Everything actors need to know about retirement savings.
Updated: 16 July 2026
When you’re starting your acting career, retirement is probably at the back of your mind. Finding an agent, preparing for auditions and keeping your Spotlight up-to-date seem more urgent.
Typically, actors are driven by a passion for their craft rather than monetary gain. Early on, your focus may be on establishing yourself in the industry and retirement can seem a long time off. But the later you leave it to start saving for retirement, the more burdensome it can become.
It’s estimated that just 31% of self-employed people in the UK have any pension savings. In 2023, a study by Equity and the University of Warwick revealed that 94% of creatives earn less than the median average salary. It could be argued that this makes things tougher for actors, but it also highlights the importance of starting to save as soon as possible.
In this guide, you’ll learn about:
- Starting early: Creative incomes fluctuate, making early and consistent savings crucial to building a secure retirement pot.
- The State Pension gap: The State Pension (£241.30/week) requires 35 years of contributions and is rarely enough to live on alone.
- Free contract money: Opt into the Equity Pension Scheme to get valuable employer contributions on union-covered jobs.
- Tax relief top-ups: You can’t claim pensions as business expenses; instead, the government automatically adds a 20% tax top-up to your contributions.
Here is how you can set up a pension as an actor, how much to save and what options are available to you:
How Do Actors Get a Pension?
Most people in the UK are eligible for the state pension when they reach retirement age. Provided you’ve paid National Insurance (NI) contributions for at least 10 years, you should be entitled to some state pension. To receive the full new state pension of £241.30 per week, you’ll need to have paid NI contributions for at least 35 years.
The retirement age is rising incrementally, so you’ll need to check gov.uk to find out when you can start drawing from your pension. Keep in mind that the age at which you can access private pensions is also rising from 55 to 57 starting in 2028.
It’s widely accepted that the state pension doesn’t provide enough to live on in later life – particularly if you have grand plans for retirement. So, it’s best to make separate provisions. For employees on PAYE, this is a workplace pension. Self-employed people, including performers, don’t have this luxury.
In 1997, Equity launched its own pension plan (the Equity Pension Scheme, currently run by Aviva) for its members. For some actors working under contract with production companies, including (but not limited to) the BBC, ITV, Disney and UK Theatre, you can get the company to pay employer contributions to top up your own. This isn’t standard across the industry, so don’t expect it, but if it’s offered, please take advantage.
You’re not automatically entered into the scheme when you join Equity and must opt in if you want to join the scheme.
Can I Pay into a Pension If I’m Self-Employed as an Actor?
The pension options for freelance actors are the same as those for any other self-employed person. One of the benefits of self-employed pensions is that you have the freedom to choose how you plan for retirement.
There are two main options:
1. Personal Pension
Most major pension providers offer a range of products like stakeholder pensions, for example. With a stakeholder pension, you usually choose which plan you want to invest in based on factors such as your level of risk appetite and the potential value of the plan.
A fund manager invests your contributions as part of a bulk fund with the intention of maximising returns. You don’t need any market knowledge and personal pensions are generally seen as the safest plans for those who prioritise security over high returns.
However, no investment is 100% risk-free and you need to be aware that the value of your pension can go down. For safety, most people choose a leading provider with a solid reputation.
2. Self-Invested Pension Plan (SIPP)
A SIPP is really a pension option for those with a bit more knowledge of financial markets and an appetite for risk. Fundamentally, SIPPs work just like personal pensions, but you have greater control over where your money is invested.
Rewards can be greater, but your pension pot is more volatile and charges are usually higher. If you’re considering a SIPP, it’s best to contact a financial advisor for bespoke advice according to your circumstances.
It’s not as risky as investing in stocks and shares or crypto. But if you choose to go down this route without the help of a regulated financial advisor, your investment is less likely to be protected if anything goes wrong.
How Much Do I Need to Save for Retirement?
This is dependent on your personal circumstances and retirement plans. The closer you are to retirement, the clearer you’ll be on how much you’ll need. If you expect to pay off your mortgage and then work for, say, 10 more years to top up your pension pot, you might not need to pay in so much in the early days. Although it’s worth noting that life doesn’t always follow your script and it’s safer to err on the side of caution.
If you’re renting or your mortgage term takes you nearer retirement age, you might prefer to pay in more now and build your desired pension pot throughout your working life. This will help prevent panic from setting in as you near the end of your working life.
Also, remember that you won’t get the benefit of employer contributions to top up your pension pot, so it’s all up to you. The ‘half-your-age’ rule is a good guide to how much you need to invest in your pension each month:
Take the age at which you start paying into a pension and halve it. This is the percentage of your pre-tax income you should pay into your pension.
So, if you start building your pension pot at 30, you should be paying 15%. If you start at 50, you’ll need to pay closer to 25%. As you can see, the later you leave it, the greater the impact on your monthly budget.
Calculating How Much to Pay into Your Pension if You Stopped Working to Study
If acting is not your first job and you’ve paid into previous company pensions, work out when you first started making contributions. However, if you haven’t paid into a pension scheme while studying, you’ll need to factor that in.
For example, let’s imagine you worked full-time and paid into a pension from the age of 18 and started drama school at 21. You’ve already started saving towards retirement and according to the ‘half your age’ rule, you’ll need to make minimum pension contributions of 9% of your earnings per month.
However, you made no contributions between the ages of 21 and 24. To ensure you pay enough into your retirement pot, you’ll need to account for those three years. So, for the purpose of calculating your pension contributions, extend your starting age by three years. This means your effective starting age is 21 (18 + 3).
If you worked part-time while studying and paid into a pension, pro rata your maths to fit your specific circumstances.
Tax Relief for Self-Employed Pensions
With a few exceptions, personal pension contributions are not taxed. However, you cannot deduct your pension contributions as a business expense on your Self-Assessment tax return to lower your sole trader profits.
Instead, you pay into your pension out of your post-tax personal income. Your pension provider then automatically claims 20% basic-rate tax relief from the government and adds it directly to your pension pot (known as “Relief at Source”).
If you are a higher-rate (40%) or additional-rate (45%) taxpayer, you can claim back the extra 20% or 25% tax relief through your annual Self-Assessment tax return. You can claim this tax relief on contributions of up to 100% of your annual earnings, capped at a maximum of £60,000 per tax year across all of your pension pots.
How to Set Up a Pension as a Freelance Actor
Follow these steps to set up your pension as a self-employed actor:
- Decide when you want to retire. Some people like the idea of sacrificing luxuries throughout their working life with the idea of retiring early, while others opt to save less and work for longer.
- Decide how much you want to receive each year in retirement. Are you looking for a relaxing retirement, or do you see it as your chance to travel the world? Don’t automatically assume you need the same monthly income in retirement. If your living costs are lower (for example, you own your house or downsize), a lower monthly income could give you the same amount to spend on the things you enjoy.
- Do the maths. Work out what savings (if any) you already have and calculate how much you need to contribute each month. You can estimate your retirement projections using the interactive calculator below.
- Make a realistic judgement on whether what you can afford will lead to what you want. Don’t try to fool yourself. If the maths doesn’t add up, the worst thing you can do is bury your head in the sand and pretend that it does. If needs be, adjust your plan to match your circumstances.
When planning so far ahead, you’re dealing with several unknowns. You might land that big role and put yourself in a position where you can afford to increase your pension contributions.
As an actor, you’re entering a career you love and you may not want to call it a day when you reach retirement age. The important thing is to review your pension arrangements and overall financial situation annually. If you need to change your contributions or your lifestyle, be pragmatic.
Equally, if you have a decent pension pot but decide you don’t want to stop working, you’re under no obligation to do so. Planning for your pension while still young is a way of giving yourself the widest range of options when you’re able to retire.
At the start of your acting career, balancing pension contributions with other financial priorities is a juggling act. It’s equally important to build an emergency fund of around three to six months of living expenses.
Once you have that safety net in place, try to allocate your savings between short-term goals (like saving for new headshots or acting classes) and long-term pension contributions. Small, regular contributions to your pension add up over time and will start to build towards your retirement income.
Don’t feel discouraged if you can’t put away as much as you’d like right away. Pay what you can comfortably afford into your pension and increase contributions as your situation changes.
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