tax/savings strategies for AFTER retirement

mark55man

I am sure you have thought of this but don't forget your OH has her own capital gains allowance and as I understand it you can transfer shares to her without crystallising a gain (and if I recall correctly at the same purchase price as you would use)

FatherAbraham

kidmugsy wrote: »

You persuade your wife to divorce you. The court gives her half of both your pensions. Then you kiss and make up. Prob solved.

Many years later you might remarry to avoid difficulties with inheritance tax.

I fail to see the advantage of waiting to remarry.

Considering there's a valuable DB scheme in the game, immediate remarriage looks like the most sensible strategy.

The standard technique is to drive direct from the divorce court to the registry office, being careful not to die on the way.

Warmest regards,
FA

fizio

FatherAbraham wrote: »

I fail to see the advantage of waiting to remarry.

Considering there's a valuable DB scheme in the game, immediate remarriage looks like the most sensible strategy.

The standard technique is to drive direct from the divorce court to the registry office, being careful not to die on the way.

Warmest regards,
FA

Good to see that realism is overtaking romance when it comes to finance :-)

jamesd

haf63 wrote: »

Thanks Richbeth

I'm doing the same sort of thing in my investing now as Richbeth did. Many with a desire to retire well before state pension age are likely to find themselves forced not to use the pension wrapper for some of the money just to be able to draw on the capital at a sufficient rate. The need for this is greater the farther away from state pension age and DC pension age you get. When you're retiring close to those the pension lump sum can be sufficient to draw on and do the job, if it's not earmarked for mortgage clearing use.

haf63 wrote: »

the whole thing does seem horrendously complicated with multiple pension/investment/tax options.

It's not too bad, just takes some gradual learning of how the pieces fit together. That takes a while but once you get there it's OK.

haf63 wrote: »

I also realised that I have a lot of company shares and given the CGT situation I had better start to cash them in gradually now rather than leave till the end and be hit with CGT bill.

Right. And your wife has a CGT allowance, while you can transfer to her with no CGT implications, so she can use her allowance to help unless they are held on a company system that doesn't permit transfers.

haf63 wrote: »

Similarly I'll get the OH a SIPP started as have also left that too long and as far as I can tell you can't buy prior years if not in work..

I'm not sure what this refers to but here are some likely cases:

1. You can buy past years for the state pension whether working or not. No need if you're the person in whose name child benefit payments are made because that produces credits for the duration of receipt of them.
2. The carry forward of annual £50k/£40k allowance is only available for years when in a pension scheme, you get no allowance for any year when you weren't in one.
3. The earned income limit on contributions can't be carried forward, it's only available in the year in which it was earned. the £3600 gross limit applies to those with no earned income in a year, or less than £3600 of it.

fizio

Thanks again jamesd and I'm feeling more informed each day and I still have a good few years to work out the details for retirement..

As a result of this thread I have been pulling together all the smaller savings/invesment/pension funds that me and my OH have between us and it does add up to a nice amount - ontop of the main pension stuff I have been concentrating on (DB, DC, ISA, BTL)

I'm now comfortable I know what to do between now and taking early retirement and just hope the goverment doesn't throw another spanner in the works as reducing the 40k annual allowance or 1.25M LTA will not help my cause.. Hopefully, with an election coming up, the govt will leave things as they are for a few more years..