In today’s working world, many people no longer fit neatly into one category. You might be a part-time pay as you earn (PAYE) employee and a freelancer. Or perhaps you run your own business while picking up contracting or consulting work.
This approach to earning offers freedom, flexibility, and diverse income streams - but it can also make retirement planning feel like a minefield.
So, whether you’re freelancing, running a side hustle, or working multiple roles - here’s how to take control of your pension and make every pound count.
Check if you qualify for Auto-Enrolment
If you’re on a payroll for part-time roles, check if you’re eligible for Auto-Enrolment. Since 2012, Auto-Enrolment has meant that all employers must offer a workplace pension and contribute a minimum of 3% of your ‘qualifying earnings’ (your earnings between £6,240 and £50,270) if you:
- work in the UK;
- earn more than £10,000 a year from a single employer;
- are at least 22 years old and haven’t yet reached State Pension age (66 rising to 67 from 2028);
- aren’t already a member of a suitable workplace pension.
If you’re under the threshold but earn at least £6,240, you can ask to be enrolled - and your employer can’t refuse. Depending on how much you pay in yourself, they may offer to match your contributions too.
Consolidate old pensions to get the full picture
If you’ve had a few PAYE jobs, you may have left some pension pots behind. Consolidating these gives you better visibility into where and how your money is being invested. Plus, it can help reduce any charges you’re paying across providers that could be eating into your long-term savings.
If you aren’t sure where to start, there are services that can help you track down and combine your pensions. You can use the government’s free Pension Tracing Service to gather any details you need. And with providers like PensionBee, you can combine any old pots into one easy-to-manage online plan in a few steps. They just need a few details to get started like your old provider name and a policy number if you have it.
Not sure if you have old pensions or where they are? Check out this blog from PensionBee.
Consider paying into a personal pension
Even if you’re saving into a workplace pension via a PAYE job, you can still open a private pension and make contributions from any freelance or contract work you do.
Having a dedicated one for your non-salaried income helps you avoid relying solely on workplace schemes - and gives you more flexibility in retirement planning.
With PensionBee, you can set up a self-employed pension within minutes and not be tied to minimum contributions. Simply pay what you can, as often as you can.
Don’t forget about the benefits of tax relief
One of the key benefits of paying into a pension is tax relief. Even if you don’t have a PAYE job and instead work different freelance gigs, you may still be eligible for tax relief. Here’s how it works.
Most UK taxpayers get tax relief on their pension contributions, which means that the government effectively adds money to your pension pot. Usually basic rate taxpayers get a 25% tax top up; meaning HMRC adds £25 for every £100 you pay into your pension making it £125. Higher and additional rate taxpayers can claim further through their Self-Assessment tax returns.
If you’re the director of a limited company, you can make employer contributions to your pension. These can be treated as an allowable business expense – therefore taken off your year-end profits, helping you save on corporation tax. You’ll also get National Insurance (NI) relief, as the contributions come from your pre-tax income.
Understand your allowance - and use it wisely
The current annual pension allowance - the amount you can contribute and still receive tax relief on - is up to 100% of your earnings, capped at £60,000 (2025/26).
When you’re earning from different sources (for example £30,000 PAYE and £15,000 freelance), your total pension contribution limit is based on your total income (£45,000 in this case).
However, remember you can also carry forward unused allowances from the previous three tax years. This means you can make bigger contributions to your pension, which could be useful if you receive a big pay rise or a lucrative freelance contract. The table below shows the annual allowance for the current tax year (2025/26) plus the previous three tax years.
| Year | Amount |
|---|---|
| Annual allowance 2025/26 | £60,000 |
| Annual allowance 2024/25 | £60,000 |
| Annual allowance 2023/24 | £60,000 |
| Annual allowance 2022/23 | £40,000 |
Watch this video to learn more about using the carry forward rule.
Use tech to stay on top of things
Managing a few different income streams is hard enough - pension saving shouldn’t be. Use tech and automation where you can to help you keep track of everything. Scheduling a 15 minute check in with yourself each month can help prevent headaches down the line.
Look for tools that give you real-time access to your balance and are available on mobile or via an app. However, you should always check whether the app provider is authorised before giving it access to your accounts - you can do so on the Financial Conduct Authority (FCA) register or the Open Banking register.
Freelancing and juggling jobs can be exciting and lucrative, but it can also mean rapid changes. It’s easy to overlook long-term planning, but with a few smart moves you can keep on top of your pension saving while managing different jobs and income streams.
Listen to this bonus episode of The Pension Confident Podcast for more tips on automating your finances. Listen to the full episode or read the transcript.
Nilesh Pandey is a Freelance Writer who’s been trusted by businesses and entrepreneurs across the globe. Over the last decade, he’s worked with companies in industries such as tech, private equity and pharmaceuticals, while seeing his words appear in national newspapers and international speeches. Nilesh is also a regular Writer for Your Business magazine.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
