Maximising 8 years before retirement at 60

SilverOx

Good morning,

I have set myself a goal of retiring at 60🤞.
I have a couple of company pensions that will support this.

I wanted to canvass some opinions on the next eight years (from next year) where I will have approx £500 spare each month to invest with the goal of generating a monthly income in addition to my pensions.

Thanks.

eskbanker

Assuming you have enough headroom with contribution allowances relative to earnings, another pension, such as a SIPP, is likely to be the most beneficial route, given the tax advantages and wide range of investment options.

Mark_d

I would invest the money in a fund such as VANGUARD GLOBAL EQUITY INCOME.  Make in the investment inside an ISA if you have not used all your ISA allowance.

Dazed_and_C0nfused

Mark_d said:

I would invest the money in a fund such as VANGUARD GLOBAL EQUITY INCOME.  Make in the investment inside an ISA if you have not used all your ISA allowance.

Why an ISA over a pension?

Based on the, admittedly limited, info the op has provided there's nothing to suggest they won't benefit from the usual 6.25% advantage of pension over ISA.

thunderroad88

£500 a month isn’t going to produce much income. I assume you mean you want to take income in 8 years time, not right away. In which case, I’d put it into an accumulating global index fund with the aim of having a larger critical mass of capital in 8 years time. You could then switch it into an income producing dividend fund or high income fund or take gains as income and leave to grow…depending on your income requirements at that time. All within an ISA of course…

Dazed_and_C0nfused

thunderroad88 said:

£500 a month isn’t going to produce much income. I assume you mean you want to take income in 8 years time, not right away. In which case, I’d put it into an accumulating global index fund with the aim of having a larger critical mass of capital in 8 years time. You could then switch it into an income producing dividend fund or high income fund or take gains as income and leave to grow…depending on your income requirements at that time. All within an ISA of course…

Why of course?

ColdIron

SilverOx said:

I wanted to canvass some opinions on the next eight years (from next year) where I will have approx £500 spare each month to invest with the goal of generating a monthly income in addition to my pensions.

Without knowing your wider circumstances, if you are looking for income in retirement then pension contributions are the obvious choice for most. Either into your existing pension(s) or a SIPP.

What rate of tax are you paying?

Mark_d said:

I would invest the money in a fund such as VANGUARD GLOBAL EQUITY INCOME.  Make in the investment inside an ISA if you have not used all your ISA allowance.

Pensions beat ISAs for most. There are many choices for income but that one wouldn't be high on my list and OP is looking for income in 8 years time not now, plenty of time to make that decision

thunderroad88 said:

All within an ISA of course…

It's not obvious to why 'of course'

penners324

thunderroad88 said:

£500 a month isn’t going to produce much income. I assume you mean you want to take income in 8 years time, not right away. In which case, I’d put it into an accumulating global index fund with the aim of having a larger critical mass of capital in 8 years time. You could then switch it into an income producing dividend fund or high income fund or take gains as income and leave to grow…depending on your income requirements at that time. All within an ISA of course…

All with a SIPP of course

Ciprico

....And via salary sacrifice if possible "of course",
{to save NI}

Dazed_and_C0nfused

Ciprico said:

....And via salary sacrifice if possible "of course",
{to save NI}

With employers NI savings thrown in for good measure of course 😜

Albermarle

Dazed_and_C0nfused said:

Ciprico said:

....And via salary sacrifice if possible "of course",
{to save NI}

With employers NI savings thrown in for good measure of course 😜

Even maybe a generous employer who ups their contribution if you increase yours!