Pensions and fixed-term contracts

Pensions and fixed-term contracts

Do you work on fixed-term contracts? If so, you might be curious about how pensions and fixed-term contracts function. After all, you are not in permanent, ongoing employment. You are only working until you reach a specified end date, hence the fixed-term aspect of the work. As a result, you could be wondering if you receive pension contributions in the same way as a regular workplace employee.

This blog post will help to answer that question, along with different aspects you have to consider with pensions for contract workers.

Pensions and fixed-term contracts: how do they work?

When you work on a fixed-term contract, you are not necessarily placed into a pension scheme. There are certain elements you need to meet before that is achieved. The main elements are your age and how much you earn.

As of right now, the age threshold begins at 22 years old and goes up to the State Pension age. In terms of how much you earn, an employer has to place you into a pension scheme – and contribute to this themselves – if you make over £833 a month or £192 a week. When you meet both of these points, you will receive pension contributions from your employer.

However, due to the nature of fixed-term contracts, you are likely to work across different industries and businesses. This can make managing and following your pensions a difficult task. At least, that is if you don’t know what to do.

How to deal with multiple pensions and fixed-term contracts

Have you worked on numerous fixed-term contracts over the years? Perhaps these have been interspersed with regular employment positions? This type of situation results in multiple pension pots being built up. While this is great in that you have savings for your retirement, these pots being separate is far from ideal.

Fortunately, it is possible to consolidate these pension pots without too many issues. In fact, with the help of iSIPP, we can take all of your pension pots, combine them, and ensure you only have to look in one place at your pension.

pensions and fixed-term contracts

The benefits of combining your pension pots

As mentioned, pensions for contractors and those on fixed-term contracts can be spread out across different places. They will be enrolled into separate pension schemes where they have built up pots during their time of employment. However, there are various benefits gained from combining all of these pensions into a single pot.

Easier to track your pension savings

Understandably, one of the biggest benefits is that it’s much easier to track your pension savings. You know exactly how much you have saved, including the type of interest it could benefit from. Furthermore, consolidating can also uncover pension pots that have become lost or forgotten over time.

Quick to monitor your pension

Imagine how long it would take to check multiple pension pots. It’s not a quick process, that is for sure. By consolidating your pensions, you only have to visit one place to learn about the current state of your savings.

Lower charges

Did you know that each pension plan receives certain fees? Well, if you have multiple plans, you have to deal with multiple charges. When you consolidate your pensions into a single pot, naturally, you only have to deal with a single set of fees. Due to this, you will typically save money and maximise your investment returns.

More investment opportunities

Once you have your pension savings in a single place, more opportunities can open up in terms of investment possibilities. This is particularly the case if you manage your account with iSIPP. You can easily browse through the different investment funds available, selecting the one – or ones – best suited to your needs.

Pensions for contractors from iSIPP

For people on fixed-term contracts or those who have had several fixed-term contracts, managing multiple pension pots can be challenging. iSIPP offers a solution by allowing you to combine all of your pension pots into one, making it easier to manage your retirement savings. With iSIPP, you have the flexibility to choose where your money is invested, ensuring your investments align with your long-term goals. Additionally, iSIPP’s online portal provides easy access to your pension details, giving you the ability to monitor your account and make changes as needed. With iSIPP, you can simplify your retirement planning and take control of your financial future, even if you have had several fixed-term contracts.

You might also like:

Pensions for contractors

Pension tax relief for the self-employed and contractors

Self-employment and job changes are driving pension cuts




The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

This notice cannot disclose all the risks associated with the products we make available to you. When making your own investment decisions it is important you understand that all investments can fall as well as rise in value and it is possible you may get back less than what you have paid in. You should also be satisfied that any investments you choose are suitable for you in the light of your circumstances and financial position. You should seek financial advice if you are not sure of what’s best for your situation.


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