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

Sea_Shell

Kim1965 said:

Can you remind me of your ages? Cannot remember if you have any db pensions to pick up before sp age? 

I'm 51 and DH is 56, as at year end.

DH has DB pensions due to kick in at 65, at about £9k in today's money (indexed, can't remember the exact details - it's up thread, somewhere  )

By the time both SP are added in, we should have ~£25k, in today's money.

Assuming SP exists by the end of 2038!!   and i'm still here!!

zagfles said:

One thing I noticed is the NI class 3 rate (voluntary contributions) is going up with CPI ie 10.1% so if you're going to pay class 3 to buy extra state pension years it may be better to do it before the end of the tax year

I have a separate thread about upping my contributions here... it's on my to-do list for next week!!
 
https://forums.moneysavingexpert.com/discussion/comment/79642117/#Comment_79642117

Audaxer

Sea_Shell said:

Assuming SP exists by the end of 2038!!   and i'm still here!!

I'm fairly sure the SP will still exist by then, but you might have to wait until age 68 if you are currently due to get it at 67. 

barnstar2077

Audaxer said:

Sea_Shell said:

Assuming SP exists by the end of 2038!!   and i'm still here!!

I'm fairly sure the SP will still exist by then, but you might have to wait until age 68 if you are currently due to get it at 67. 

Possibly 70 the way things are going! :  )

frugal90

Any changes to ISAs would likely be to future allowances. Not sure they could do anything about anything already sheltered. Although, who knows!!! It is a big part of our retirement planning. We have a three pronged approach. DB pensions, income from ISAs then maxing out state pension . 

RNV

Hello, re Budget impacts summarised above - has anybody seen any small prints suggesting earlier enforcement of access to SIPP at 57?

Im 55 in 2027, after April. Trying to figure out whether still qualify for  55?

thanks!

QrizB

Sea_Shell said:

Kim1965 said:

Can you remind me of your ages? Cannot remember if you have any db pensions to pick up before sp age? 

I'm 51 and DH is 56, as at year end.

DH has DB pensions due to kick in at 65, at about £9k in today's money (indexed, can't remember the exact details - it's up thread, somewhere  )

By the time both SP are added in, we should have ~£25k, in today's money.

I'm older than you but younger than DH, while Mrs QrizB is your age. I've a DB pension with a NPA of 65 too, but am considering taking it early (with an actuarial reduction) since between it and two SPs we'll potentially have too much income once we get to 67/68.

Have you thought about this at all?

Sea_Shell

QrizB said:

Sea_Shell said:

Kim1965 said:

Can you remind me of your ages? Cannot remember if you have any db pensions to pick up before sp age? 

I'm 51 and DH is 56, as at year end.

DH has DB pensions due to kick in at 65, at about £9k in today's money (indexed, can't remember the exact details - it's up thread, somewhere  )

By the time both SP are added in, we should have ~£25k, in today's money.

I'm older than you but younger than DH, while Mrs QrizB is your age. I've a DB pension with a NPA of 65 too, but am considering taking it early (with an actuarial reduction) since between it and two SPs we'll potentially have too much income once we get to 67/68.

Have you thought about this at all?

We have, but we go round in circles a bit with deciding what's "best".

At the end of the day, DH knows that he'll pay 20% tax eventually, but won't hit the higher rate.   Neither will I. *

So as long as he maximises his PA each year, won't it all "come out in the wash" eventually?

Let's hope we're not just shuffling deckchairs on the Titanic 😉



* Assuming nothing drastic is done with the rates/rules/allowances.  Who knows!! 😲

NedS

Sea_Shell said:

QrizB said:

Sea_Shell said:

Kim1965 said:

Can you remind me of your ages? Cannot remember if you have any db pensions to pick up before sp age? 

I'm 51 and DH is 56, as at year end.

DH has DB pensions due to kick in at 65, at about £9k in today's money (indexed, can't remember the exact details - it's up thread, somewhere  )

By the time both SP are added in, we should have ~£25k, in today's money.

I'm older than you but younger than DH, while Mrs QrizB is your age. I've a DB pension with a NPA of 65 too, but am considering taking it early (with an actuarial reduction) since between it and two SPs we'll potentially have too much income once we get to 67/68.

Have you thought about this at all?

We have, but we go round in circles a bit with deciding what's "best".

At the end of the day, DH knows that he'll pay 20% tax eventually, but won't hit the higher rate.   Neither will I. *

So as long as he maximises his PA each year, won't it all "come out in the wash" eventually?

Let's hope we're not just shuffling deckchairs on the Titanic 😉



* Assuming nothing drastic is done with the rates/rules/allowances.  Who knows!! 😲

Yes, I think it's about smoothing income in retirement so you aren't struggling to make ends meet for 10 years (55-65) and then have more money than you know what to do with post 65 as DB + SP kick in (we are in the same position!).* Rather than taking DBs early, we will potentially raid the SIPPs more heavily as we approach DB/SP age (assuming the security of DB income still looks as attractive then as it does now), but we are lucky to have that flexibility in our plan.

If you're "shuffling deckchairs on the Titanic" then the ship is likely going down regardless of whether you smooth income or not (I do love that phrase!)

* Assuming we both live

Sea_Shell

Flexibility is key.  Based on a mixed pot approach, of:

DB

SP

DC

S&S ISA

Cash

In no particular order 😉

Kim1965

What sort of reduction for taking dh db pension early?
 Ive got a 7k db which pays at 60, the reduction was minimal last time i looked at it. MIGHT take it at 58 next birthday 

 If you two preserve your wealth until sp kicks in you will be very comfortable based on your spend s. I would have thought some gaurenteed income before sp would have been attractive.