Pension

A long-term savings scheme that invests money to provide income in retirement, founders can access tax relief of 20-45% on contributions, making pensions one of the most tax-efficient investments available.

Many self-employed founders neglect pension planning because there is no employer forcing contributions. Starting early, even with small amounts, has an outsized impact due to compound growth.

A founder contributes £500/month to a SIPP. The government adds 20% tax relief, making her actual cost £400/month. Over 25 years, this builds a substantial retirement fund.