Done with work - new retirement journey

LHW99

Donewithwork1 said:

af1963 said:

How integrated are your finances with your husband's. Do you try to contribute equally or does it not matter if one or other of you is putting in more ?

Your 'regular' spend is about 30K, plus allow something on top for extras like holidays, repairs, cars - total maybe around £40-45K sound reasonable ?

Once both SPs start, you'll *already* have his 26K DB + 2* ( 10600 State Pension)  = 49K, minus tax for your husband, giving about £45K.  But most of it will originate from him. Does this matter to you ?

Hi, well if I went with FAD up to my personal allowance + 25% tax free on top and then state pension in 5 years this would be, in todays terms, £27,833 pa.  His would be £36,913 pa including state pension (in 16 months) so total income at state pension age for both of £64,746 before tax. This not including any income from savings or investments.

We are not bothered about everything being exactly equal as we spend from a joint account whats mine is mine and what's his is mine 

Still worth considering what happens when one of you passes, to make sure the one who remains would have sufficient.

Donewithwork1

LHW99 said:

Donewithwork1 said:

af1963 said:

How integrated are your finances with your husband's. Do you try to contribute equally or does it not matter if one or other of you is putting in more ?

Your 'regular' spend is about 30K, plus allow something on top for extras like holidays, repairs, cars - total maybe around £40-45K sound reasonable ?

Once both SPs start, you'll *already* have his 26K DB + 2* ( 10600 State Pension)  = 49K, minus tax for your husband, giving about £45K.  But most of it will originate from him. Does this matter to you ?

Hi, well if I went with FAD up to my personal allowance + 25% tax free on top and then state pension in 5 years this would be, in todays terms, £27,833 pa.  His would be £36,913 pa including state pension (in 16 months) so total income at state pension age for both of £64,746 before tax. This not including any income from savings or investments.

We are not bothered about everything being exactly equal as we spend from a joint account whats mine is mine and what's his is mine 

Still worth considering what happens when one of you passes, to make sure the one who remains would have sufficient.

Completely agree, absolutely fundamental

Donewithwork1

xylophone said:

whats mine is mine and what's his is mine  

Made me smile - an old gentleman I knew said that the definition of socialism was share and share alike and when my share is gone we'll share yours.....

Thats funny Xylophone   

Donewithwork1

af1963 said:

Hi, well if I went with FAD up to my personal allowance + 25% tax free on top and then state pension in 5 years this would be, in todays terms, £27,833 pa.  His would be £36,913 pa including state pension (in 16 months) so total income at state pension age for both of £64,746 before tax. This not including any income from savings or investments.

If you continued doing drawdown after your state pension starts, yes.  If it turns out that you aren't spending at that level even including the 'extras', there may be no need to continue to withdraw from your pension, or to be taxed on it, once your SP starts. As long as you're both OK with it, you could have about £44K annual spending based on his £37K plus your £10.6K state pension.  And you could dip into your pension as and when needed for extras - or to make sure you use up your full annual allowance.

Yes that's exactly what we plan to do.  Certainly not going to withdraw money and pay tax on it if we don't need it.  As soon as state pension starts pension withdrawal will be scaled right down.