What to do with cash?

Ganga

Can i ask for some free financial advise please,my wife and i have both just retired.

Wife has started her state pension and her boots pension.

I have defered my state pension from last July.

We will have approx £44.000 cash from our 25% tax free allowance from both our private pensions.

Still have about £8000.00 to pay to finish morgage (hurrah )

Will have about £8800.00 from defered state pension in july

Can any of the learened followers of this board give any guidence on the best way forrward.

Thanks in anticipation
Ganga

mgdavid

need more info:-

are you still working?
when will you retire?
what are your respective income tax positions?
have you worked out what net income you (both) need in retirement?
will your pensions meet this level of income need?
what other plans do you have for the capital - new car / holidays / gifts to family / etc etc.

coyrls

mgdavid wrote: »

need more info:-

are you still working?
when will you retire?
what are your respective income tax positions?
have you worked out what net income you (both) need in retirement?
will your pensions meet this level of income need?
what other plans do you have for the capital - new car / holidays / gifts to family / etc etc.

He does say:

my wife and i have both just retired

bigfreddiel

I didn't think advice was allowed on MSE? fj

dunstonh

an i ask for some free financial advise please,my wife and i have both just retired.

That is not allowed. It would be a breach of regulations and board rules. Discussion and comment only here.

Can any of the learened followers of this board give any guidence on the best way forrward.

Not sure what you are after as you have given no information on objectives What you want to do and when etc need to be known before you start looking for solutions.

bigadaj

As others have said what do you want.

Simplest thing that is low risk and profitable is to continue deferring the state pension. Low risk returns from lump sums are poor the best you could do would probably be multiple current accounts, check the savings and investments or banking boards for details.

Ganga

Sorry have worded the post wrong,was looking for genral info as to what other people would do with that sort of cash sum.Can we recycle the pension money legaly,do not want to fall in to any tax blackhole.
We have both just retired
we were both lower band tax payers
We were hoping that there was a way of doing something with the money that will make it grow ( i know savings rates are poor )
Our long term plans are to have a couple of holidays each year ( we tend to go to Majorca,Greece etc and do not do luxury/expensive/long haul )
Once the morgage is payed off we have no debt.
As for living costs have worked out: Outgoings - £400.00 per month plus food/drink etc.

Income -- £1470.00 per month - this includes my state pension that is deffered at the moment.

We do not own a car,both have bus pass,there is good transport links where we live.

Thanks
Ganga

Ganga

Is re-investing some of the money into other pension schemes legal ?( i do not know enough about recycling rules)

Huskyrunner

my advice go and see a fully qualifed pension advisor/IFA

jamesd

Ganga wrote: »

Is re-investing some of the money into other pension schemes legal ?( i do not know enough about recycling rules)

Yes. Unlimited amount out of income, at least £7,500 a year (rolling twelve month period) from a tax free lump sum. If 30% of the lump sum is higher, use the 30% instead of the £7,500.

Alternatively if it wasn't pre-planned to fund the contribution from the lump sum there is no limit. There is a degree of subjectivity to this but it's pretty clear that the poster here hasn't pre-planned it.

jamesd

Ganga wrote: »

Can i ask for some free financial advise please,my wife and i have both just retired.

Have you both paid 100% of your earned income into pensions this 2015/16 tax year? If not, hustle and get it done before the tax year ends.

I'm assuming that either your incomes are each below 40k of that you each have unused annual allowance from the last three tax years to allow this. I'm also assuming that you'll have a tax rate no higher after retiring than you do now.

If you don't know of a place that can get it done fast, Hargreaves Lansdown can get one opened and funded in fifteen minutes or so, longer if you need to phone them to ask for help.

Your gain from this is likely to be between 6.5% and 25% of the money paid in, depending on just how much if any of your personal allowance for income tax will be available in future years.

Ganga wrote: »

Will have about £8800.00 from defered state pension in july

How's your health and income? Usually it's more profitable to take higher income than the lump sum.