Self employed pension plans

If you where working self employed before 1987, you may have a s226 plan.  For solicitors and accountants, Retirement Annuity Contracts were the main option for retirement savings and many NHS GPs favoured Retirement Annuity Contracts for as a way of boosting savings from non-NHS income.

It is possible that your investment choice within the Retirement Annuity Contract is very limited – that your contributions can only be allocated to the With Profits fund.

In some cases, payment on death before retirement from a Retirement Annuity Contract is limited to a refund of the premiums paid, sometimes with interest added.  This may be considerably lower than the day-to-day value of the plan.

It might sound like you should get rid of your Retirement Annuity Contract if you have one.


If you have a Retirement Annuity Contract, your plan may contain guaranteed or enhanced annuity rates of some kind.  What’s more, we generally find that guaranteed annuity rates often go hand-in-hand with restricted investment choices and with restricted payments on death.

Despite the low growth, it is sometimes worth persevering with the policy because of its guarantees at retirement and, of course, the insurance companies who provide these are aware of those considerations.

The subject is complex and you should seek professional help.  To arrange a free consultation with a pension expert, face to face or over the phone: call 0161 928 2706 or go to our use are annuity quote service over at