Teacher retiring in 3 years - money need investing

Bobon_Time

I have decided to retire from teaching in 3 years time at 56 years old. My pension will be just enough to continue my current lifestyle  (I have no mortgage/debts) but I have money at the moment which is not working for me and I want to invest to increase my monthly pension income in 3 years time when I retire.

£50,000 in premium bonds,

£55,000 (very recent inheritance) sat in bank saving account,

£20,000 in Cash ISA.(not put any money into ISAs this year)

£60,000 in AVC (Prudential),

I also have £200 monthly wage I can invest rather than going into a bank savings account

When I retire I will receive £70,000 in lump sum which will also need investing.

Thanks for any advice.

zagubov

Sorry for your loss.
Have you considered tapering off from your job so there isn't an abrupt end to it which can be a but more disorienting than many would predict?
You may want to continue on a few days per week.
Money, social contact, some routine, less hassle, passing on skills and last but not least, giving youngsters a boost into life, paying more into state pension via NI.

  .

On-the-coast

Very likely your best financial plan (almost risk free) is to put the entirety of your salary into TPS (using any unused previous years’ allowance up to a max of 40k / year - and live of savings for next 3 yrs. 
Or  (depending on rules of your scheme) reduce salary down to national minimum wage level,  or £12570, or NI LEL

Sun-Is-Fun

You could use your cash savings or AVC from 56 rather than taking your teacher's pension, which would be reduced, if you took it at 56. Between now and 56 you could  pay money into a SIPP getting tax relief or use one of the options in the teacher's pension scheme like 'additional pension' to get more pension.

Jimmithecat

If you join the group ‘life after teaching’ on Facebook there are a lot of teachers sharing advice and experiences on there.
Weslyan are also excellent and offer free advice related specifically to the tps.
Check out the phased retirement option to ease yourself into retirement - David Fountain is active on this Facebook page and an excellent YouTube presentation on this.
Good luck!

dunstonh

Retire in 3years - money to invest — MoneySavingExpert Forum
Duplicate thread with some comments on it.  

OldBeanz

Probably worth seeing an IFA as you have £200k which could be invested.
Using your AVC before drawing your TPS pension is likely to be advantageous as it will run down that pension while increasing your CPI +1.5% index linked teachers pension.
You have to be aware of your best year and when the link to CPI +1.5% stops.