Pensions 101: Why It’s Worth Starting Earlier Than You Think

If you work in music whether you’re an artist, freelancer, producer, engineer or crew retirement can feel a very long way off. When income can be irregular, it’s understandable that pensions often drop down the priority list.

But starting earlier than you think can make a huge difference.

Why start early?

The biggest advantage is time.

Money in a pension doesn’t just sit there. It can be invested, which means it has the potential to grow over the long term.

Think of it like a snowball rolling downhill. The earlier you start, the more time it has to gather snow and grow.

Leave it too late, and you can still build something worthwhile but you’ve got a much shorter hill.

That’s why someone who starts modestly in their 20s or 30s can often end up in a stronger position than someone who waits until later and tries to catch up with larger contributions.

Starting early usually means less pressure, less panic and smaller amounts over time.

Why it matters in music

Many people in the music industry don’t have:

• A traditional final salary pension
• Generous employer contributions
• A guaranteed retirement plan through work

That means building your own pension can be one of the smartest long-term moves you make.

The earlier you start, the more options future-you is likely to have.

Tax relief: the hidden boost

One of the biggest benefits of pensions is tax relief.

In simple terms, the government usually adds money to eligible contributions.

For many basic-rate taxpayers, putting £100 into a pension may only cost you £80.

If you’re self-employed or earning more in stronger years, pensions can become even more valuable from a tax-planning perspective.

If you operate through a limited company, pension contributions can often be very tax-efficient, potentially reducing corporation tax and avoiding National Insurance on the contribution itself.

What if income is unpredictable?

That’s common in music careers.

The good news is pensions can often be flexible.

You might choose:

• A small monthly direct debit (even £50 can be a start)
• Occasional lump sums after better months
• Annual contributions in stronger years
• Company contributions if you trade through a limited company

It doesn’t have to be all or nothing.

The bigger risk is waiting

A lot of people assume they’ll sort pensions “later” when life is calmer or income is higher.

Sometimes that happens.

Often life just stays busy.

And waiting can be expensive.

As a simple example, £100 per month invested from age 20 to 68, growing at 5% a year after charges, could build to around £230,000.

Wait until age 45, and to aim for the same pot by age 68 you may need to contribute around £460 per month instead.

That’s the power of time more than the power of huge contributions.

Even small amounts now can be more valuable than big intentions later.

The bottom line

You don’t need to be wealthy or perfectly organised to start a pension.

You just need to start the snowball.

Small, consistent action now can make a far bigger difference than most people realise.

You can set one up yourself, but it’s important to choose investments that match your attitude to risk and goals.

If you’d like help understanding your options or setting up the right pension for your situation, you can book a call with Chrissy here.

‍

A pension is a long-term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates, and tax legislation.

Approved by 2plan wealth management Ltd on 05/05/2026

‍

‍