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

westv

Sea_Shell said:

jimi_man said:

Sea_Shell said:

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Well, my plan is to reinvest it back into my (our) ISAs.

Be about £30k.




ETA - I might actually SPEND some of it !!! 😲😲😉

On what?????

I don't know.   It's still a way off.

Might treat myself to a loaf of bread maybe!! 😉

What? Nothing for your loyal thread reading fans?! 

Audaxer

Albermarle said:

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Or you have something specific that you wish to spend it on.

It seems that many people take it just because they can, without any thought about what to do with it and leave it languishing in a current or savings account for years,

Also taking it in stages can help with efficient income tax planning in certain situations.

If you take it all out and reinvest it in similar funds, then you have not really achieved anything so why bother. Unless you have an LTA issue, then it can be a good idea.

Agree no point in just taking out the 25% tax free to invest in similar funds, but for those that have not used their personal tax allowance, it is a good plan to drawdown up to their personal allowance plus the tax-free element of that, and if not spending it, to reinvest it in an S&S ISA. It can amount to approximately £16,500 per year, so good to get as much of it as possible into an S&S ISA before any DB or SP kicks in using up their personal tax allowance.

quirkydeptless

Sea_Shell said:

Might treat myself to a loaf of bread maybe!! 😉

..........

sheslookinhot

Albermarle said:

eastcorkram said:

Taking the 25% tax free usually seems to be frowned upon on here anyway doesn't it? Unless you've got expensive debt to pay off?

Or you have something specific that you wish to spend it on.

It seems that many people take it just because they can, without any thought about what to do with it and leave it languishing in a current or savings account for years,

Also taking it in stages can help with efficient income tax planning in certain situations.

If you take it all out and reinvest it in similar funds, then you have not really achieved anything so why bother. Unless you have an LTA issue, then it can be a good idea.

Or not taking a TFLS might otherwise have you pay HR tax.

Kim1965

There has been so much coverage of the 600000 boomers who have retired early  in the last 2 yrs. Driving wage nflation, causing skill shoertages. So apart from taxing these people back to work, how else can early retirees be encouraged back into economic activity for the greater good...? I am starting to feel guilty about thinking of retirement at 58 lol

SouthCoastBoy

They could increase the qualifying years for state pension, maybe back up to 44 years

QrizB

Kim1965 said:

There has been so much coverage of the 600000 boomers who have retired early  in the last 2 yrs. Driving wage nflation, causing skill shoertages.

The best thing for the economy is for everyone to work until they drop. However that ceased to be necessary for the individual when we moved on from subsistence farming.

Those 600k boomers can spend their assets and keep Gens X to Z gainfully employed supplying them with goods and services. If wages rise it will just transfer their assets to the later generations at a faster rate.

Beddie

Kim1965 said:

There has been so much coverage of the 600000 boomers who have retired early  in the last 2 yrs. Driving wage nflation, causing skill shoertages. So apart from taxing these people back to work, how else can early retirees be encouraged back into economic activity for the greater good...? I am starting to feel guilty about thinking of retirement at 58 lol

I'm mid 50s and have in effect retired, but not yet drawing any pensions. I'd go back to work, but 3 days per week max and not for minimum wage. But that's all there is where I live - entry level "hard" jobs such as warehouse pickers, food processing, care work etc. I literally couldn't be bothered, so unless I need to go back to work I won't.

Sea_Shell

Kim1965 said:

There has been so much coverage of the 600000 boomers who have retired early  in the last 2 yrs. Driving wage nflation, causing skill shoertages. So apart from taxing these people back to work, how else can early retirees be encouraged back into economic activity for the greater good...? I am starting to feel guilty about thinking of retirement at 58 lol

Ah, now you see that doesn't include me!!   I retired over 3 years ago, and I'm not a boomer.   

We'd already "seen the light" before Covid.

What would it take to encourage me back to work..."all the tea in China" might do it.   But then again, no.

If our plan goes south, then there probably wouldn't be an economy left to get a job in!!

Staffordia

Retired Gen X here, the B of E chappy can take a hike. Working until I dropped was never in my plans, even before Covid. A grateful millennial can have the job I vacated.