annual tax return
• calculate a percentage of each invoice you issue 
• turn any spare cashflow into a contribution  

You also have the option to make monthly payments for a fixed amount by Direct Debit. It’s worth setting yourself reminders to think about contributions whenever you do your bookkeeping, whether that’s monthly, yearly, or after each project. 

3. Pay what you want to

If there are times when contributions don’t feel affordable, you can choose to pay in less or pause your payments. However, even contributing small amounts can build up your savings.

With Nest, you can pay in as little as £10. If you contribute this amount every month for 10 years, you’d have around £3,000 for your retirement. And if you were able to pay £50 each month, you could save over £16,500. Both estimates include basic-rate tax relief that we automatically claim for you if you’re eligible – and most people are. 

You’ve got flexibility. If your income goes up or down and you want to change your contribution, it’s easy to do this in your online account.

4. You could beat the banks

Our team of experts will put your money to work, to try to grow it. This means we’ll invest it in different things around the world that we think will increase in value and boost your pot.

Our flagship Nest Retirement Date Fund aims to grow your savings by at least 3% more than inflation. So if you had £10,000 saved with us, we aim to boost that to £38,134 over 25 years – and that’s without you topping up your pot. 

High street banks and other savings accounts don’t tend to offer enough interest to beat the rising cost of living. While you might need quick access to your savings to cover unexpected business expenses, you could lose out by keeping all your money in a bank account.

5. Your Nest pension pot is yours for life

If you do move back into employment, you can keep contributing as and when you choose. And if your employer uses Nest, your workplace pension contributions will be paid into the same pot.

You can also transfer any pots you have with different providers to Nest. This means you’ll be able to manage all your pension savings in one
easy-to-use account.

Published 27 March 2023