With guest writer Gary Millard
If you’re a musician or creative, this is the most BENEFICIAL AND PIVOTAL SECRET to a long and prosperous career.
Some months are great. Others are… not. Income can come from gigs, touring, teaching, tik-tok, tips, royalties, side projects: sometimes in one chunk, sometimes
not nearly often enough.
That’s where financial planning comes in – to give you options later on.
IT’S IMPORTANT TO NOTE THIS IS INFORMAL INFORMATION AND NOT FINANCIAL ADVICE
THIS ARTICLE IS DESIGNED TO GIVE YOU AN OVERVIEW OF WHY A PENSION IS SO IMPORTANT.
IF YOU ARE INTERESTED WE CAN DIRECT YOU TOWARDS THE RIGHT PEOPLE TO EXPLAIN FURTHER.
What is a pension? How does it work?
A pot of money that you contribute to over time, which can be accessed later in life, but not before age 55 (which may increase in the future).
Conceptually, at the time to withdraw, you live off the interest and not the bulk amount – it’s like a savings account on steroids! You save, the government tops it up!
What is compound interest/how does the pension grow?
Compounding is a concept of where a seed amount (e.g. £100.00) with regular/irregular contributions over time (e.g. £25 per month/a bulk amount per year) receives interest, thereby (hopefully) growing exponentially until withdrawal.
Please Note: Pension values can go up as well as down. Past performance is not
indicative of potential future growth.
Why pensions actually matter
A pension isn’t about stopping work at a certain age. For most musicians, it’s about choice. There may come a point where touring, late nights or chasing work feels like a bit too much like hard work.
A pension helps make sure you’re not forced to keep going purely to pay the bills. They’re also one of the most tax-efficient ways to save. When you contribute, the government adds tax relief, which gives your money an instant boost. And importantly, pensions are flexible: you don’t have to pay in every month!
Growing a pension without locking yourself in
Your pension isn’t just a savings pot; it’s invested for long-term growth. That means time (and patience) is more important than timing. Many musicians contribute lump sums after a strong year, a tour, or a decent royalty payment rather than setting rigid monthly amounts. That said, little and often is better than never.
What matters most is checking in occasionally and making sure your pension still matches your situation: your goals, your risk tolerance, and how far away retirement actually is.
What pension options are out there?
There are many options on the market for self-employed musicians, it’s important that you consider any options carefully.
The Creative Arts Pension Scheme (often referred to as the Musician’s Union Pension) is a great option for musicians and other creatives who want flexibility and clarity from their pension.
What else should musicians be thinking about?
Pensions are important, but they shouldn’t do everything. ISAs can be useful for money you might want access to sooner.
Cash savings matter more than people realise when income isn’t predictable (or the tax man comes knocking), and protecting your income is often overlooked – but if your ability to earn depends on you being able to play, it’s worth thinking about.
Good financial planning for musicians isn’t about rules or spreadsheets. It’s about building a setup that works around your career, not against it.
What’s next?
You can find a range of useful information by following the link below but if you have questions or would like to discuss your wider financial planning, you can always contact Gary Millard at the Creative Arts Pension Scheme.
He’s a passionate musician himself whose “serve the song” attitude carries over into his professional life.
Creative Arts Pension Scheme – Engagement
Contact Gary Millard