Case Study: Securing the future of a self-employed barrister


The challenge


As a self-employed barrister Mr J, aged 33, had a hectic work schedule, with little time to think about his own personal finances.


Having set up the business two years ago, he was busy building up a pot of money for the company and didn’t have time to make sure the right personal protections were in place to support his wife and young children. It was important to Mr J that he knew how to maintain a good standard of living.


The solution


Mr J came to Banner Jones Wealth Management for a review of his financial situation, including his pension contributions and any protections he might already have in place.


During an initial meeting, we were able to talk through his aims for the future and whether he was taking any risks that could impact his plans.


We identified that his earning potential after costs was subject to personal income tax. By putting money into a personal pension pot, he could reduce the amount of tax he was paying. We also worked with him to establish the level of risk that he was comfortable taking and create a strategy in line with the outcome


We advised Mr J to take out several protections to secure the future of his business and to be able to look after his family.


The benefit


By starting to make personal pension contributions, Mr J was able to reduce the amount of tax he was paying. Our plan also ensured he had critical illness cover and life cover in place to secure his family’s future.


With ongoing review meetings at Banner Jones Wealth Management, we can ensure that Mr J’s pension contributions remain suitable, considering any future changes to his circumstances and legislation.


Suzanne Jeakins, financial planner, said: Saving into a pension can be a difficult habit to get into for people who are self-employed compared to those in employment. There isn’t anyone to choose a pension scheme on their behalf and they don’t get employer contributions. They are also more likely to have irregular income patterns which can make saving difficult. Therefore, preparing for retirement is crucial for those who are self-employed. The earlier they start saving into a pension pot the better.”