Teacher Retirement Planning

luther46

Advice sought planning for retirement.
Both my wife and I are in the Teacher Pensions scheme. To date we have made no investments in AVC or SIPP.
My wife is about to turn 50. As she had 9 years break in service when our kids were small she has only 7 years with a NPA of 60 (+9 so far with NPAs of 65 and 67). I'm 46 and would have 37 years in the scheme by the time I'm 60 (about half NPA 60, the other half 67). 
We are more than happy with the projected income we both hit 67 (and even if we take it a few years earlier than that) but would like to do some additional saving in the next decade so that my wife has the option to retire at 60 and me the same or even at 58 or 59. Our kids should all be through University and mortgage paid off a few years before then.
Having read other threads on here, and done other research, I have come to the following conclusions which I'd value views on from those more financially savvy than me. I fear making a hopelessly naïve decision:

1. It won't be necessary to seek independent financial advice because our situation isn't particularly complex.
2. It would be better to use AVCs or SIPP vs additional investment in the TP scheme as we can draw on it through a fixed term annuity of 3 to 5 years to hold off taking the TP until closer to NPA.
3. I'd favour AVCs over SIPP because while I might get better return, as alluded to previously I'm not financially very savvy, am quite risk averse, would like a solution that I can stick with from once I've set up I can leave alone to do its thing for ten years and would much prefer a model where everything was dealt with through work pay roll rather than self assessment  (makes me sound lazy but I'd call it inexpert and insecure in these matters).
4. Because I am a higher rate tax payer and my wife is it not I should also invest in AVCs to gain as much benefit as possible. 
5. Rather than pay down the mortgage as quickly as possible I should settle on a plan that pays that off when I am 58/59 and invest the difference in the AVCs as the tax break 20/40% dwarves my 2% mortgage rate.

All thoughts appreciated.

Dazed_and_C0nfused

2. It would be better to use AVCs or SIPP vs additional investment in the TP scheme as we can draw on it through a fixed term annuity of 3 to 5 years to hold off taking the TP until closer to NPA

What made you look at a fixed term annuity?

would much prefer a model where everything was dealt with through work pay roll rather than self assessment (makes me sound lazy but I'd call it inexpert and insecure in these matters).

Why do you think Self Assessment would be required?  Don't you already complete one in respect of the HICBC?

My wife is about to turn 50. 
my wife has the option to retire at 60 and me the same or even at 58 or 59. Our kids should all be through University and mortgage paid off a few years before then.

5. Rather than pay down the mortgage as quickly as possible I should settle on a plan that pays that off when I am 58/59 and invest the difference in the AVCs as the tax break 20/40% dwarves my 2% mortgage rate.

Do you earn enough to get the benefit of 40% relief on the full amount you intend on contributing?

tacpot12

While I would tend to agree your situation isn't especially complicated, the different options with the TP make it important that you get some good advice from someone who understands all the different options. 

It is good that you realise that you have a low appetite for risk.

I agree that investing rather than paying down the mortgage makes a lot of sense. You can always change your might if your situation changes your mind. 

JohnWinder

About 1. I think it rather comes down to whether you have the knowledge, skills and attitude (roll those into 'competence') to do the job, than how complex it is. Perhaps you imply that by indicating it looks 'uncomplex' and thus you'd have the competence. 

I don't know the ins and outs of your pension or tax situation, but I would imagine you and your wife would have the information literacy skills to achieve the required knowledge and skills if you don't already have them.

Consider the AVC/morgage issue: it's about understanding tax brackets, some idea of what investment returns ought to be, a bit of spreadsheet work perhaps, and one's innate conservatism or attitude to being a borrower. All of that is bread and butter for someone with your capacity, and to be sure you haven't overlooked something you ask folk online where much experience lies. It should work. If you had a pension locked up in another country, a situation uncommon in the community, you might have concerns that not using a professional could result in you dealing with it poorly.

A couple of books might help? British Master Tax Guide by Cawthron. Tim Hale's Smarter Investing, if you need to understand investing; Jason Butler's 'Wealth Management (FT Guide)'. After a look at those you will be financially savvy, and being risk averse (or risk tolerant) is perfectly compatible with successful investing. The world of business caters for all types because it wants their money, either borrowed or as equity. Those books will have models for 'set up and leave alone safely'.

OldBeanz

You also need to look at all the extra contribution options on the TPS site as you can contribute more to retire earlier (3 years from memory).

luther46

Thank you all for taking the time to reply. All very helpful.

What made you look at a fixed term annuity?

Why do you think Self Assessment would be required?  Don't you already complete one in respect of the HICBC?

Do you earn enough to get the benefit of 40% relief on the full amount you intend on contributing?

I envisaged using a short fixed term annuity from AVC/SIPP to delay taking TP rather than supplementing it once at or near NPA.
I don't claim child benefit now as past top threshold so am not completing self assessment. I don't think I'd be able to contribute enough to take me below that threshold in the short term.