The government has launched a new review into the state pension age, which is currently set at 66. Under current law, a review must take place every six years. The last one concluded in 2023, and this newly announced review is scheduled to finish in 2029.
While no changes have yet been confirmed, the review is expected to consider a range of factors including life expectancy, affordability, and long-term sustainability. Depending on the outcome, the age at which people can begin claiming their state pension could rise again in future years.
For company directors and self-employed individuals, this review is a timely reminder to take stock of your retirement plans and consider whether you’re doing enough to build a comfortable financial future.
A growing gap in pension saving
Recent figures from the Department for Work and Pensions show that more than 3 million self-employed workers in the UK are not saving into a pension. Only one in five are currently making contributions – a significant drop from 50% in the late 1990s.
This isn’t just a self-employed issue. Many company directors are also missing out on the opportunity to make efficient use of their pension allowances, especially if they’re not contributing regularly or have let pension planning fall by the wayside.
Unlike employees in automatic enrolment schemes, the responsibility to plan, contribute, and review lies firmly with you.
Why pension planning matters
Whether you’re a sole trader or running a limited company, there are clear benefits to putting a private pension strategy in place:
- Build a personal safety net that doesn’t depend on future state pension changes
- Make tax-efficient contributions through your business (if you’re a director)
- Claim tax relief on personal pension contributions (if you’re self-employed)
- Use your annual allowances to their full potential
- Improve your long-term financial security with regular, manageable contributions
With the state pension age under review, it’s more important than ever to take control of your own future.
How SMH Group can help
At SMH Group, we work with clients to provide personalised financial planning advice that fits around your goals and circumstances. We’ll help you:
- Understand what your current pension setup looks like
- Explore the best contribution method for your business or personal income
- Plan for a future that supports the lifestyle you want
It’s never too early – or too late – to start. If you’re unsure whether you’re doing enough, or want reassurance that your approach is still fit for purpose, we’re here to help. Contact us today to book a pension review.
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