Money to invest for retirement - what would you do?

UJan

Hello.

Please can anyone make any useful suggestions as to what to do with some cash?

I have £80k to invest towards funding retirement; that money is in Euros at the moment. I'm married, no kids, and no mortgage; 54 years old and OH is 53. I have a personal private pension plan which "matures" at age 65, as does OH; both are money purchase schemes and we are each contributing and will continue to do so - neither of us contributes (or has contributed) £40k p.a and we're not near our lifetime limits.. Self and are OH looking to retire at 60 / 61 and the idea for the £80k (plus, hopefully, investment growth on it) is that it part-funds our retirement between ages 60 / 61 and 65. Our appetite for risk is medium or low medium. We aleady have a rainy day fund in cash.

Given the above, what would you do with that £80k....?

Many thanks.

xylophone

I have a personal private pension plan which "matures" at age 65, as does OH; both are money purchase schemes and we are each contributing and will continue to do so -

"Matures"? You could nevertheless access these pensions at any time after age 55?

Do you have workplace pensions?

cloud_dog

UJan said:

Hello.

Please can anyone make any useful suggestions as to what to do with some cash?

I have £80k to invest towards funding retirement; that money is in Euros at the moment. I'm married, no kids, and no mortgage; 54 years old and OH is 53. I have a personal private pension plan which "matures" at age 65, as does OH; both are money purchase schemes and we are each contributing and will continue to do so - neither of us contributes (or has contributed) £40k p.a and we're not near our lifetime limits.. Self and are OH looking to retire at 60 / 61 and the idea for the £80k (plus, hopefully, investment growth on it) is that it part-funds our retirement between ages 60 / 61 and 65. Our appetite for risk is medium or low medium. We aleady have a rainy day fund in cash.

Given the above, what would you do with that £80k....?

Many thanks.

Are you paid by Salary Sacrifice?

UJan

Thanks for comments. Yes, could access those post 55 - don't have workplace pensions. No, not paid by salary sacrifice.

Regards

cloud_dog

Based on you wishing to retire early, I would probably look to deposit as much of the money in to each of your own pensions.  This assumes you have no other need for the money.  The reason I suggest this is that with you both retiring early you will be able to withdraw a reasonable amount each without paying income tax.  If you were to both utilise the uncrystallised method of drawing down your pensions (UFPLS), you would be able to draw £16666 each, each year without incurring taxation (based on current allowances).

UJan

Thanks clouddog. Regards

Albermarle

cloud_dog said:

Based on you wishing to retire early, I would probably look to deposit as much of the money in to each of your own pensions.  This assumes you have no other need for the money.  The reason I suggest this is that with you both retiring early you will be able to withdraw a reasonable amount each without paying income tax.  If you were to both utilise the uncrystallised method of drawing down your pensions (UFPLS), you would be able to draw £16666 each, each year without incurring taxation (based on current allowances).

I think something  needs to be added- deposit as much of your money in each of your own pensions as long as you both have enough relevent earnings that you will gain tax relief on the contributions , that will be on top of current contributions .
Otherwise it maybe necessary to spread out the extra contributions over more than one tax year.

UJan

thanks albermarle