The Power of Pensions: How Mums Can Secure Their Future

27 Mar

Hi MOBsters!

We hope you're having a great month! As always, Mums Who Build is here to support you on your journey to financial security. This week, we’re covering pensions and why they are a powerful tool for mums to secure their financial future.

In our latest Instagram Live, Jo Dean, an award-winning financial advisor, explained how pensions can be a tax-efficient way to save for the long term, especially for self-employed mums and business owners.

Understanding pensions can feel overwhelming, but starting early and contributing regularly can make a significant difference to your future financial stability.

1. Why Pensions Matter for Mums

Jo emphasised that a pension isn’t just about retirement—it’s about creating financial independence. Here’s why they are important:
✅ Long-term financial security – Helps you build wealth for when you stop working.
✅ Tax benefits – Contributions can reduce your taxable income.
✅ Compounding growth – Interest is calculated on accumulated interest.
✅ Flexible options – Different pension schemes cater to various financial needs.

💡 MOB Tip: Even if retirement feels far away, small, regular contributions now can have a huge impact later.

2. How Pensions Work

Jo explained that pension contributions benefit from tax relief, meaning the government adds extra money to your savings. The key options include:
✅ Workplace Pensions – If you're employed, your employer contributes a percentage of your salary.
✅ Private/Personal Pensions – Great for self-employed mums or those wanting additional retirement savings.
✅ Pensions Through Your Business – Business owners can make contributions directly from their company, which can be tax-efficient.

💡 MOB Tip: If you’re self-employed or a business owner, consider setting up a private pension to take advantage of tax relief benefits.

3. How Much Can You Contribute to a Pension?

Jo shared that pension contribution limits depend on your earnings and tax position.

You can contribute up to 100% of your earnings or £60,000 per year (whichever is lower).
Basic-rate taxpayers get 20% tax relief—so if you contribute £80, the government adds £20.
Higher-rate taxpayers can claim additional relief through Self Assessment.

💡 MOB Tip: Check if you are making the most of your annual pension allowance before the tax year ends!

4. Pensions for Business Owners

Jo highlighted that business owners can make pension contributions directly from their company, which can help reduce tax liabilities.
✅ No Corporation Tax on pension contributions.
✅ Contributions don’t count as personal income, so they are tax-efficient.
✅ Great for long-term financial planning.

💡 MOB Tip: If you own a business, consider setting up a pension as part of your tax-efficient financial strategy.

5. Can You Set Up a Pension for Your Child?

Jo shared that many parents don’t realise they can set up pensions for their children.

You can contribute up to £2,880 per year, and the government adds 20% tax relief, bringing the total to £3,600.
This money grows tax-free until the child reaches retirement age.
A great way to give your child a financial head start.

💡 MOB Tip: If you want to teach your child about long-term savings, setting up a Junior Pension can be a great tool.

6. Planning for the Future

Jo emphasised that thinking about your future finances today can make a big difference tomorrow.

Are you contributing enough to your pension?
Could you increase contributions before the tax year ends?
Have you explored tax-efficient pension strategies?

💡 MOB Tip: If you’re unsure about pension options, speaking to a financial advisor can help you create a tailored plan.

Join Our Monthly Instagram Live with Jo Dean

📅 Mums Who Build hosts a FREE monthly Instagram Live on the last Monday of each month with Jo Dean!
📲 Join us to: (the next one will be on april 25th)

Ask your finance-related questions live.
Gain expert insights into pension planning, tax efficiency, and long-term savings.
Learn how to make smart financial decisions for your future.

Final Thoughts

We hope this blog helps you understand the power of pensions and how they can secure your future. It’s never too early (or too late) to start thinking about long-term financial stability.

💬 We’d love to hear from you – Drop your thoughts in the comments below!

Who is Jo Dean?

Jo Dean is an award-winning financial advisor and was named ‘Woman of the Year, Investment Advice’. She helps clients simplify their path to financial security through personalized strategies. Her expertise covers tax mitigation, retirement & investment planning, asset protection, estate & inheritance planning, and cash & currency management.

🚀 How Jo Can Help:
Jo takes a tailored, bespoke approach to financial planning, recognizing that no two individuals share the same financial journey. Her ability to see the bigger picture and build trust with clients ensures that financial strategies align perfectly with individual aspirations.

📲 Want to connect with Jo for personalized financial guidance? Reach out to her via LinkedIn or contact her directly at jo@avantiwm.co.uk | 07972 114 038. Jo can also recommend accountants for those needing tax or accountancy support.

🚨 Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always seek professional guidance for your unique circumstances.

MOB MOBSTER