What comes to your mind when you hear the word ‘retirement’?
Travelling the world? Finally building your dream home? Or maybe just enjoying your grandkids and a slower pace of life once you’ve finally stopped grafting?
Regardless of what you hope your retirement will look like, let’s get one thing straight. Despite how difficult it might seem to picture yourself at retirement age, as the old timers always say, “it goes by in a flash.”
So, let’s take a moment to transport into the future. You’re older, wiser, and ideally – richer. Pour out a brew and let’s time travel!
As a self-employed tradesman or woman, you’ll be aware by now that you aren’t going to get a workplace pension. This won’t be news to you – as you don’t have any employer to make pension contributions on your behalf. You chose the self-employed life, so this is just one of the bitter pills to swallow along with your morning brew!
However, you’re still entitled to the state pension, provided you’ve got 35 years of qualifying National Insurance contributions. Great! Hang on a minute, though. As of April 2025, the UK new State Pension is £230.25 per week, which equates to £11,975.60 per year. It will be adjusted for inflation by the time your retirement rolls around, but still, it doesn’t really seem like much, does it?
This means that savvy tradespeople should look at starting a private pension. Rhino aren’t in the business of giving pension planning advice, but we do know that there a few big names out there like Nest (backed by the UK government) and PensionBee. As a self-employed tradesperson, you can get tax relief on every contribution up to the basic income tax rate of 20%. So, for example, if you pay in £80 to your private pension, the Government will top it up by £20, making the total amount in your pension pot a nice round hundred. And if you’re a higher taxpayer, you then get further relief through your annual Self-Assessment, instead of it going to the taxman.
Remember, growing your pension is a marathon, not a sprint. Regular contributions are key – and if you’re consistent and pay as much as you can afford, you’ll see your pension pot bubbling over as you reach the end of your career.
But when exactly will that be?
In the old days, (that is, until 2018), most people retired at 65. Some people preferred to toil longer, which was a personal choice, and no doubt based on their health, family commitments and finances.
But, by law, you could start to draw your pension at that age. (Interestingly, women could draw their state pension at 60 before 2010, until it was phased up to align with men’s retirement age).
From 2026, the retirement age for both men and women will be 67. What do you think? If you keep your health in check and your mind sharp, will you be running rings around the apprentices at the ripe age of 67?
As part of our 2024 Survey, Rhino asked 512 anonymous Rhino customers a variety of questions, such as:
Have you ever had your tools stolen?
Which trade do you think has it easiest?
Have you ever been called up for Jury Duty?
What are your biggest concerns when it comes to your business?
And, the reason you're here, at what age do you think you'll be able to retire? Here’s what they said:
Under 40
A tiny fraction of the tradespeople we asked thought they’d be retiring before they hit the big 4-0. Maybe these three mysterious Rhino customers have started up profitable businesses with a whole crew under them and an Ops Manager keeping things running. Or maybe they have other investments on the side – whether it’s buy-to-let properties or something else. We don’t know – but we love the confidence.
40-49
A further ambitious five tradespeople feel they’ll hang up their tools before turning 50. This is an early retirement age for a tradesperson, unless something very unfortunate like an injury or illness forces you out of the game. Concentrating on the positives, we could have more shrewd businesspeople here who are already turning a great profit and benefiting from a team under them. Some people might want to retrain after spending a couple of decades on the tools, so that’s another reason a tradesperson might retire early.
50-59
51 people felt they’d be retiring between the ages of 50 and 59. This nice early retirement is certainly possible, with some prudent financial planning. Paying off your mortgage would be a huge step in the right direction, as well as living below your means and padding out that pension pot.
60-69
184 tradespeople (the biggest group by far) felt they’d be retiring between the age of 60 and 69. This includes around a third who felt that they’d be able to retire between 60 and 65 (which qualifies as ‘early retirement’), while the rest matched the national trend, which will see the retirement age rise to 67 by 2026.
70-79
Nearly 100 out of the 512 tradespeople we asked saw a late retirement on the horizon. We don’t know why exactly, but it could be for financial reasons. The cost of living in the UK has been brutal these last few years, and for those not lucky enough to get on the property ladder, the future might feel bleak.
However, with a little financial planning, investing, taking advantage of government help (e.g., lifetime ISAs) and upskilling to become the best in your trade, you will set yourself up for a comfortable retirement.
80-90+
A surprising 52 tradespeople said that they expected to retire between the age of 80 and even still be working into their nineties!
If you’re in a trade where you can charge a good rate for your expertise, you invest a little and save a lot via a private pension, then you shouldn’t need to still be banging the tools around into your eighth decade and beyond.
Unless you want to of course, which is another possible factor here. Some tradespeople really do love their jobs so much, they don’t want to give them up. (That would explain the 62 tradespeople who say they never wanted to retire in our survey!)
So, to sum up. The days may be long, but the years are short, and a little planning now can really pay off. Log onto your HMRC tax account and make sure your National Insurance contributions are in order, and make sure you’re paying into a private pension as a minimum. As always, seek independent advice if you’re unsure where you stand.
In the meantime, don’t forget to cover yourself for every eventuality with Rhino, your trusted, award-winning insurance partners. Call us today on 0116 243 7904.
Retirement can seem like a distant dream when you’re busy on the tools, but a little planning now can make all the difference later. Rhino surveyed 512 tradespeople to find out when they expect to retire, with answers ranging from under 40 to never!
Running a trades business isn’t easy. Rhino surveyed 512 UK tradespeople to uncover their top concerns for 2024. The biggest worries? Lack of work, rising costs, tool theft, and being undercut by competitors.
Called for jury duty? This guide explains who’s eligible, what to expect, and why it matters for self-employed tradespeople. Find out how Rhino’s Legal Expenses Insurance can help cover lost income while you serve.
Tell us your trade and get a tailored insurance quote for your business in seconds
Our team of experts are available to talk to Mon-Fri 08.30-17.30 and Sat 10.00-14.00
