What would you do?

nearlyrich

kidmugsy wrote: »

Medical and care costs?

I think the NHS will pay my medical costs and only a very small percentage of people go into care homes.

kidmugsy

nearlyrich wrote: »

I think the NHS will pay my medical costs and only a very small percentage of people go into care homes.

What if you want medical treatment that NICE hasn't approved? For yourself or your wife or your widow.

What percentage who reach, say, 85 go into care?

atush

tony4147 wrote: »

Thanks for the comments.
Looking at my pension I'm relatively happy with the contribution level and my expectation for the next few years.

It might be more sensible instead of increasing my contributions over the coming years that I increase contributions into my wifes pension.

She is 51 y/o teacher, has been in the Teachers pension about 11 years, and as she keeps telling me there are no teachers in her school over the age of 60.

As she is also a HRT it might be best to pay more into her AVC's to help bridge the gap of when she retires to being able to claim the state pension.

First of all, no teachers over 60 as they pension used to be able to be taken at 55, then 60. All teachers from my children's primary school who retired disappeared for a few months, then turned up as supply teachers?

What is her SRA? 65? Does she want to retire earlier?

If yes, then use PP or Sipp instead of AVCs as the former can be taken at 55, and the latter is tied to the SRA. You can use the AVC perhaps (if the new flex pensions apply to them) when she retires if before SPA.

tony4147

atush wrote: »

First of all, no teachers over 60 as they pension used to be able to be taken at 55, then 60. All teachers from my children's primary school who retired disappeared for a few months, then turned up as supply teachers?

What is her SRA? 65? Does she want to retire earlier?

If yes, then use PP or Sipp instead of AVCs as the former can be taken at 55, and the latter is tied to the SRA. You can use the AVC perhaps (if the new flex pensions apply to them) when she retires if before SPA.

SRA?? what is that?? her TPS is for 60, her state pension age is 66

atush

scheme retirement age

Does she want to work to 60?

tony4147

atush wrote: »

scheme retirement age

Does she want to work to 60?

Yes she wants to work to 60, but probably no more after that

atush

Then AVCs could work, esp if it is salary sacrifice. If not then maybe a DC PP.

But I am not sure if AVCs will be treated like DC pensions under the new regs, and if not then it could cause problems. We need clarification on the treatment of avcs.

So go ahead and make them, but perhaps be ready to pull the plug if a DC pension turns out to be better?

As if you/she wants a Lump Sum it is a bad idea to commute a FS to get one. She may have a LS coming under old rules but we don't know as I don't think you said.

tony4147

Under the TPS she will get a lump some and can buy an additional lump sum, but we have already worked out that she is much, much better not taking the additional lump sum, better off keeping the pension.

tony4147

OldBeanz wrote: »

Why not take out an annuity for an inflation linked £12.5k. This will then give you a pension including your SP of £20k index linked for the rest of your life.
You then have the rest for wine, women and song or investing in riskier areas.
You do not want to be spending too much time watching your investments.

I can see where you are coming from but an index linked annuity for £12.5k will use up most of the pot after the TFLS!!