Pension calculator for the self-employed

Are you self-employed? Do you have a personal pension? Perhaps you are planning to set up a pension in the near future? Whatever situation you are in, there is one tool that can help with your current and future planning: a pension calculator for the self-employed.

What is a pension calculator?

As you may gather from the name, a pension calculator is used to estimate the amount of retirement income you will end up with once you reach retirement age. This helps you to understand the amount of money you will need to contribute regularly to reach your retirement goals.

A pension calculator for the self-employed is particularly important. As the self-employed typically have a private pension, it is their responsibility to make contributions. They will decide on both the size and regularity of these contributions. As a result, a calculator can help them decide how much money they will need to invest in their pension.

Using the iSIPP pre-retirement calculator

Fortunately, you don’t have to go far to locate a pension calculator. At iSIPP, we have a pre-retirement calculator that is easy to use.

You can find it by visiting the following link: iSIPP pre-retirement calculator.

To use the calculator, you only have to input two criteria: your current age and the transfer amount. That’s it. With this information, you can learn more about your estimated retirement fund.

For instance, say you are 35 years of age, and you have £60,000 to transfer into your pension. The calculator takes both of these figures, incorporates an expected growth rate of 5%, and uses this calculation to come up with an estimation for your retirement fund. In this case, it would be £143,000.

Keep in mind the calculator is only to be used for general information. The growth rate of 5% could be lower or bigger, which means you shouldn’t take the calculation as fact.

The benefits of the self-employed using a pension calculator

A pension calculator can be a great help for the self-employed. Exploring the benefits below can show you just how much:

Teaches you

It’s not just about working out how much potential interest you can gain on the money you plan to transfer. It teaches you a lot more about your pension plans and how much you will need to pay into your pension.

As an example, say the iSIPP pre-retirement calculator reveals that your retirement fund will sit at £50,000. If you decide this isn’t enough, you can then start working out how much you need to start putting into your pension pot each week or month.

Removes guessing

A pension calculator also removes guessing from the equation. It is true: the calculator is only an estimation. Your investments can both drop or rise in value, as there are various factors that can come into the equation – and no calculator can predict or incorporate these factors. However, it does provide you with a general idea about what you need to do to ensure your pension pot is at the desired level once you stop working.

This aspect is particularly advantageous for the self-employed, freelancers, and contractors. They typically cannot rely on an employer to handle their pension payments for them. This is something they have to take charge of on their own. Due to this, it is their responsibility to decide how much to contribute to their pension pot on a regular basis.

Gives a goal

Another positive of a pension calculator is that it gives you an overall goal to aim towards. After performing your calculations, you have a better understanding of how much to save to achieve your target – or targets – for your personal pension.

Conclusion

In conclusion, the iSIPP pension calculator for the self-employed is an excellent tool to help individuals plan for their retirement. With its user-friendly interface and customisable inputs, it provides accurate estimates of how much money self-employed individuals need to save for a comfortable retirement. By using this calculator, individuals can take control of their retirement planning and make informed decisions about their future.

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Disclaimer 

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

This notice cannot disclose all the risks associated with the products we make available to you. When making your own investment decisions it is important you understand that all investments can fall as well as rise in value and it is possible you may get back less than what you have paid in. You should also be satisfied that any investments you choose are suitable for you in the light of your circumstances and financial position. You should seek financial advice if you are not sure of what’s best for your situation.