The only cap on how much you can invest is the lifetime allowance at £1.2m and the annual allowance at £40,000. If you have a lump sum to invest then make sure that you have done so in plenty of time of your company year-end to avoid paying tax on any over payment. 

 

Whilst the unbeatable tax breaks associated with pension investment have been around for more than a decade now, the rigid nature of how you access the funds in retirement has undeniably been a stumbling block for some Freelancers. 

 

Since the 2014 Budget, you will be able to exploit the upfront tax benefits, grow a fund tax efficiently, but then have access to the bulk of the fund at or during retirement. For the first time, you could withdraw the whole of your pension fund at age 55 and you are no longer confined to purchasing an annuity at age 75 so there is potential for you to continue taking on part time contracts or similar well past retirement age to supplement your income.