Pension or isas.

Pikeman1

Hi just joined the forum wealth of information. I'm 62 no mortgage and a flat I rent out also mortgage free. Have stocks and shares isas with h l. Have a small private pension af around 20000 with Scottish widows stopped paying in years ago. Have a fair amount of cah in marcus waiting to be invested. Not sure wether to carry on investing in isas using my wife's allowance as well or may be transfer my pension into a sipp and pay into that. Any thoughts appreciated

cloud_dog

Pikeman1 wrote: »

Hi just joined the forum wealth of information. I'm 62 no mortgage and a flat I rent out also mortgage free. Have stocks and shares isas with h l. Have a small private pension af around 20000 with Scottish widows stopped paying in years ago. Have a fair amount of cah in marcus waiting to be invested. Not sure wether to carry on investing in isas using my wife's allowance as well or may be transfer my pension into a sipp and pay into that. Any thoughts appreciated

What is your purpose, what are you trying to achieve?

Pikeman1

Good question still working and don't mind as work for my self and if I want time off I can take it. The answer is mostly for my retirement I suppose although health permitting will carry on working. At 62 though can't go on forever lol. So really just to have a decent pot of funds. Even thought about buying a property to refurbish and flip. Not so keen on buy to let now with all the changes end of section 21 etc. As you can probably tell my thoughts are all over the place lol.

xylophone

Have a small private pension af around 20000 with Scottish widows stopped paying in years ago

Is this your only pension provision apart from State pension?

Have you and your wife obtained state pension forecasts?

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

Consider resuming pension contributions?

cloud_dog

Pikeman1 wrote: »

Good question still working and don't mind as work for my self and if I want time off I can take it.

Director of your company or sole trader?

Pikeman1

Hi yes my only pension. But I do have a flat I rent out. Also about 80000 pounds in stocks and shares. About 100000 pounds in low interest bank accounts. This is money I inherited a couple of years ago. Got my pension forecast which is due in 4 years should have the full state pension. My wife has hers a few years later. I'm a sole trader. May be transfer the private pension into a sipp with hargreaves lansdown and start putting into that. Thanks for the comments.

steampowered

As you are so close to retirement, it is worth putting a big chunk of that into a pension, to get the tax relief and reduce your tax bill.

Perhaps even 100% of what you are earning as a sole trader. You have more than enough cash savings to live off.

You'll be able to get that money out again when you reach retirement anyway.

Might be worth seeing a professional to get some proper tax advice ...

Pikeman1

Thanks for the replies. Still thinking about buying a property in need of renovation and adding value. Seems like another job in itself though. Think the easiest option would be to carry on doing the job I'm doing now and max out on isas a nd pension. I earn decent money so have a decent sum at the end of the week. Also have the rent off the flat to invest. Ten years younger would probally go for the property option.

Thrugelmir

Said politely. At 62 you need to be picky what investments you choose whether it be via ISA or pension. Markets can turn volatile at any time. Far too easy to view them as a bank deposit account which they most certainly are not.

Pikeman1

Yes that's a concern. At the moment got funds in foreign and colonial now bmo. Legal and general trackers. Artemis income and fundsmith. Happy to leave them as is. It's the funds in marcus getting 1.5 per cent I want to do something with. But if the markets crash I'll be happy with marcus lol.

Pikeman1

The money in marcus is in mine and the wife's name so using the 1000 pounds a year allowance so at least it's tax free