Equity Release or Re-Mortgage to fund retirement?

Triumph13

Unfortunately I think you are very wise not to include any return from your 'investment' in your plans.


On a brighter note, with the NHS pension figure being post tax - so about £620 per month pre tax - and with an SP already above the new SP your position is looking very rosy indeed compared to your income needs. NHS pension + SP will give you just over £1,300 per month post tax. No need to pay any voluntary NICs and you to fill the 6 year gap when you just have the £620 a month from the NHS coming in costs £50k - of which £26k should be taken as taxable income from your private pension (assuming you have £35k or more in the pension) as that uses you opportunity to extract it tax free.
That leaves you with £120k, from which you want to give your kids £10k each so £100k left over.
The real question for you is what to do with that £100k? Would you like to use some/all it to increase your monthly income? If so then the key options to explore are drawdown strategies and/or deferring your state pension. If you think that £1,300 per month is already more than enough for your needs then you have a nice big holiday / emergency fund to get tucked away in ISAs.
Congratulations. You have made it.

Malthusian

Bravepants wrote: »

What happens when (sorry if) the hotel room doesn't materialise?

Will they hang on to your cash or give it back?

Regardless of the scheme's blather about care homes and hotel rooms, the money is almost certainly gone and the OP is wise to write it off (as per post #30) and treat any returns as a bonus.

Bravepants

Malthusian wrote: »

Regardless of the scheme's blather about care homes and hotel rooms, the money is almost certainly gone and the OP is wise to write it off (as per post #30) and treat any returns as a bonus.

Indeed. That's almost a quarter of her assets gone!


OP: Don't do it again!!

bostonerimus

ashpan wrote: »

high risk investment not development!!!
i invested £51k in 2015 with MBI property (now NPD ) in a care home investment with returns starting 5 years later with 10% added - care home failed to develop so divested ( with NPD adding on £10k) into a hotel room, it was always a high risk for high returns but returns anticipated for december 2019,

Sorry to say this, but these sort of schemes are often classic scams. How is the rest of your pension/ISA invested and where is the 50k in savings? You need to make sure your money is relatively safe before you do anything else.

kidmugsy

ashpan wrote: »

Is my personal allowance £12k pa - by exploiting this do you mean to keep it under the £12k limit

Yup. In 18/19 your personal allowance is £11,850. If your other income is £6k pa. then you can take £5,850 of taxable income from a pension and still pay no tax on it (or perhaps temporarily pay tax and then claim it back).

Moreover you might well arrange it so that the £5,850 taxable would be accompanied by £1,950 of tax-free lump sum. (Or you could draw out all the tax-free lump sum at the beginning - your choice).

AnotherJoe

ashpan wrote: »

high risk investment not development!!!
i invested £51k in 2015 with MBI property (now NPD ) in a care home investment with returns starting 5 years later with 10% added - care home failed to develop so divested ( with NPD adding on £10k) into a hotel room, it was always a high risk for high returns but returns anticipated for december 2019,

You've almost certainly lost all your money :mad:

ashpan

Triumph13 wrote: »

Unfortunately I think you are very wise not to include any return from your 'investment' in your plans.


On a brighter note, with the NHS pension figure being post tax - so about £620 per month pre tax - and with an SP already above the new SP your position is looking very rosy indeed compared to your income needs. NHS pension + SP will give you just over £1,300 per month post tax. No need to pay any voluntary NICs and you to fill the 6 year gap when you just have the £620 a month from the NHS coming in costs £50k - of which £26k should be taken as taxable income from your private pension (assuming you have £35k or more in the pension) as that uses you opportunity to extract it tax free.
That leaves you with £120k, from which you want to give your kids £10k each so £100k left over.
The real question for you is what to do with that £100k? Would you like to use some/all it to increase your monthly income? If so then the key options to explore are drawdown strategies and/or deferring your state pension. If you think that £1,300 per month is already more than enough for your needs then you have a nice big holiday / emergency fund to get tucked away in ISAs.
Congratulations. You have made it.

thankyou, can you clarify some of the points you have made please, so im not sure how you are suggesting i plug the 6 year gap between now and when my state pension is payable, apart from the NHS pension, are you saying i should withdraw £26k from my private pension to cover the deficit over the 6 years gap

thanks

ashpan

bostonerimus wrote: »

Sorry to say this, but these sort of schemes are often classic scams. How is the rest of your pension/ISA invested and where is the 50k in savings? You need to make sure your money is relatively safe before you do anything else.

my pension & ISA are with metlife and parmenion, i think theyre pretty safe
the 50k is in a deposit account until i stop dithering about where to put it!

ashpan

Bravepants wrote: »

What happens when (sorry if) the hotel room doesn't materialise?

Will they hang on to your cash or give it back?

unfortunately if the hotel room doesnt materialise (theyve already started the conversion though and the hotel does actually exist) then my money is gone along with the original investment

ashpan

jamesd wrote: »

You seem to have provided yourself with ample money so staying is fine.

One thing people here tend to have is the long planning horizons that come with retirement. Since reduced future mobility is possible, some favour moving while young. Others not all or later, or to relocate to their preferred part of the country or world.

You've provided so well for your self that the choices are yours to make, so simply do what you want. Though deciding on that isn't so simple sometimes. We've had people planing to sail all over the world and something like that is within your means if you want it.

theres lots i could do i guess but im feeling a bit 'stuck' at the moment, i think i need to consolidate my financial plans and undergo the transition from work to non-work before i make any big plans - being single makes me probably over-anxious about money and having enough but im hopefull that will settle and ill be able to enjoy my (young-ish) retirement
:T