Forum Home» Pensions, Annuities & Retirement Planning

Starting to think about retirement planning - Page 3

New Post Advanced Search

Starting to think about retirement planning

28 replies 1.2K views
13»

Replies

  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    Your emergency fund seems low given you've both your home and a rental property to maintain. 
    Thank you, I do want to increase it but not sure what the right balance is. Tbh I feel I have been quite tunnel vision with the mortgage which is something I realise I need to change. I have never really though of having the BTL to support as such as I felt it would be unlikely for both to need something at the same time but will have a rethink. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    LHW99 said:
    And I would also suggest a quick calculation to work out what each of you would have left if one of you passes before the other (quite likely). DC pension pots can pass between spouses, DB ones usually have provision for a spouse, but the level can vary. As you are still fairly young, that could include checking whether you have sufficient term or other life insurances on both lives.
    Thank you so much for taking the time to help, I really appreciate it. I am pretty sure we are covered but definitely something to double check. We have also sorted wills. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    crv1963 said:
    Just another thought- you may well best benefit from reducing the mortgage over-payments to increase pensions savings. Then use all or part of the TFLS to clear the mortgage. Slightly different for us as my taking my DB Pension doesn't prevent me still saving into a DC pension so we used part of my TFLS to finish the mortgage, it is all about doing what feels right for you. We did always overpay the mortgage simply rounded up to the nearest whole figure.

    Also don't forget to take the SP into account in your plans- it will be a significant proportion of your income, depending on your number.

    A couple of links I've found- Google is your friend here! --
    https://www.standardlife.co.uk/c1/pensions-and-retirement/saving-for-retirement/pension-calculator.page
    https://www.which.co.uk/money/pensions-and-retirement/options-for-cashing-in-your-pensions/overview-of-options-for-cashing-in-your-pension/pension-calculator-how-much-money-youll-have-a1jxm4d809k8
    Fabulous, thank you :-) 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭

    Apologies if I have missed something in this thread but it is not clear to me what your housing situation is.  You have a BTL property which is mortgaged.  What about the property you live in? 
    Hi, we have 2 mortgages. The residential mortgage is 146k and the BTL is 135k. The surplus each month from the BTL income after paying for the mortgage on that property is £350.

    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭

    I was wondering this.   If you already own a property (either of you), then the LISA would only be something you could pay in until you are 50, and then only *access* when you are 60 - for long term saving with a little more flexibility, I would have thought  a pension would generally be a better choice.
    If you are using the LISA to pay for your first home, then crack on!
    Pensions are typically the best way to save long-term - yes, a LISA gets the government money added (& as said above, be sure to NOT chose a cash LISA if you want long term growth), but you have already paid tax on that, whereas a pension has tax benefits on the way in.
    Yes, I hadn't thought of it that way, so thank you for mentioning it. We do have 2 properties jointly. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    I rarely post and I've had a user name change recently (could not log into the new site with my old details) but I'm a committed lurker and have been for years. My main financial focus is retirement planning nowadays, but I originally joined as a mortgage free wannabe... though in time I came to realise that it wasn't just about mortgage freedom for me but financial freedom. 

    I have a partner that is perfectly willing to cooperate with my retirement plans as long as I never utter the words 'in today's money' in his presence. He wants to retire at 55 without doing any of the thinking to get himself there... but this works in my favour as I'm in control! 

    When I joined this forum the best first step I took (outside of collating all our existing pension savings information) was to work out what I wanted my retirement income to be and the age I wanted to retire.  The number thread was fantastic help, it's already been recommended but I thought I'd include the link:

    https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number/

    Once I'd decided how much I needed and ideally when I wanted to retire, I could work out the gaps in our pension savings. I haven't gone down the basics, comfortable and luxury routes - but I would say I'm aiming for upper comfortable for us as a couple. 

    I started seriously thinking about retirement planning at the age of 40 (5 years ago) and at that point I didn't really know what we had saved,  what retirement income I wanted and whether it was even remotely feasible to retire at 55.  Now I have a basic spreadsheet of our various pension income streams from age 55 - 80. I know which of those income streams are 'in the bag' so already guaranteed and I don't need to pay in anything else, which ones are on track and which income streams are my savings gaps. 

    I would second doing this as tax efficiently as possible also. My husband will probably always fall just under or bang on the tax allowance threshold (designed this way) whereas I will definitely pay tax from the age of 60.  You have 2 x personal allowances and its important you make use of them. 



    Thank you for the link and your post. It's nice to see that you had similar thought around this point and have come so far. It is a bit of a blur atm but everyone has been so useful that I'm really pleased I asked for help. :-) 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    Thank you all for your really helpful responses. :-) 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • edited 13 July at 11:28PM
    cloud_dogcloud_dog Forumite
    5.2K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    edited 13 July at 11:28PM

    I was wondering this.   If you already own a property (either of you), then the LISA would only be something you could pay in until you are 50, and then only *access* when you are 60 - for long term saving with a little more flexibility, I would have thought  a pension would generally be a better choice.
    If you are using the LISA to pay for your first home, then crack on!
    Pensions are typically the best way to save long-term - yes, a LISA gets the government money added (& as said above, be sure to NOT chose a cash LISA if you want long term growth), but you have already paid tax on that, whereas a pension has tax benefits on the way in.
    Yes, I hadn't thought of it that way, so thank you for mentioning it. We do have 2 properties jointly. 
    Just a point to note... The benefit on contributions benefit the same between a LISA and a pension (for a non SS BRT payer).

    The benefit of the LISA over the pension is that you can withdraw the money in one go or in phases but, without any income (or capital gains) tax considerations.  With the pension 25% is tax free and the remaining 75% is subject to tax at your standard rate based on your   personal allowance/income.

    Downside of the LISA is penalty free access age is 60, whilst a pension can be accessed at 5 (currently).
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support