Help with retirement finances

Nual

I have asked this before and received good advice but then life got in the way and then the rules on pensions changed, so I would appreciate people's thoughts.

I am 60 and about to take voluntary (?) redundancy which means I will have 120k in lump sum, AVCs and redundancy to put somewhere. I currently have 70k in cash ISAs, current accounts, regular savers and NS&I index linked. I will have a LGPS DB pension of 15k plus 6k other income. Mortgage paid.

Starting to panic a bit now. My only exposure to investing to date is with one of my AVCs which was doing ok but now appears to have tanked. I know the mantra of invest for the long term but to be honest I don't think I will make very old bones and would like to leave as much as possible to my children.

Any suggestions for what to do gratefully received

kidmugsy

If you want money to go to your children, leave the AVC intact. Complete an Expression of Wishes form, from the provider, in their favour.

If you are going to be a higher rate tax payer this tax year, make a personal pension contribution to avoid that. Do it quickly, before the Budget on March 16th. That too would be money that could eventually go to your children.

Put the other capital into a suitable account at ns&i while you work out what to do with it. If you find the prospect of investing intimidating, find yourself an IFA.

Nual

Thanks KM- I have never heard of an expression of wishes form. I am not a higher rate taxpayer as I have been shovelling as much as possible into my AVC.

kidmugsy

Nual wrote: »

Thanks KM- I have never heard of an expression of wishes form. I am not a higher rate taxpayer as I have been shovelling as much as possible into my AVC.

The other thing you could do from 16/17 onwards is pay £2880 per tax year into a personal pension. The provider claims £720 tax relief from hmrc and adds it to the pot. You can do this each tax year until your 75th birthday. This will accumulate for you or your children. You might like to study the Budget of March 16th to see whether changes are introduced.

On the subject of your redundancy pay, I imagine that you've been briefed that the first £30k is tax-free and the rest is taxable.