Nearly 3 Years On..
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Dew_2
Posts: 35 Forumite
Hi Everyone
On this rainy BH I thought I'd give an update on these two threads I started in 2021 and 2022 to show the direction of travel and our decision to PTT (pull the trigger!).
Are we on the right track? Advice welcome
Me:
55. Earn £49,950 plus £4k car allowance. UPDATE: 58. EARN £62K
£275k in savings from recent house sale (split across different savings accounts/premium bonds) UPDATE: £345K SAVINGS IN SAVINGS, USAS, PREMIUM BONDS)
£248k in SIPP - I pay in £600 gross a month UPDATE: £287K - I PAY IN £900 A MONTH
£20k in work defined contribution (non contributory) pension. Work pays in £468 a month UPDATE: £33K WORK PAYS IN £508 A MONTH
Fiance:
56. Earns £51,500 UPDATE: 59 EARNS £49,500 PLUS £400 A MONTH LGPS PENSION
House worth c£375k no mortgage (which we're living in) UPDATE: HOUSE WORTH £400K
Has defined benefit pension
Plan:
Fiance retires at 60 to do up current house prior to selling
I retire at 60 (about a year later)
We buy a house outright for c£600k from the sale of his house and my £275k savings plus c£40k which I'll save between now and then
At 67:
Both will have full state pensions
He will have £14k p.a. from db pensions UPDATE: £15K P.A.
I'll have c£11k p.a.from dc pensions UPDATE: 12 P.A.
On this rainy BH I thought I'd give an update on these two threads I started in 2021 and 2022 to show the direction of travel and our decision to PTT (pull the trigger!).
Are we on the right track? Advice welcome
Me:
55. Earn £49,950 plus £4k car allowance. UPDATE: 58. EARN £62K
£275k in savings from recent house sale (split across different savings accounts/premium bonds) UPDATE: £345K SAVINGS IN SAVINGS, USAS, PREMIUM BONDS)
£248k in SIPP - I pay in £600 gross a month UPDATE: £287K - I PAY IN £900 A MONTH
£20k in work defined contribution (non contributory) pension. Work pays in £468 a month UPDATE: £33K WORK PAYS IN £508 A MONTH
Fiance:
56. Earns £51,500 UPDATE: 59 EARNS £49,500 PLUS £400 A MONTH LGPS PENSION
House worth c£375k no mortgage (which we're living in) UPDATE: HOUSE WORTH £400K
Has defined benefit pension
Plan:
Fiance retires at 60 to do up current house prior to selling
I retire at 60 (about a year later)
We buy a house outright for c£600k from the sale of his house and my £275k savings plus c£40k which I'll save between now and then
UPDATED PLAN:
We're PTTing at the end of December and have booked to go on a 4 month world cruise.
Then we'll sell his house and buy in a different location. £600k on house plus £20k on moving costs split between us
At age 60 he'll have:
£100k savings
£8k p.a. defined benefit pension UPDATE: £5K P.A.
At age 60 I'll have:
Tax free lump sum from whatever personal pension has generated c£90k?l UPDATE: I WON'T TAKE A LUMP SUM. I WILL HAVE £36K IN ISAs AFTER PAYING FOR MY PART OF THE HOUSE / BALANCE ON THE WORLD CRUISE
At age 60 he'll have:
£100k savings
£8k p.a. defined benefit pension UPDATE: £5K P.A.
At age 60 I'll have:
Tax free lump sum from whatever personal pension has generated c£90k?l UPDATE: I WON'T TAKE A LUMP SUM. I WILL HAVE £36K IN ISAs AFTER PAYING FOR MY PART OF THE HOUSE / BALANCE ON THE WORLD CRUISE
At 67:
Both will have full state pensions
He will have £14k p.a. from db pensions UPDATE: £15K P.A.
I'll have c£11k p.a.from dc pensions UPDATE: 12 P.A.
I did move from Aegon to Fidelity. Most of my SIPP is in a world tracker with c£15k in a Gold tracker. I also have £45k sitting in cash after I cashed in a very poor performing Rueffer fund. I'll wait till markets drop a bit before feeding most of it back into my world tracker. I'll leave some as cash in there for accessing as cash if markets crash.
We're aiming for £3k a month net between us before and after state pension age. We're both in stressful jobs (I can feel mine having a physical effect on me) and we are ready to retire!
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Comments
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Congrats on retiring soon, and I hope your 4 month world cruise is amazing.
I'm not a fan of investing in gold, though you don't have a big chunk of your SIPP there so it probably won't make a big difference either way.
I find your post (I haven't read your previous threads) a bit difficult to follow, hopefully you have enough invested to reliably get £3k a month. Just remember that it's worth having some lower risk investments (or even cash in your SIPP and elsewhere) to ensure you're not selling investments that are experiencing a downturn.1 -
El_Torro said:Congrats on retiring soon, and I hope your 4 month world cruise is amazing.
I'm not a fan of investing in gold, though you don't have a big chunk of your SIPP there so it probably won't make a big difference either way.
I find your post (I haven't read your previous threads) a bit difficult to follow, hopefully you have enough invested to reliably get £3k a month. Just remember that it's worth having some lower risk investments (or even cash in your SIPP and elsewhere) to ensure you're not selling investments that are experiencing a downturn.
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If your fiance has savings (or you are comfortable lending him some of yours) your situation is crying out for him to park almost all of his taxable income before he retires into a SIPP or PP. By all means leave it in cash / money market funds to avoid any risk, but he's going to have possibly 7 tax years with £7.5k pa of unused personal allowance going begging.
That means he could pay £56k into a pension, have it made up to £70k by HMRC and draw it all back out tax free at £10k pa (£7.5k taxable within PA, £2.5k tax free).2 -
Triumph13 said:If your fiance has savings (or you are comfortable lending him some of yours) your situation is crying out for him to park almost all of his taxable income before he retires into a SIPP or PP. By all means leave it in cash / money market funds to avoid any risk, but he's going to have possibly 7 tax years with £7.5k pa of unused personal allowance going begging.
That means he could pay £56k into a pension, have it made up to £70k by HMRC and draw it all back out tax free at £10k pa (£7.5k taxable within PA, £2.5k tax free).0 -
Dew_2 said:Triumph13 said:If your fiance has savings (or you are comfortable lending him some of yours) your situation is crying out for him to park almost all of his taxable income before he retires into a SIPP or PP. By all means leave it in cash / money market funds to avoid any risk, but he's going to have possibly 7 tax years with £7.5k pa of unused personal allowance going begging.
That means he could pay £56k into a pension, have it made up to £70k by HMRC and draw it all back out tax free at £10k pa (£7.5k taxable within PA, £2.5k tax free).
I hope you have a wonderful time on your cruise.1 -
Many thanks Triumph 🙂0
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