Penguins, pelicans and the inland revenue...

Workerdrone

Albermarle said:

Are you saying I need to pull all that excess cash out (and pay the appropriate income tax as I do so) Before 75 in order to prevent the LTA charge on the excess. 

Yes , no total escape from HMRC once you get into this wealth bracket. You just have to think of all the tax relief you gained earlier.

You make a good point. It would be more palatable if I'd benefitted from 40% on the way in :-)

Workerdrone

Albermarle said:

Are you saying I need to pull all that excess cash out (and pay the appropriate income tax as I do so) Before 75 in order to prevent the LTA charge on the excess. 

Yes , no total escape from HMRC once you get into this wealth bracket. You just have to think of all the tax relief you gained earlier.

I prefer option 1.

Although, the LTA in general feels like an unfair penalty on successful investment. I can understand the limit on tax relief on the way in to stop people gorging on it. But we lifetime 20% tax supersavers get hit for prudence. Ho hum :-(

Secret2ndAccount

p00hsticks said:

Competely off topic, but as the OP started it....

...

I thought you were going to ask what kind of car the OP was planning to buy.
OP, what kind of car do you have in mind? Far too little talk of buying expensive cars in this forum.

Dazed_and_C0nfused

Secret2ndAccount said:

p00hsticks said:

Competely off topic, but as the OP started it....

...

I thought you were going to ask what kind of car the OP was planning to buy.
OP, what kind of car do you have in mind? Far too little talk of buying expensive cars in this forum.

As it's coming via pensions freedom/flexibilities surely it's got to be a Lamborghini!

Workerdrone

Secret2ndAccount said:

p00hsticks said:

Competely off topic, but as the OP started it....

...

I thought you were going to ask what kind of car the OP was planning to buy.
OP, what kind of car do you have in mind? Far too little talk of buying expensive cars in this forum.

Well, I’m glad not to be judged and appreciate your interest. Do you remember the song in the 80’s. Dignity by deacon blue. About the bin man who saves and buys a boat for retirement. Well I feel a lot like that.  My journey started in1994 when I was wondering round London and stumbled across the McLaren shop in park lane near the Dorchester. I’d never seen a more beautiful car and set my heart on one day owning the marque. Luckily for me a McLaren automotive started producing road cars so one day I hope to own a McLaren 570s spiyder with a stretch goal of a 720s spyder.

Secret2ndAccount

Dazed_and_C0nfused said:

 As it's coming via pensions freedom/flexibilities surely it's got to be a Lamborghini!

That's what I was thinking

Secret2ndAccount

Workerdrone said:

Well, I’m glad not to be judged and appreciate your interest. Do you remember the song in the 80’s. Dignity by deacon blue. About the bin man who saves and buys a boat for retirement. Well I feel a lot like that.  My journey started in1994 when I was wondering round London and stumbled across the McLaren shop in park lane near the Dorchester. I’d never seen a more beautiful car and set my heart on one day owning the marque. Luckily for me a McLaren automotive started producing road cars so one day I hope to own a McLaren 570s spiyder with a stretch goal of a 720s spyder.

Beautiful cars both. I have some insider knowledge in this area. I would just advise you to budget for a comprehensive warranty each year. That will be in the high 000's, but if you elect to take your chances, the cost of repairs is heinous, even by supercar standards.

Workerdrone

Secret2ndAccount said:

Workerdrone said:

Well, I’m glad not to be judged and appreciate your interest. Do you remember the song in the 80’s. Dignity by deacon blue. About the bin man who saves and buys a boat for retirement. Well I feel a lot like that.  My journey started in1994 when I was wondering round London and stumbled across the McLaren shop in park lane near the Dorchester. I’d never seen a more beautiful car and set my heart on one day owning the marque. Luckily for me a McLaren automotive started producing road cars so one day I hope to own a McLaren 570s spiyder with a stretch goal of a 720s spyder.

Beautiful cars both. I have some insider knowledge in this area. I would just advise you to budget for a comprehensive warranty each year. That will be in the high 000's, but if you elect to take your chances, the cost of repairs is heinous, even by supercar standards.

It's good advice. I am a long time lurker on the Mclaren owners boards and read many a thread on repairs with both cars. At present my heart is set on one of the V8's but by the time retirement rolls around it may be something newer with the full electric drivetrain coming online in 2025. Mechanically that simplifies the vehicle, no oil, fuel injection system, timing belt, valves, spark plugs. Occams razor, less to go wrong. But your point on warranty and maintenance costs is well made. If I stick with the petrol I doubt it would be possible to pick up a warranty on a 15 year old car (Even if its been a semi garage queen). A very reliable and trustworthy independent mechanic coupled with me sourcing the after market parts seems to be the best way. 

TARDIS

Do your figures for your wife’s NHS pension take into account the McCloud judgement? ie at retirement she will have the choice of the 7yr remedy period (2015-22) being in either the 1995 or 2015 scheme.

Might increase her pension and lump sum at 60 (if you’ve not already included it).

Workerdrone

TARDIS said:

Do your figures for your wife’s NHS pension take into account the McCloud judgement? ie at retirement she will have the choice of the 7yr remedy period (2015-22) being in either the 1995 or 2015 scheme.

Might increase her pension and lump sum at 60 (if you’ve not already included it).

Thanks,

I hadn't factored that in. I was aware off the judgement and as I understand it Upon retirement you will be presented with an illustration of both options and can choose which is most beneficial to you. Currently the NHS work ESR portal total rewards statement doesn't give any sort of illustration of this. There is no automatic lump sum in the 2015 scheme

Luckily since 2015 Mr Workerdrone has gone from being a top band 5 to a band 7 so a decent pay bump. She will likely see her career out in this role.

I've just run a back of the tab packet calculation on this using the extra 7 years under the 1995 section which I believe is 1/80th accrual based on final salary. I've used her current pay although in likelihood it will be at least 4k higher in retirement

This results in an annual pension of £11015.67 and a 1995 section lump sum of £33047
Thats an annual gain of £1341.19 on the pension and a gain of £4023.57 on the lump sum.

Her current 2015 scheme is showing £3844.22pa but obviously she can't access that until 67 and no lump sum

Im having difficulty doing the comparison. Is it as simple as saying an extra £1341.19 pa for 7 years (£9388.33) +£4023.57 lump sum is a value of £13411.90

vs

£3844.22pa from 67 but ongoing.

I reckon that if she stuck to the 2015 section it would take around 3.48 years to make her equal to taking it under the 1995 section. But then £3844.22 extra per year from 67 and missing the £4023.57 bonus still seems like the better deal than £1341.19 per year.

Or am I completely reading it wrong.