Managing SIPP in retirement

MallyGirl

My challenge is that OH and I are the same age (within 2 weeks) so things are less clear cut in terms of life expectancy.

AlanP_2

My OH is about 6 months younger and isn't interested in the money side of things at all as long as she knows we have enough. The detail absolutely bores her, as do the fiance details she has to deal with at work.

Assuming I go first an IFA will be appointed ASAP I would imagine.

eastcorkram

MallyGirl said:

MK62 said:

Part of the problem there is that what seems simple to some, could seem very complex to others, so if you have a partner/spouse you might have to take that into consideration........and it might mean implementing a plan quite different to the plan you'd choose if there was just yourself to consider (which obviously depends on the partner)........or it might not!

Yet another thing to ponder over......

My husband has already said that, if he was to survive me, his first step would be to simplify everything as he is not interested in becoming knowledgeable enough to run the finances as they are today. I have taken that onboard and will adjust a bit once in retirement. Just got to get him to agree to retire which he is still not happy about!

Apologies for going even more off topic. Should probably have started another thread!

Sounds odd that you'd try and persuade someone to do something they didn't want to do. 

 Surely that's the same as  your OH trying to get you to go back to work, if you'd already retired. 

I guess it helps a lot with planning, as a couple , if you've similar aims about timing of retirement. 

I guess with some couples, it could prove to be quite an issue. 

Albermarle

AlanP_2 said:

My OH is about 6 months younger and isn't interested in the money side of things at all as long as she knows we have enough. The detail absolutely bores her, as do the fiance details she has to deal with at work.

Assuming I go first an IFA will be appointed ASAP I would imagine.

There is an argument that even as a DIY investor, there could be a time when it makes sense to go to an IFA ( with the disinterested OH) so that everything can just tick over if you were the first to pop your clogs.

zagfles

Albermarle said:

AlanP_2 said:

My OH is about 6 months younger and isn't interested in the money side of things at all as long as she knows we have enough. The detail absolutely bores her, as do the fiance details she has to deal with at work.

Assuming I go first an IFA will be appointed ASAP I would imagine.

There is an argument that even as a DIY investor, there could be a time when it makes sense to go to an IFA ( with the disinterested OH) so that everything can just tick over if you were the first to pop your clogs.

Or just use provider's "investment pathways" (I think all offer them now). Or buy an annuity. Loads of options for uninterested spouses other than getting expensive individually tailored advice. Even if you get a good value IFA there's no guarantee they'll remain independant, as we've seen here a lot sell out to non-independant FAs when they retire probably because they pay more to take over their client list. 

MallyGirl

eastcorkram said:

MallyGirl said:

MK62 said:

Part of the problem there is that what seems simple to some, could seem very complex to others, so if you have a partner/spouse you might have to take that into consideration........and it might mean implementing a plan quite different to the plan you'd choose if there was just yourself to consider (which obviously depends on the partner)........or it might not!

Yet another thing to ponder over......

My husband has already said that, if he was to survive me, his first step would be to simplify everything as he is not interested in becoming knowledgeable enough to run the finances as they are today. I have taken that onboard and will adjust a bit once in retirement. Just got to get him to agree to retire which he is still not happy about!

Apologies for going even more off topic. Should probably have started another thread!

Sounds odd that you'd try and persuade someone to do something they didn't want to do. 

 Surely that's the same as  your OH trying to get you to go back to work, if you'd already retired. 

I guess it helps a lot with planning, as a couple , if you've similar aims about timing of retirement. 

I guess with some couples, it could prove to be quite an issue. 

I get where you are coming from but he hates his job nearly as much as I hate mine and we have enough in pensions and ISAs. He will exceed the LSA so will stop getting the 25% tax free bit. We can afford to stop but he isn't sure what retirement would look like for him yet. 

Bostonerimus1

You don't really need much of a strategy if all you need is 2% plus inflation every year. Just put it in something like VLS80 or VLS60 and sit back. 

My retirement income needs basically come from pensions and some rental income so I just leave my DC pension money in 85% equities and the rest in a mix of cash and bonds and leave it alone.

JayRitchie

One thing to consider is the inflation clauses on your DB pensions? Do you know what those are?

If inflation is a significant risk for your retirement plans you may wish to consider if you can reduce this risk somewhat through the DC holdings.

kempiejon

I was surprised to hear that some DB pensions had a capped annual inflation limit of a measly 3%. My chum's DB pension is made up of three separate plans - same employer just different negotiations with members and each part has different clauses on inflation and other conditions.

Sarahspangles

kempiejon said:

I was surprised to hear that some DB pensions had a capped annual inflation limit of a measly 3%. My chum's DB pension is made up of three separate plans - same employer just different negotiations with members and each part has different clauses on inflation and other conditions.

MY OH's is like this. Fortunately the portion that has a lower limit is the smallest. Back when he was a lad inflation must have been less of an issue. The extent of inflation-proofing was a consideration when he made a decision about his PCLS, as the commutation rate for that was pretty good. The resulting lump sum is of course exposed to inflation risk but is likely to go towards our next house purchase, hence swapping inflation for house price inflation....