nsmith1180:
eagerbeaver:
But as said, pension, holidays and sick pay etc, bring it broadly in line with a decent PAYE employment.I take your point about sick pay and holiday pay, (though my holidays will still pay, just not as much) but I argue the point on pensions.
If you run a older wagon owned outright then as an average you will have more income with which to provide for retirement. If you own a vehicle less than three years old you will have an asset that can be sold for around fifty grand. Plus the value of the business, etc and again you should been fairly comfortable in retirement.
Now let’s look a a pension based on income of £30k a year.
Let’s say you are a good boy and do more than the 1% auto enrolment figure. Let’s say you do 3% of your income.
That’s £900 a year which the boss will match, so £1800 in per worked year. Now most people don’t get serious about pensions until after 30, so let’s again assume you are a good boy and start saving on your 30th birthday. That gives you 38 years to squirrel away as much as you can.
That gives you a pension pot of £68400 at retirement age. I know there is likely to be investment income, but there is both economic inflation to deal with and tech inflation so its unlikely that your pot will be worth more than you put in in real terms.
Average life expectancy is about 92 years so you have to make that money last 24 years at least. That gives you a pension of £2850 a year, or £54 a week.
If you want to retire on £500 a week, to support a retirement of comfort, with a nice cruise every couple of years, perhaps take the grandkids to Disney, you need to have over £600k in the pot at retirement. That means saving £157.89 a week. Based on £30k a year thats 27% of income.
The way I look at it I have a better chance of building a million pound business than I do of a half million pound pension pot.
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I am the FACT that your wrong on the pension pot Smithy:
SIPP started 2009 £17k lump sum added another £10k 2011.
Been adding £125month (topped up by Gov another £25month) total £150month since 2011.
“Pot” now SIX yrs later sitting just over £80k and another 8yrs to go to the magic 60yrs whereby I shall take my 25% tax free lump sum and blow the rest on FAST living over next 10yrs!!![emoji41] [emoji108] [emoji106]
Have another nice wee public sector deferred pension to kick in@ 60yrs too so hope to be classed as “comfortable” in the “disposable income” stakes by then!!![emoji6]
Not forgetting the State pension of approx £145/week kicking in when 67yrs but hope to be lying “calved” on Spanish beach by then!!![emoji2]
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