This article, on getting a good income from contracting, was posted as Comments after one of our articles.
I closed my company in 2001 (age 59) because I took my pension from Equitable life just before they reduced the annuity. (I was a GAR at over 10%.
So, I now have an income of about £35k which is plenty. I always paid NI on a salary which was reasonable (So I get over £200 a week OAP).
At the time I was still able to get Cash out of the company for my retirement. Don’t think you can now.
I did a couple more contracts using an umbrella company.
Here is my advice:
– Save some money in an investment ISA. Spread your investments across different classes and countries. Move them if not performing well.
– Get a SIPP, and do the same thing.
– Read all about pensions.
– You won’t need as much money as you earned while working (assuming it was £50 – 100k) You should have paid off your mortgage.
– The stock markets – you have to select the right shares /funds/countries.
– Finally It might be a good idea to get some gold and silver, because some people expect a huge crash soon!
IT Contractor Comment
This is good advice and well worth taking.
This is from a contractor who managed to get out of it with a big pile of cash and investments.
It’s always nice to see freelancers who manage to make their money and get out.
There are so many contractors who thought that with their new found wealth they would be retiring in just a few years.
Many years later they are still contracting.
It’s easier said than done.
If you can get a good income when you retire from contracting, that’s great.
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