Do you splash your hard earned contract income?

[northernladuk]

I'm pretty good at saving for stuff I like the sound of. I never fritter away everything I take from the business, I always have the mentality of putting away a larger proportion.


I just then spend a lot of that proportion in one go on a house, or a holiday, or a handbag. Perhaps if 'Pension' began with an 'h' I'd be more interested.

Question just out of interest. You are pretty young, single and probably not a bad catch so does not having a pension worry you? Do you plan some of your future on the fact your circumstances will change when you meet someone and there are two of you or do you plan your future on what you can do and the rest is a bonus if and when it happens?

Am not insinuating you are planning on gold digging, just that all these pension models and savings plan often revolve around a 2 adult household rather than one person making ends meet?

[amanwhoisquiet]

I'm still in my first contract and haven't had a year in business yet, so I've no idea what i'll get hit with at the end of the year. Because of that I'm salaried low and drawing out as low as I can manage on - about as much as I was on permie. Pensions just got sorted (topping up the old one from the permie post), and plan to drop money off the house when I understand year end. Need to bag a 2nd contract yet though - only 3.5mo to go but that'll come around in notime.

[pjclarke]

Advice for bad savers.

Make a Budget.*

+1

Pensions are easy. Set up an account with HL.co.uk, set up a SIPP with them, set up a direct debit with them for monthly contributions from your Limited company in order to gain relief on your Corp Tax, have them put said contributions into tracker funds, e.g:

+1


I followed this route, mostly, been contracting 13 years, no significant gaps, fairly frugal lifestyle, not significantly different from my permie days, excepting a few 4-figure family holidays, built up a cash buffer then invested regularly into equity and bond-based SIPPS and ISAs in mine and wife's names. I pick my own shares using LTBH and HYP principles and routinely beaten 'the market', we've just joined the 2-comma club.

Currently supporting son through Uni, and when he graduates we plan to wind up the company, sell the Honda and the Toyota, downshift our property in the Peak National Park to a city apartment and 'retire'.

There's a community of bloggers who share their experiences as they work their way towards what they call FIRE (Financially Independent, Retire Early). This guy's site is full of good advice, even if he thinks that £19,973 per annum is enough to live a luxurious lifestyle (my number is at least 50% higher).

I also use a tool called You Need a Budget , recommended.

[Antman]

Question just out of interest. You are pretty young, single and probably not a bad catch so does not having a pension worry you? Do you plan some of your future on the fact your circumstances will change when you meet someone and there are two of you or do you plan your future on what you can do and the rest is a bonus if and when it happens?

Am not insinuating you are planning on gold digging, just that all these pension models and savings plan often revolve around a 2 adult household rather than one person making ends meet?

In the words of Bee "Hey you, you troublemaker with the slippery skin "

[d000hg]

Interesting to note how many have got bugger all pension.....

I can never get excited about a pension without an employer to match my contributions... I don't see how it's better than other options. With mortgage over payments, maxing out two ISAs at the new higher allowances uses all our funds and I think even £15k savings a year is far more than most people save and/or put in their pensions. The wife has a teaching pension which while no longer the gold-plated thing of former years is still better than any private pension AFAIK.

[MrMarkyMark]

In the words of Bee "Hey you, you troublemaker with the slippery skin "

[psychocandy]

I'm pretty good at saving for stuff I like the sound of. I never fritter away everything I take from the business, I always have the mentality of putting away a larger proportion.


I just then spend a lot of that proportion in one go on a house, or a holiday, or a handbag. Perhaps if 'Pension' began with an 'h' I'd be more interested.

What about shoes? ;-)

[pjclarke]

I can never get excited about a pension without an employer to match my contributions... I don't see how it's better than other options.

Tax relief. Corporation tax if paid from your LtdCo, personal income tax if not. Though if you are not using your full ISA allowance there may be no net benefit.

Plus I believe (I read it somewhere on CUK so caveat emptor) that pension contributions, once made, are exempt from confiscation under a IR35 investigation or similar.

[MaryPoppins]

Question just out of interest. You are pretty young, single and probably not a bad catch so does not having a pension worry you? Do you plan some of your future on the fact your circumstances will change when you meet someone and there are two of you or do you plan your future on what you can do and the rest is a bonus if and when it happens?

Am not insinuating you are planning on gold digging, just that all these pension models and savings plan often revolve around a 2 adult household rather than one person making ends meet?

It does worry me a bit. Which means I bury my head about it obviously! This thread is making me think a bit, mind.


I suppose until recently life has felt like a bit of a whirlwind and has given me enough of an excuse to ignore the general long term stuff. But no - I most definitely don't sit in limbo waiting to meet someone appropriate. As if!

[chopper]

Another reason for setting up some form of pension fund is that it is entirely possible that the current pension saving entitlements may well be watered down or even removed for new entrants in the future, with the Lifetime ISA being scaled up to replace it (the LISA being post tax savings rather than pre-tax savings). I doubt they'll remove pension schemes for existing members though.