As a self-employed person, you are not able to join occupational pensions schemes or build up an entitlement to the additional state pension (SERPS/State Second Pension), although you will receive the basic State Pension. It is therefore important to consider contributing to either a Stakeholder or an individual arrangement, so that you receive an income to give you security in your retirement. 

Should you wish to calculate how much your pension fund should be in order to give you the income you wish to achieve in retirement, here's a relatively simple way to find out approximately how big your retirement fund needs to be.

Taking into account all your likely living costs, calculate how much annual income you think you would need if you were to retire at age 65. Remember to allow for inflation.

Now multiply this figure by 25... this is the retirement fund you would need, based on current annuity rates to provide the income required. We call this your magic number.

Expert and professional advice, which focuses on your requirements, is of paramount importance and will be the cornerstone of your pension arrangements. Recognising this, the St. James's Place Approach to Retirement Planning is founded on four key principles:

• Advice
   
• Service
   
• Flexibility
   
• Control

If you would like to know more about the St. James's Place range of pensions, please contact us.