Pension Planning for Non-Earners

Many people assume that a personal pension plan is only available for those people who are in paid employment. Historically this was the case as there was a need to be in receipt of “net relevant earnings” in order to qualify for pension contributions.

This income had to be “earned” income – so if for example you had a large percentage of your income come from savings and investments then this “income” could not be used to calculate the maximum amount which you could invest in a personal pension plan.