Looking for pension and retirement advice - in unusual circumstances

general_piffle

@Marcon, @Dazed_and_C0nfused, @FIREDreamer and the other 'MPAA not triggered' doubters although I'd already checked via the helpline (and was pretty confident from when I did cash it in that I wouldn't have shot myself in the foot...). I decided to make them investigate further and put it in writing.

I didn't trigger the MPAA, OK? As you were 

BikingBud

general_piffle said:

Greetings all, I'm looking for pension and retirement advice, and haven't really gone about preparing in a traditional way. 

Some brief background:

• 55 years old
• I've worked/contributed all of my life and am due the full state pension
• 2 businesses, one mine and one I share with my wife, mine has an annual turnover of about 150k, our joint business is around 500k annually
• I don't have a private or company pension of any sort
• My major asset (separate to our family home) is a property I have in London worth approx. 700k

Apart from that there are various assets, like cars and motorbikes that no doubt in 20 years or so I'll probably thin out as I get too old to at least ride the bikes.

My query is how best to prepare for retirement? I guess I'm thinking of working for another 10 to 12 years, with the last few of those years possibly being a bit more relaxed/part-time.

My business (the 150k turnover one) is a Ltd company and I'm the sole employee. Could I start tucking money away into a pension over the next 10 to 12 years? Would it be more beneficial to me and/or the business from a financial perspective to do this as a 'personal pension' or as an 'employer pension' and put money from company profits away each month?

The businesses I don't know; mine I couldn't really sell as it relies on me. The other business we could definitely sell, and I suspect my wife wouldn't mind retiring early if we were in a position to do so (she's 45). 

The property in London, I could sell I guess, or continue to rent out and take that as a monthly salary in retirement (rent is currently £1500 per month). For capital gains tax I spent more time living there than renting it out over a 20 year period of ownership, so I believe CGT will be minimal.

Finances are not really a strong-point for me, I've just worked damn hard all my life and had some lucky breaks. Any advice on company or personal pension from now until retirement - plus what to do with other assets as retirement approaches, would be very gratefully received. 

Thanks in advance!

My advice keep a motorbike, at least one, even just to sit and look at as you have a brew!

Marcon

general_piffle said:

@Marcon, @Dazed_and_C0nfused, @FIREDreamer and the other 'MPAA not triggered' doubters although I'd already checked via the helpline (and was pretty confident from when I did cash it in that I wouldn't have shot myself in the foot...). I decided to make them investigate further and put it in writing.

I didn't trigger the MPAA, OK? As you were 

I simply asked the question:

Your 'not particularly relevant' cashing in of a small pension could be an equally major misunderstanding along with your take on CGT. Unless you did so under the 'small pots rule' (and you'd need to have a provider who offered this AND specify that was what you were doing - and of course the pot would need to have been under £10K at the time you cashed it in), you've triggered the Money Purchase Annual Allowance, meaning you are severely limited to the amount of tax-relievable contributions you or your company can make to a pension: maximum of £10K per tax year, including any tax relief on personal contributions.

You subsequently answered confirming it was cashed I under the small pots regime (although you probably didn't register that was the 'regime' in question):

Incidentally, I've just got off the phone with Scottish Widows, and told them about my circumstances having cashed in my pension when I turned 55. They said that because I went for full encashment (I knew I'd done some research before cashing it in, but couldn't recall the terminology) and not drawdown or partial encashment I didn't trigger MPAA.

Regardless, it's good news that the MPAA wasn't triggered!

general_piffle

BikingBud said:

general_piffle said:

Greetings all, I'm looking for pension and retirement advice, and haven't really gone about preparing in a traditional way. 

Some brief background:

• 55 years old
• I've worked/contributed all of my life and am due the full state pension
• 2 businesses, one mine and one I share with my wife, mine has an annual turnover of about 150k, our joint business is around 500k annually
• I don't have a private or company pension of any sort
• My major asset (separate to our family home) is a property I have in London worth approx. 700k

Apart from that there are various assets, like cars and motorbikes that no doubt in 20 years or so I'll probably thin out as I get too old to at least ride the bikes.

My query is how best to prepare for retirement? I guess I'm thinking of working for another 10 to 12 years, with the last few of those years possibly being a bit more relaxed/part-time.

My business (the 150k turnover one) is a Ltd company and I'm the sole employee. Could I start tucking money away into a pension over the next 10 to 12 years? Would it be more beneficial to me and/or the business from a financial perspective to do this as a 'personal pension' or as an 'employer pension' and put money from company profits away each month?

The businesses I don't know; mine I couldn't really sell as it relies on me. The other business we could definitely sell, and I suspect my wife wouldn't mind retiring early if we were in a position to do so (she's 45). 

The property in London, I could sell I guess, or continue to rent out and take that as a monthly salary in retirement (rent is currently £1500 per month). For capital gains tax I spent more time living there than renting it out over a 20 year period of ownership, so I believe CGT will be minimal.

Finances are not really a strong-point for me, I've just worked damn hard all my life and had some lucky breaks. Any advice on company or personal pension from now until retirement - plus what to do with other assets as retirement approaches, would be very gratefully received. 

Thanks in advance!

My advice keep a motorbike, at least one, even just to sit and look at as you have a brew!

Best advice so far