Welcome to another edition of Dear Boom, our advice series aimed at solving the problems that keep creatives up at night. This week’s concern is one that many of us have but are rarely discussed.
“I love freelancing but I’m worried about the future,” one anonymous creative wrote. “When money is tight and you’re focused on surviving every month, saving feels impossible. I don’t have a pension and I don’t know where to start. What do other freelancers actually do?”
This is a question worth answering correctly, because the stakes are higher than you think.
why this is important
Here’s an uncomfortable fact: if you’re self-employed, you’re not automatically enrolled in a pension scheme like the UK’s 20.8 million full-time employees. There are no employer contributions. There is no automatic deduction. It’s just you, making the choice each month to decide whether your future self is as important as your current self.
The current state pension is approximately £11,500 per year. Try to actually make a living at it and you’ll soon realize why it’s important. However, many of us just put it out of our minds. Illustrator and graphic designer Lisa Liglou tells a typical story, admitting: “This is obviously a topic I’ve been hiding since I started working as a freelancer.” She’s not alone. According to PensionBee’s 2025 research, nearly 30% of gig workers said they didn’t know where to start with their pension.
But here’s the thing: you able Start now. And the sooner you do it, the longer it will take for compound interest to work its magic on even a small contribution.
tax benefits
Before we get into the practical steps, let’s talk about the part that most freelancers miss: pensions are one of the best tax breaks you can get. Every pound you put into your pension reduces your taxable profits, meaning you pay less tax overall.
Graphic designer David Sedgwick outlines what this looks like in practice. “I make a monthly deposit into a private pension,” he shares. “It’s a direct debit from my business account. Then every year before I file my tax return, I make sure I pay a larger lump sum into my pension. It’s not millions of dollars, but maybe £10-20,000 in a good year. The main reason for this is that it’s a tax-free deduction from your profits. So it’s a win-win.” (It’s worth noting that the total tax-free pension contribution is limited by the annual allowance, which is currently £60,000.)
Basic rate taxpayers receive an automatic 25% top-up from the government through tax relief. Pay £100 and it becomes £125. That’s money wasted if you don’t have a pension. Does David regret it? “I’m angry that I didn’t do more sooner, but it’s like saying, ‘When was the best time to plant a tree? A: 20 years ago. What’s the second best time? A: Today.'”
Your actual choice
There are three main avenues to consider for UK freelancers.
personal pension plan The likes of PensionBee or Penfold offer simplicity and flexibility. You choose a plan based on your risk tolerance and values (for example, you can choose a fossil fuel-free option), and professional fund managers look after your investments. Many providers have no minimum contribution, so you can start with whatever amount you can afford.
Brand strategist Andrea Boughton said: “I can’t not do it! I support Penfold and love the flexibility: a little is better than nothing. And it’s tax-free.”
Lifetime ISA (LISA) Providers like Moneybox work differently. You can save up to £4,000 per year and receive a 25% government bonus (up to a maximum of £1,000 per year). What’s the gain? You can only use it after buying your first home or after turning 60. Also note that you must be between the ages of 18-39 to open a LISA, but you can contribute before age 50. Artist Marie Jones uses Moneybox’s automatic summarization feature: “When you spend something, it automatically sums it up from my checking account,” she explains, “and then I try to add a few bits here and there.”
Self-invested personal pension (SIPP)As graphic designer Luana D’Elias Thomas recommends, it gives you complete control over your investment if you want to get your hands dirty. However, many freelancers prefer the simplicity of a ready-made personal pension.
make it happen
Psychology is as important as mechanics. As Colton Major, founder of MAJOR Brand House, says: “It needs to be viewed as a business expense. Even raising your interest rate by 2% is a great start. Small amounts add up over time. Take care of your future self, no matter how small.”
Brand and motion designer Jamie Quantrill details how to do this in practice. “Top up as much as you can in your pension every month, whether it’s £20 or £200. Think of it as an expense and you won’t even think of it as cash to spend. If you have a bit of a surplus at the end of the year, put a larger lump sum into your pension. Even small amounts each month will compound interest over a long period of time.”
There’s no one single way to organize your pension, but here it is in a nutshell. Set up direct debit. Automate it. Make it invisible. This was a suggestion that came up repeatedly in our discussions.
Start with what you can afford
Signature writer Rachel E Millar stresses getting started as soon as possible. “For the self-employed, I think it’s very important to start collecting pensions as early as possible,” she stressed. “The government adds 25% to your investment every month and you can start from just £20 a month, which is the same as many subscriptions people pay without thinking. It adds up without me noticing and makes me feel like I’m looking after my older self.”
Irregular income? Try using the 50/30/20 rule for your monthly income: 50% for basic living expenses, 30% for discretionary spending, and 20% for savings and debt. Even if you can only manage 10% for a few months, that’s better than zero.
long term perspective
No one wants to think about getting older while they’re busy making rent. But compound interest rewards those who start early, even if the amount is small. Contributions of £50 a month from age 30 may be better than contributions of £200 a month from age 50, purely because of the extra growing time.
Research by PensionBee found that half of UK gig workers say they cannot afford to save into a pension. But “can’t afford it” often means “not a priority” or “don’t know how to start.” If you’re reading this article, you’ve already taken the first step: admitting the problem.
Step two is easier 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. As they say, others can, too.) Set up a monthly direct debit. Treat it like a phone bill: non-negotiable. Then, when you’re having a good month, top it up.
The future – you’ll be grateful. Now – you’ll probably sleep a little better knowing you’ve started.
