It's time to start digging up those Squirrelled Nuts!!!!

Sea_Shell

fred246 said:

Remember DC pensions aren't part of your estate.

And the prize for spotting my deliberate mistake goes to.....

Do you know, I just twigged that last night, but it was a bit late for posting.

Yes, you are quite right.   About £350,000 of our assets are currently within DC pensions, so yes, they would fall outside the estate and be paid out by the trustees, as per the nominated beneficiaries, or of their own discretion.    So that means we'll just squeak under IHT, so our Executors will have to be very careful about a very accurate probate form, as it may come under extra scrutiny!!

However, if we didn't go "together", and the pensions had paid out on the first death, then there would only be one persons pensions that would then be disregarded, so say only £175,000 was still in Pensions, that would push us back in to IHT on 2nd death.

Sea_Shell

Alice_Holt said:

Sea_Shell said:

I have just had a bit of an "eek" moment!!!    As it stands our estate (on second death) would be due an IHT bill of £140,000.   

Including the house, we have a smidgen under £1m, in assets and no direct descendants, so we'd only have nil rates bands of £325,000 each, £650,000, leaving £350,000 taxable at 40%...

   

      I've taken to reminding myself that a £100 purchase, is actually costing me just £60. 
      Using this 40% discount ploy has helped increase spend slightly.
      
 

That's an interesting way of looking at it.     But it's not really costing you less is it.   It's your estate (beneficiaries) that would end up paying!!    

I don't think we now need to worry, yet.   See my latest post, above!!

Sea_Shell

Sea_Shell said:

fred246 said:

Remember DC pensions aren't part of your estate.

However, if we didn't go "together", and the pensions had paid out on the first death, then there would only be one persons pensions that would then be disregarded, so say only £175,000 was still in Pensions, that would push us back in to IHT on 2nd death.

Actually (and sorry for quoting myself!), would an inherited DC pension, between spouses, STAY in a pension, to be placed in drawdown etc?    Or would it be paid out as a cash lump sum?

shinytop

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/defined-benefits-defined-contributions/
Looks like under 75 tax free, over 75 marginal rate.  

Sea_Shell

shinytop said:

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/defined-benefits-defined-contributions/
Looks like under 75 tax free, over 75 marginal rate.  

Personally, I was thinking about an immediate joint death catastrophic scenario!!!

But yes, useful information, for the future.

Sea_Shell

DH has started to make initial contacts to get the ball rolling on his "small pot" withdrawals due in September.

Following advise on another thread, he's written to Prudential to request the relevant forms, as apparently they are very slow at the moment.  
He's also contacted Aviva via phone message, and they've emailed back to say to recontact them 12 weeks before his 55th birthday (why on earth didn't they say that in the letter they sent him about it on 5th March!?!!)
The third one is with Phoenix (ex NPI), and I can't remember if he's contacted them yet or not.

All 3 will come to about £16,000, depending on final valuations, and so with 25% tax free, he should still remain within his personal allowance, for the 21/22 tax year, just!   

This money will help form our cash float, as we have another £60,000 of maturing cash from a fixed term account due.   So once we've filled our ISAs, we'll have about £36,000 left, of which we'll keep back £15,000 and re-invest the rest outside our ISA's for the short term (2 years) until new ISA allowances become available.    We won't end up paying CGT, unless we somehow double our money!!! - Even then, we'd just take "enough" out to avoid CGT!

DH's main pension will then go into drawdown in April 2022.    Having taken the 25% TFLS and filling our ISAs for the 22/23 tax year.   We'll eventually have spare ISA allowance in April 2023.

And breathe....

Sea_Shell

In non money related matters....

Went and did some running efforts round our local rec ground (6x 2mins, with 2 min recovery), and then did 20 mins in the outdoor gym.   I've not done that for ages, well, it's been closed for a lot of the last year!!!     

I've also been back swimming again once a week since they reopened, and do a mile each time.   That takes about 55 mins.   I had to be dragged out the pool almost this week, as I just wanted to get 2 more lengths in, but no, times up, out you come.   It was so lovely to be last one still in, when it all goes calm and quiet.

My ASDA mobile is porting over to their new network today, so fingers crossed that all goes smoothly.   We did DH's earlier in the week, and after a bit of nail biting, all was OK.   

MallyGirl

Running club is back on here - limited numbers and have to book but that is OK. I also go to a PAYG gym on a Saturday now and do 5k on the treadmill and then a half hour swim - the swim is my reward for doing the treadmill I am usually the only person in the pool - its only 15m long but I can happily churn up and down that. They opened the sauna and steam room this week but I am not ready to brave that.
2nd jab in a couple of weeks and then the world should open up a bit more.

Terron

No running here. Due to an after-effect of an after-effect of covid I haven't been able to walk properly for just over a year. But after Wednesday's physiotherapy session now I can. But my legs aren't used to it. Still it is a step forward

Sea_Shell

So nearly 2 years on and it's funny how easy it is to fall into a new routine.    Or is that a rut??!!!    OK so the pandemic hasn't helped, but I think we need to start shaking things up a bit.    Our main problem is we're pretty rubbish at doing things in the afternoon.   We cram everything into our mornings, but then we can't seem to stir ourselves to shut up the house and go and "do", after lunch.   Especially now the weather has warmed up.

So far, it's looking very much like this...

Mondays - Upstairs cleaning
Tuesdays - I go running (maybe food shopping)
Wednesdays - I go swimming (maybe food shopping)
Thursdays - free
Fridays - I go running
Saturdays - clean downstairs (sort and put washing on)
Sundays - I go running

The rest of our general life "stuff" just fits in around the above frame.

How does that compare to your "rock and roll" retirement lifestyles folks??     Are we all just on a different hamster wheel?

But believe me, I don't miss work!!!!!