My situation

stephenadarglas

Hi everyone

Would just appreciate some comments on my current situation.

I'm retired with two pensions. One is from the Mineworkers Pension Scheme and the other is from the Teachers Pension Scheme. Both combined add up to £19000 pre tax.

I also have circa £100000 in a SIPP untouched and not adding any more money. Funds include two global funds and two uk income/accumulation funds. Also invested in the Smithson fund.

There's also circa £64000 in a S&S ISA untouched and currently adding £600 a month from a part time job that I have (one day a week). This fund choice is a little more adventurous and includes more growth funds (four in total). I'll pack this job in when wife retires.

My wife is 58 and intends working until she's 60. She has a Local Government Pension which will pay £12000 pre tax. She's also paying Prudential AVCs of £625 a month which currently totals around £17500.

Finally we have cash saved in various areas that include one year and two year bonds. £20000 in Premium bonds and a £20000 float in Santander - total cash is around £100000.

I'd appreciate people's views.

Kind regards

Stephenadarglas

cisamcgu

My comments :

You have £100,000 in cash
You have £100,000 in a SIPP
You have £64,000 in an ISA
You have a DB pension total of over £30,000
you have a part-time job that pays enough to put away £600 a month

Not really sure what else there is to say .....

unless you tell us so more information, or have a question , or .... ???

jamesd

Are you both already making gross pension contributions equal to your gross pay? If not, changing to do that and living off savings and existing pension income is likely to be a good move.

Marcon

jamesd wrote: »

Are you both already making gross pension contributions equal to your gross pay? If not, changing to do that and living off savings and existing pension income is likely to be a good move.

....except you probably can't. If contributions are to an employer's scheme, and personal contributions are deducted before tax is paid, NI is still (potentially) payable on the whole salary.

If OP makes contributions to a DC scheme, these are limited to gross earnings including any tax relief claimed on their behalf by the pension provider.

SeniorSam

Sounds good, but it depends on your needs in retirement as to your best way forward. The global funds should work well, I have a good part in my Sipp and am 78 now, but we do tend to spend a lot on holidays, so it has been useful to have a bigger Sipp, with growth of about 14%.
Adding to your Sipp if you can will increase the amount you hold in Trust, but one thing you have not mentioned is value of property and if IHT could be a concern after your individual allowance of £500k each, including residential allowances from next year.

jamesd

Marcon wrote: »

....except you probably can't. If contributions are to an employer's scheme, and personal contributions are deducted before tax is paid, NI is still (potentially) payable on the whole salary.

You just use a personal pension as well as the work one. It's easy. Yes this doesn't save NI unless the work portion uses salary sacrifice..

Marcon wrote: »

If OP makes contributions to a DC scheme, these are limited to gross earnings including any tax relief claimed on their behalf by the pension provider.

Yes. And the wife's DB value increase will need to be included in her annual allowance use check.

Albermarle

I'd appreciate people's views.

You are sitting very comfortably !

stephenadarglas

Thanks everyone for their comments and the food for thought. Much appreciated.

justme111

You either will fund your care or your descendants /charity of choice will be happy