Retirement planning sense-check 2025

SarahB16

"Do you intend to sell the house at some point? 

No. It is an ideal location in a lovely part of town, very close to the centre, great nearby shops, and doctors, great neighbours etc."

@Yorkie1 Your homes sounds perfect and I can appreciate why you are considering having the extension.  I am genuinely interested to hear what you class as 'nearby'.  I appreciate as a person gets older mobility can be an issue so the importance of having things you value 'nearby' is important.

Perhaps 'nearby' is within a walking distance of 10 - 15 minutes?      

Yorkie1

SarahB16 said:

"Do you intend to sell the house at some point? 

No. It is an ideal location in a lovely part of town, very close to the centre, great nearby shops, and doctors, great neighbours etc."

@Yorkie1 Your homes sounds perfect and I can appreciate why you are considering having the extension.  I am genuinely interested to hear what you class as 'nearby'.  I appreciate as a person gets older mobility can be an issue so the importance of having things you value 'nearby' is important.

Perhaps 'nearby' is within a walking distance of 10 - 15 minutes?      

Thanks   Yes, the shops are within 5 minutes' walk. Mainly little independents but also some small supermarket locals.

Albermarle

SarahB16 said:

"Do you intend to sell the house at some point? 

No. It is an ideal location in a lovely part of town, very close to the centre, great nearby shops, and doctors, great neighbours etc."

@Yorkie1 Your homes sounds perfect and I can appreciate why you are considering having the extension.  I am genuinely interested to hear what you class as 'nearby'.  I appreciate as a person gets older mobility can be an issue so the importance of having things you value 'nearby' is important.

Perhaps 'nearby' is within a walking distance of 10 - 15 minutes?      

Also the nature of the walk is important , preferably not up or down a steep hill, or crossing a huge roundabout .

ali_bear

Community is the word. Is there a community and where is your place in it. 

Yorkie1

ali_bear said:

Community is the word. Is there a community and where is your place in it. 

Having lived in the area for many years, it's a lovely community yes.

Getting back to my original queries: I will need to bridge (at today's prices, but in 5 years' time) up to £21K gross for 5 years and then up to £8K for 2 years, before SP age.

I anticipate assets then will be in the region of:
- S&S ISA currently valued at about £100K (with MyWealth, moderate risk) - at whatever value that becomes by then
- AVCs of about £100K contributions - ditto re. value by then
- Cash currently at £100K (mainly PBs, cash ISAs)
- Classic lump sum of £44K based on today's salary

Cash lump sump from Classic will count for years 1 and probably most of year 2. My Classic pension will use all of my 0% income tax band.

What combination might be worth considering? AVCs, S&S ISA, or Cash savings to fill the gap?

If the AVCs, which was my original thought process, then they are currently invested in the default L&G PMC Multi-Asset fund 3. I've just been notified that this will move to the L&G PMG 2035 - 2040 Target Date Fund 3 at the end of this month. I presume this is the default fund based on my currently recorded retirement age & date of 67 & 2037. Should I be seeking to change my retirement age & date (e.g. to 60), and thus I assume moving into a lower risk fund?

I had also considered a 5-year RPI annuity from some of the assets. I really don't understand gilt-ladders, despite repeatedly reading helpful threads, so would probably stay away from them.