How best to use my pensions alongside other money.

feet_up

I will be 65 in October and am sorting my pension funds out and have a plan for my financial future.I would welcome observations and answers to the questions I am asking myself.


I’m married with a 17 year old child who aims to go to University. My wife is younger and works part-time, I work part time but for very low wages. I currently do not pay income tax. Essentially I am retired. We own our own home with no mortgage, have no debts and my wife has savings and pension and will probably have a substantial inheritance (parents in their 80’s.)


I live within my means at present and as well as financing that, I want to be able to contribute to child’s education possibly help him buy a property when he wants to, and plan things so I can minimise the IHT problem he will have some time in the future.

I have 4 pots of money in roughly equal measure

Pensions (All Defined Contribution which I plan to consolidate)
Unit Trusts (A diversified mid- adventurous portfolio)
F&S ISA (As above)
Cash ( In Index Linked NS&I, Fixed Rate and Easy access)
I will also get the full state pension at 66

My Plan
As I have enough in funds and cash to sustain my lifestyle for a few years without touching pension or ISAs I'm thinking of..


Consolidating pensions into a SIPP (probably with Interactive Investor). I’m confident enough to invest the money myself.
Each year bed and ISA money from F&S to ISA; fund Junior ISA for child;, pay £2880 into pension.
Fund my living expenses from my F&S or cash accounts for the foreseable future.

Put child as beneficiary of pension fund and thus potentially shelter that from IHT.

Questions
What do you think of the plan – what are the pitfalls?
I use III for my funds and ISAs does it make sense to add them as SIPP provider too?
If I plan to only use the pension later on and potentially not at all should it be Flexible Drawdown or UPFLS?. To be honest not sure I fully understand this or if/when I should take the tax free lump sum

Is what I plan the best, most tax efficient and sensible approach.


I'm also approaching IFAs with this - I'm sure someone will suggest this:-)



Thanks for any help

MallyGirl

you will only get 1 year of JISA if they are 17 Probably not worth the effort as they are unlikely to pay tax on that amount anyway.