Pensions / Saving / Investments

Notfarfromtheborder

Afternoon all

Can't believe a year has gone by since my first post

As an update, DC pension pot has increased from £80K last year to £125K due to £2K per month and £10K bonus going into pension via SS

Both in mid 40's, wanting to get to 55 with options regarding retirement. Mortgage totally gone, however, liquid assets now up to £8.5K once regular savers mature tomorrow, will be sent straight to 123 acct.

OH is in NHS 1995 scheme, just under higher rate tax threshold and has been in it since 21 so she will get a decent £10k pa pension from 55 in 1995 scheme, depends how long she works but am planning for another £7.5K from 67 in new 2015 care scheme

Other pension is an old db pension that is forecast to pay circa £8K pa after 65.

Will open 2 new FD regular savers tomorrow, £600 a month going into these, should also have £800 per month available to go into 123 acct so in a couple of months this will be up to £10K which I am happy with.

My plans are quite drastic drawdown of around £31K from age 55, should have a minimum pot of £350K plus £100K cash / investments outside of pension by then (based on strong contributions for 5 years and then not much for 4 years after, will probably look to downgrade job when I have enough in DC pot adding in forecast growth to get to £350K in 9 years). This should leave around £100k in the pot once I get to state pension age

Next steps, not sure, maybe thinking an S&S isa with some tracker funds at £800pcm with bulk purchases of £8K every year when regular savers mature which I can use earlier than 55 if I need to. Only question is what do I put it in?


Would you keep the ex pension funds defensive, and leave the pension in average / above average risk categories as I will need to 'self lifestyle' funds to ensure any dips in the markets do not scupper my plans.


Might need to wait for Georges plans as well before making big decisions.

That's all presuming I can keep my earnings where they are for next five years as work is BAD at present.......

Any other ideas that I am missing?

Thanks in advance

atush

You seem to have the cash in order now, and pensions (but did you open a DC one for the wife yet?)

So S&S isas are the way forwards now.

Notfarfromtheborder

No DC pension opened for OH, couldn't see the point when she is BR tax payer and I have anywhere between £24K and £34K at 40% which is now sacrificed to get me to paying BR tax.


Her pension kicks in at 55, unreduced which will eat up most if not all of her tax free allowance.


Am I missing a trick, maybe around her having a DC pot with 25% tax free lump sum available?


If so, would this be more beneficial than the tax relief I currently get?

atush

It is slightly beneficial to have her a DC pension as 25% is TF. but a S&S isa for her would also be a great idea.

As the income is tax free once she starts taking it.

but this would be alongside what you invest in your pension. If you have extra cash after you have used all your HRT allowance. As with SS you get 42% TR on this?