Life changing decisions,need help

redmalc

Morning All,I am moving to new employment shortly which will be paying a very good salary and my wife will be finishing work at the age of 56,,we are lucky to have no debt or mortgage.
The issues i have are that we have cash Isa,s of 90K paying 2.85%,and S & S isas with app £100K,also Fixed term bank investments of 20K and NS&I of 20K and i have a pension with app 110K pot with Scottish Widows,my wife as no pension.
We will be able to invest or save 1K per month and will have a lumpsum of 70K and given my wife is no longer working and will not work in the future do i withdraw the cash isa,s and invest elsewhere and pay no tax on the interest and should i start a pension for her with part of the lumpsum.

Interhacker

Well how close are you to 56?

redmalc

I am 56,good guess

opinions4u

IFA time.

www.unbiased.co.uk

atush

First of all, I would transfer some of that 90K getting 2.85% into something higher? At least 3% but hopefully more.

Second, does the new job have a pension with employers contribs? If so, join it even for a just a few years. Esp as you appear to be a HRTaxpayer.

I would invest the new omoney into a pension for the Wife and savings in her name so she can register for gross interest. Maybe a regular saver this year and FR deposits next?

As for the ISAs, what they are invested in, and the new 70K you might need an IFA for that. I would certainly fill some new ISAs with some of it.

xylophone

https://forums.moneysavingexpert.com/discussion/3825455 - post 14
http://www.early-retirement-investor.com/age-related-tax-allowance.html
http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm
http://www.hmrc.gov.uk/individuals/savings-income.htm
http://www.hmrc.gov.uk/rates/it.htm
http://www.moneysupermarket.com/savings/
might be worth looking at.

redmalc

Thanks for all the replies,i can recall some time ago Dunstonh advising what qualifications you should be looking for from your IFA,i am unable to find that link can someone advise please.I am looking for general financial and pension advice
Thanks

xylophone

http://www.which.co.uk/money/tax/guides/choosing-a-financial-adviser/ifa-qualifications/

might help.

gadgetmind

redmalc wrote: »

given my wife is no longer working and will not work in the future do i withdraw the cash isa,s and invest elsewhere and pay no tax on the interest and should i start a pension for her with part of the lumpsum.

I really wouldn't touch those cash ISA. You might care to transfer some/all to S&S ISAs as you seem to have good cash buffers elsewhere.

Does your new job offer a pension? If so, take it as I suspect you'll actually struggle to maintain enough income to retire yourself in the medium term unless you start building some decent pension pots. Even if the job doesn't offer a pension, paying HR tax into one is a no-brainer.

I tallied total invested assets of about £400k, which at 6%pa would be about £24k before tax and without including state pension.

Do you both have full state pension? It's worth getting forecasts before speaking to an IFA as this is one of the first things he/she will ask for,

You might care to put £2880pa into a pension for your wife. HMG will boost this to £3600pa and if your wife *really* has no pension, she could take up to £18k under triviality in a few years. Do your research on this and/or ask an IFA.

redmalc

Gadget thanks for that,my new job does not offer a pension,i will carry on paying the £500 into my personal pension.
We both are ok with the state pensions,i will put the £2880 into my wifes pension and do my research on your last paragraph.