Fed up with working

Krakkkers

This thread has drifted.

cfw1994

Secret2ndAccount said:

Why do people keep telling the OP to carry on working? He's got enough resources to draw 30k per year for life, and has declared that he's fed up with working. There is no need to obsess over the NI year. If the OP has earned 6400 since April, then the NI year could already be full. If not, it will cost no more than a few hundred to top it up. Why would you work 6 months for 200 quid?
If he was already retired would you be telling him he needs to go back to work?

Yeah, caffeine aside....I'd listen to the secret second account here!

Plan for how you broadly want to spend your time after jacking it in.....then crack on!

I would check on the state pension - it might be you already have the full year paid up, or perhaps need to work one or two more months, & I imagine you have notice to give....

Good luck!

Parking_Trouble

Krakkkers said:

DB pension is deferred so can't make any payments into that.
Hoping for an interest rate rise in September and beyond to fix my savings long term at 4% which could bring me £500 a month.

Could you put more into the DC pension and get the tax relief on it, assuming you haven't used up your £40k allowance (plus rollover) 
Inflation will erode the cash pretty quickly at current rate.

Krakkkers

Not as fast as Aegon are eroding my DC pension.

JoeCrystal

You can't blame Aegon for that. You are the one who made the choice on what it get invested in. What is the fund btw?

Albermarle

Krakkkers said:

Not as fast as Aegon are eroding my DC pension.

You have to look at investments long term. If you look back over the last ten years you should see some good growth above inflation ( something you will never get with cash savings ) despite Covid and the current turbulence.

Krakkkers

Can you invest the Aegon pension in interest paying fixed bonds as i would be happy with 4% or so and no downside.

Albermarle

Krakkkers said:

Can you invest the Aegon pension in interest paying fixed bonds as i would be happy with 4% or so and no downside.

If you mean can you have savings/fixed interest accounts inside your pension. There are some more specialised products that allow this, but most do not. Almost certain that Aegon do not have this facility.

would be happy with 4% or so and no downside.
The value of your money going down every year due to inflation is quite a big downside.

Krakkkers

Worse than £159k to £138k in 2 years?
I am 58 and looking to live on this and 3 or 4% growth rather than losses are what i need.

Albermarle

Krakkkers said:

Worse than £159k to £138k in 2 years?
I am 58 and looking to live on this and 3 or 4% growth rather than losses are what i need.

I would guess though that in the previous ten years, it went up a lot more than it went down in the last two years? Investing is a long term game.

Basically if you are likely to spend the majority of the money in the next few years, then having it in a savings account is not such a bad idea. However if you want the money to last long term, say 10, 20 or even 30 years, it would not be a very good strategy.