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Contractor Pension Calculator - Results

[Calculations for outside IR35. Change to inside IR35.]

  • The tax man will fund up to 25% of a pension for you!
  • Your current monthly net pay is £2,596, and taxes are £591.
  • You can tax efficiently contribute up to £30,250 per year.
  • Using previous years allowances could allow you to invest up to £200,000.
  • For each £100 contributed, your take home pay only reduces by £74. The tax man pays the rest!

A tailored example for you

  • You contribute £1,000 per month for 35 years until retirement.
  • Your monthly take home pay will only reduce by £749.
  • If you retire aged 65 your total contributions will have been £420,000, costing you only £314,685 due to the tax reliefs available on contributions.
  • Assuming a 5% annual return on your investment, your pension pot will have grown to £1,138,035. You can withdraw a 25% tax free lump sum of £284,508. In effect you receive back 90% of the take home pay invested and have the remaining £853,526 invested to produce a future income stream.

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Through our chosen partners we have been providing specialist advice for contractors since 2004. More info

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ContractorCalculator are introducers to Contractor Private Office.