Best place to put £50K?

xylophone

what is left is frozen,

There is no investment return at all? Do you receive regular statements?

Your current employer/your wife's employer does not offer a pension?

Have you both obtained new state pension statements?

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

You could each consider contributing to a SIPP with HL as described above, leaving the money in cash and awaiting the tax relief.

http://www.hl.co.uk/pensions/interactive-calculators/tax-relief-calculator


If either of you is a higher rate tax payer you would claim any additional relief through HMRC.

You could then each take a 25% tax free Pension Commencement Lump Sum and draw down the balance as suited your circumstances.

If neither of you has ever had a Nationwide Flexdirect account, you might consider opening one each and a joint which would enable you to earn 5% interest on a total of £7,500 for a year.

You would need to pay £1000 into each account from an external account - you can transfer it out again immediately.

A Regular Saver at 5% is also on offer.

Savings Rates here

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Arbitrator

xylophone wrote: »

There is no investment return at all? Do you receive regular statements?

Your current employer/your wife's employer does not offer a pension?

Have you both obtained new state pension statements?

My wife has been self employed but paid contributions and entitled to full state pension, as am I.
I have been receiving annual statements on the frozen pension and it appears to appreciate each year.
We are neither of us high rate tax earners...far from it! :rotfl:
We do both have the NW Flex account already, and both have a std bank ISA, though not maxed out.

Not sure if at the age of 62 it's worth setting up a SIPP and transferring all into it?
Probably left it too late.

xylophone

entitled to full state pension,

You have both actually obtained new state pension statements?

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

frozen pension and it appears to appreciate each year.

Not exactly frozen then!

Is it a defined contribution/money purchase pension if so are there any safeguarded benefits like a guaranteed annuity rate) or a Defined Benefit Pension?


The suggestion about opening a SIPP was not so much about a transfer in of your existing pension as using some of your "windfall" tax efficiently, as it seems that you both have "relevant income" and yet are not contributing to pensions.

Your wife expects to have no earned income in 19-20?


Let's suppose that she earns £18000 in the current tax year.

She could pay £14400 into the SIPP next March say and wait for the tax relief to be added (£3,600)

In 19/20 she could take a tax free Pension Commencement Lump Sum of £4,500 and use her Personal Tax Allowance (perhaps up to £12,000 in the new tax year?) against drawing down the balance - she could take the rest in the following tax year.

Arbitrator

Just checked and I appear to have a Buy Out Pension Plan - frozen in as much as it no longer receives any contribution.
I also appear to have a Group Protected Rights Investment whatever that is. Came from a period of contracting out of SERPS I think.

Presumably I could open a SIPP for each of us from the inheritance cash?

kidmugsy

Arbitrator wrote: »

Presumably I could open a SIPP for each of us from the inheritance cash?

That's the ticket.

FatFudge

I am looking in to investing a reasonable sum of money in to a fixed rate bond with Citibank. States fscs protection up to 85k. Any one with any experience on these type of investments?

Hovard

Real estate investments are quite conservative but profitable, especially during times of crisis and asset depreciation. It is especially beneficial to invest in real estate in large cities, crowded places and resort areas. It often seems that real estate is being given cheaply in relation to its value, but it is actually profitable. Especially when it is a passive and reliable income, where it is not scary to invest a really big money.

Goodyear62

I am semi retiring from NHS and get lump sum of £45000 so wondered best way to invest it with good interest on it but may need to take some out occasionally for holidays etc Ta All

xylophone

get lump sum of £45000 

NS&I Income Bonds might suit - you could also open a Direct Saver and deposit the monthly interest there.

You might buy Premium Bonds.