some help for a dentist....

JivingJason

Hi,
I am a 42 year old dentist , one kid, wife works part time....
1. I have been working for the nhs as an associate for 10 years and was contributing to the 2008 and now 2015 scheme.I contribute a huge chunk per month and do not want to increase contributions as I do not want to invest more in this scheme as am unsure of placing all eggs in one basket and the retirement age keeps going up. Also dont think nhs dentistry will be there for long...
2. I have some savings in cash and some in both cash and s and s isa...infact too much in cash..
Some guidance needed
1. What kind of pension would suit me? SIPP or a private pension. I hope to retire t 60 and will need around 2k/ month as not spendthrift...I am a bit risk averse as I feel that shares keep going up and can crash as well...one of my patients, an investor told me that if ''you cant sleep at night worrying about the stock mrket, investing is not for you''...
I know taking advise is risky but some pointers would help
Jason

Peelerfart

Hi, I can't help directly, but maybe post on the pensions board instead might instigate more relevant replies.

Good luck :-)

xylophone

Have you obtained a new state pension forecast?

https://www.gov.uk/check-state-pension

Have you checked your position with Lifetime Allowance?

https://www.nhsbsa.nhs.uk/member-hub/lifetime-allowance

http://www.legalandmedical.co.uk/3-reasons-to-have-a-pension-pot-that-is-over-the-allowed-limit/

JohnRo

Are you utilising your entire annual ISA allowances each year?

kidmugsy

Are you a higher rate taxpayer? Does your wife have a good pension provision? Is your wife under 40 (so that she could open a LISA)?

JivingJason wrote: »

Also dont think nhs dentistry will be there for long...

That is a feeble reason to eschew using the current scheme. In fact it might be a good reason to grab the chance while it still exists.

JivingJason

Hi,
I plan to continue using the nhs pension scheme. My Spouse work's part time and her pension pot is v small.
I am a high rate tax payer.
I have used up most of this years isa..I haven't opened one for my spouse as though I have a lot of cash..I am reluctant to invest as am concerned about risky markets..
I also made wrong decisions on shares and lost a bit of money..
Jason

kidmugsy

JivingJason wrote: »

. My Spouse work's part time and her pension pot is v small. ...I am a high rate tax payer.
Jason

Then consider (i) contributing enough to a personal pension of some kind to avoid higher rate tax, and (ii) contributing to a pension for your wife.

JivingJason

Thats the problem: personal pension or sipp??
Jason

LHW99

You could open a cash ISA in your wife's name. That would use (rather than lose) this year's allowance and I think could be transferred into an S&S ISA at a later time when you have learnt more and are more comfortable with funds.

buyhighselllow

JivingJason wrote: »

Thats the problem: personal pension or sipp??
Jason

If you are risk averse, surely investing via a SIPP or Private pension is not for you..yes their is a tax advantage but aren't private pensions are based on the stock market ? Plus you are tied to when you can get your hands on the cash.

Have you maxed out all the high interest accounts available and regular savers, NSI bonds ?.. ( especially in your wife's name who can earn £1000 in interest per year tax free )

Interest rates will probably rise over the next few years.

You could drip feed regular amounts into a lower risk tracker fund ( with low fees ) within an ISA over the next 18 years, dividends will reinvest and you can follow the market through the highs and lows to come, rather than shove a lump sum in now while the markets are fairly buoyant. You also then have the flexibility to take that cash whenever you want it rather than be locked into not being able to access it it before 55 or whatever the age will be raised to when you come to want it.

You may well find you want to retire before you are 60, its a stressful profession,and lots of bad backs etc. I would diversify as much as possible and keep a reasonable degree of liquidity.

JivingJason

I am risk averse but more on the balanced side, not high risk side..
bank accounts..I have a couple but cant maintain too many
NSI bonds? are nt the yields low??
Am thinking of a multiasset fund to drip feed which will rebalance on its own..
Jason

Yes, bad backs are a big issue with us:(