Self employed sole trader looking to build at least a 20k Pension Fund

System

This discussion was created from comments split from: Are you ever too old to start a pension?.

Wax_Em

I am also looking at pension .. ive just gone 59.. self employed Sole trader looking to build at least a 20k Pension Fund for when i have to retire from car detailing.. where do I start ? 🙄

LHW99

Wax_Em said:

I am also looking at pension .. ive just gone 59.. self employed Sole trader looking to build at least a 20k Pension Fund for when i have to retire from car detailing.. where do I start ? 🙄

You may be best to start a new thread here - otherwise you may get mixed up with answers to the original poster. Look for the red box at the top right that says "+ Create new".

There is another recent thread that might be of interest:

https://forums.moneysavingexpert.com/discussion/6642204/pension-types-and-where-to-start#latest

Marcon

Wax_Em said:

I am also looking at pension .. ive just gone 59.. self employed Sole trader looking to build at least a 20k Pension Fund for when i have to retire from car detailing.. where do I start ? 🙄

OP - I've asked for this to be split so your post creates a new thread (you don't need to do anything).

In the meantime this should make useful reading: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics

Grumpy_chap

Wax_Em said:

I am also looking at pension .. ive just gone 59.. self employed Sole trader looking to build at least a 20k Pension Fund for when i have to retire from car detailing.. where do I start ? 🙄

I assume by "20k pension fund" you mean a pension that provides £20k per year, not a total pension fund of £20k?

What pension provision do you already have from any previous employment?

SVaz

You need approx £700k to enable a £20k per year retirement income.
That equates to £1500 gross ( £1200 net for a 20% tax payer) per month for 20 years into a pension returning 7% average yearly growth. 

LHW99

SVaz said:

You need approx £700k to enable a £20k per year retirement income.
That equates to £1500 gross ( £1200 net for a 20% tax payer) per month for 20 years into a pension returning 7% average yearly growth. 

Although hopefully if you are wanting a £20k pa retirement income you will only have to meet the gap between state pension and £20k - so a pot that could support ~£8k pa - maybe £250k total.

Have you checked you are on course for a full state pension?

https://www.gov.uk/check-state-pension

SVaz

Oh, I’ve just seen OP’s age of 59. 

Ignore my maths then.
If a £20k total pot is what’s required,  what’s the time frame?  3 years? 5? 

Assuming 5 years then £266 a month into a pension will gross up to £4000 a year with tax relief,  which will give £20k plus a bit of cash interest.