Project Mortgage Neutral Begins

savingholmes

Depending on how close you are to retirement - if you put extra money into a pension - the government refund the tax - so it is like your money is going at least 25% further. I am planning to do that for DH so that when the time comes we can take a tax free lump sum of 25% if we want to... We can access from 55. The government is changing the ages to 57 soon depending on when you were born.

ajmoney

savingholmes said:

Depending on how close you are to retirement - if you put extra money into a pension - the government refund the tax - so it is like your money is going at least 25% further. I am planning to do that for DH so that when the time comes we can take a tax free lump sum of 25% if we want to... We can access from 55. The government is changing the ages to 57 soon depending on when you were born.

As a public sector employee I have a pretty good pension and can't contribute extra. I get my pension from the day I leave so long as I complete my initial contract (I am 2 years away) and a good lump sum. When the time comes I hope my mortgage has been paid off and there is somewhere I can put the money so it will work for me.
I will look at other options and see if I can start private teaching once lockdown is over, whenever that may be. 

Lomcevak

ajmoney said:

I don't like the answer I get from the calculations, it is far too close to actual retirement age I guess I need to find ways for my money to work harder and save more.

It's a problem I'm wrestling with at the moment too, I'm finding it a really hard calculation to do - I think my problem is that i'm fairly risk-averse, so add contingency at each step, and everything multiplies up to a very large number.

ajmoney

Lomcevak said:

ajmoney said:

I don't like the answer I get from the calculations, it is far too close to actual retirement age I guess I need to find ways for my money to work harder and save more.

It's a problem I'm wrestling with at the moment too, I'm finding it a really hard calculation to do - I think my problem is that i'm fairly risk-averse, so add contingency at each step, and everything multiplies up to a very large number.

I am going to do a search online to make sure I am not missing something in my calculations although it might be the same problem you think you have with risk aversion.  I am slightly above the middle on the risk scale with my S&S ISA but I don't put enough in to it really, that is what I am using the next 6 months for...to see if I can commit more to this.

ajmoney

I need to support my recently planted blackcurrant shrub but I don't know whether just to use a can or find a way of supporting from the shed as I deliberately planted it nearish for this reason, any advice or suggestions? If the weather lets me get outside I will try and do that at least today and maybe deadhead some roses.

Suffolk_lass

Don't forget you will stop paying National Insurance when you take your occupational pension - you might want to continue making voluntary contributions to maximise your state pension after you cease your main job (teaching your instrument would help) This Guardian article explains it clearly

ajmoney

Suffolk_lass said:

Don't forget you will stop paying National Insurance when you take your occupational pension - you might want to continue making voluntary contributions to maximise your state pension after you cease your main job (teaching your instrument would help) This Guardian article explains it clearly

I will be 43 or 48 when I take my occupational pension and will need to continue working so I assume at that point I will continue paying NI?  I am fully expecting to pay this until state pension age anyway as I am assuming it is not protocol to just stop paying when you have made 35 years of contributions?  I have no idea what age I started paying NI, definitely at 21 when I started this job but with the work I had before that as a student I haven't got a clue.

Mrs_Money_Penny

Hi Ajmoney Normally just read and run. Love your diary by the way. You can go on the government web site and see what contributions you have made, and how many more you need to get full state Pension. You probably know this so apologies if this is the case. x

Mrs_Money_Penny

Hi Ajmoney Normally just read and run. Love your diary by the way. You can go on the government web site and see what contributions you have made, and how many more you need to get full state Pension. You probably know this so apologies if this is the case. x

ajmoney

Mrs_Money_Penny I didn't know this, thank you.  I appear to be having issues setting it up though as it says cannot confirm my identity!!!!