What to do with S&S/cash ISAs when you retire?

Stochasticity

In terms of how you withdraw money from ISAs (both Cash and S&S), there are two options:

1. Withdraw the natural income as and when it arises (you can instruct most ISA providers to do this, such that interest/dividends are paid straight into your current account as soon as they are paid), and/or

2. Withdraw the capital as and when you please (subject to the conditions of the ISA in which the money is held, e.g. fixed-term cash ISAs may not allow this, or may only allow it with loss of interest).

There are no tax consequences associated with either.

Lois_and_CK

Thanks everyone who has taken the time to reply to my questions - much appreciated.

Stochasticity wrote: »

In terms of how you withdraw money from ISAs (both Cash and S&S), there are two options:

1. Withdraw the natural income as and when it arises (you can instruct most ISA providers to do this, such that interest/dividends are paid straight into your current account as soon as they are paid), and/or

2. Withdraw the capital as and when you please (subject to the conditions of the ISA in which the money is held, e.g. fixed-term cash ISAs may not allow this, or may only allow it with loss of interest).

There are no tax consequences associated with either.

Thanks Stochasticity; this is exactly what I wanted to know.

Lois_and_CK

westy22 wrote: »

That would be the conventional method of reducing risk / volatility as you approach retirement but I'm not sure that holds true today. Bonds are probably more risky than equities at this precise moment - still, you should not need to assess that for at least another 10 years. I'd stay where you are in 80% equities and revisit the issue in about 2023.

Thanks Westy, that's interesting to know. It's something I'll certainly keep an eye on in the future.