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Does my financial planning for early retirement make sense?- ideas and comments welcome (first post)
Comments
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Thank you Dazed & Thrugelmir - do people actually take LGPS and associated AVC earlier with the percentage reduction each year.(mine is a £2,700 per year reduction in total)..I appreciate everybody's circumstances are different but I have the security blanket of the current pension I receive & hopefully state pension. Perhaps wrongly I see in contributing I have saved tax/NI and had tax relief applied & accrued interest/fund return over time....so a reduction for taking early isn’t eating the additionally applied money up and I get a tax free lump sum (albeit I don’t know how this lines up against LGPS pot as I understand pot size & a percentage us applied?).. or am I being cavalier in my approach/thoughts?
Oh and am I sensible in contributing to a stakeholder or reduce & focus on the AVC? Does the taking pot over 5 years make sense....I have forgotten the terminology is it a reduced term annuity? This would be in addition to early LGPS/AVC good funds at a reasonable age to spend....with state pension contributing 7 later.... this being all approx per annum
£23,000 plus current pension - index linked
£7,500 LGPS (potential promotion ups this) index linked
£6,000 stakeholder for 5 years (60 - 65)
AVC lump tax free
state pension at 67.....
Does it seem like a sensible plan market performance dependant re AVC and Stakeholder?
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I welcome anyone else’s thoughts as well....stakeholder or AVC to concentrate on extra contributions, bearing in mind I need the stakeholder at 60 as thinking now I should wait on claiming LGPS until NRA with the AVC. Or should I consider other options SIPP?
The stakeholder is medium risk and I am was not involved in the choice of investment......I would like as best as I can to try and make some decisions before 60 creeps up on me....and welcome any suggestions please,,,0
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