£40k Windfall Options

snapyou

Hi,
I was lucky to receive a 40k windfall this week.
I am 56,single with a 9 year old daughter. I own my own flat outright(worth 300k).
I earn approx €18000/year.
I have no private pension.
I would like to know my best options.
Would like to use some as an annual holiday(approx £1500).
I would also like to save or perhaps do up my rather dilapidated house.
Suggestions would be great!
Thanks in advance 

Alistair31

No private pension but do you have a work place pension ? I think providing for your future retirement ought to be your priority. 

snapyou

Thanks for the reply.
No work place pension to speak of.

Socajam

I would put 30K into a private pension and use the 10K to decorate the flat.

snapyou

Socajam said:

I would put 30K into a private pension and use the 10K to decorate the flat.

Thanks.  i literally have no idea about pensions.
Can i place that 30 k in a pension in one go?What would be likely return?
Thanks 

coyrls

You can only place £30K in a pension in one go if your total pension contributions will not exceed the amount you earn in the tax year in which you make the contribution.

Albermarle

Can i place that 30 k in a pension in one go?What would be likely return?

If you earn £18K a year , the max you can put in is £14,400 and HMRC will add £3,600 in tax relief , which is the big plus point for investing in a pension . The likely return is variable and could be negative but the longer you leave it the more likely to get a positive return .

The only thing for certain is that if you put zero in your pension , then you will get zero from it and will have to scratch a living from the state pension and benefits.

Have a look at this - it is a government website - never too late to learn:

https://www.pensionsadvisoryservice.org.uk/about-pensions

xylophone

No work place pension to speak of.

Do you mean that you don't have one at all or that you and your employer contribute the minimum?

ratechaser

Albermarle said:

Can i place that 30 k in a pension in one go?What would be likely return?

If you earn £18K a year , the max you can put in is £14,400 and HMRC will add £3,600 in tax relief , which is the big plus point for investing in a pension . The likely return is variable and could be negative but the longer you leave it the more likely to get a positive return .

The only thing for certain is that if you put zero in your pension , then you will get zero from it and will have to scratch a living from the state pension and benefits.

Have a look at this - it is a government website - never too late to learn:

https://www.pensionsadvisoryservice.org.uk/about-pensions

And of course if you are still going to be working in 2021, you can make the same £14,400 pension contribution in the next tax year... 

One clarification needed OP - you said you were earning about €18,000 - did you mean pounds rather than euros? Just checking you're not working/being paid outside of the UK?