100k+ earnings and max TFLS

hugheskevi

Is there any way you can create more funds now and before minimum pension age that you can repay using the pension?

The obvious thing is a mortgage - lower repayments, or even taking out a small mortgage. 

0% purchase credit cards, along with 0% balance transfers, should be able to create many tens of thousands of extra cash. There is uncertainty about refinancing these at end of 0% offers though, so best used for shorter periods (1-3 years) of bridging or as a back-up to the main plan to increase resources available.

Even things like loans and car finance might have a role to play in creating resources now for payment later.

Mistermeaner

Thanks hugheskei - its something i've considered although i would feel uncomfortable leveraging up too much.... having the pension 'sorted' and locked in a cupboard is a nice feeling and ideally wouldn't want to be dipping into this straight away to pay off debts.

The mortgage we owe 170K, the interest due each month is around £550 but we pay £1500 (regular overpayments) - that the one i've thought about scaling back on but it feels quote nice watching the balance drop by nearly 1K each month. Interest rate is fixed at 3.8% until 2029 so its not a bad return vs cash isa's etc.

Im inclined to continue paying the mortgage down while the income is good. Dropping to interest only would be an option should income drop (job change or loss) or during the post retirement pre pension period

ali_bear

Yeah sounds like you're on track. Live for today and tomorrow, because the day after tomorrow is already sorted. 

PootleF

I have a similar issue. How long a period are you trying to bridge? My assumption is that if we haven’t saved enough outside of pensions we will make use of 0% credit cards and an interest only offset mortgage if needed - the interest on the latter is considerably outweighed by the tax saving given the 60% tax bracket. 

Mistermeaner

probably 7-8 years. 46 today. Would love to quit at 50 and biggest kids will be through uni by then 

1980ds

Interesting topic and one I can somewhat relate to albeit at lower levels. I ramped up my contributions a few years ago and sit at 525k at 45 with the aim to retire around 55.  Aiming for pot to be £1m so if I need to work one extra year until 56 and put it all into the pot then so be it. 

I pulled back my contributions last year as was happy enough with where my pot was heading and decided to focus on ISA and living for today - a lot can be said for the ski holidays whilst you’re still fit enough to do them! ⛷️ 

I did often think I don’t want to save so much and not focus on the present so that I sit there at age 60 with all this cash and no memories…

HedgehogRulez

I guess also there's a question around whether you have children (and potential grandchildren) that you'd like to support when you pop your clogs in 40 years time. I'd like to leave some security to future generations and as such I'm still ploughing in £60k a year for the next few years until i hit 50 (current pot at £940k at 46 y/o).

I'll pull back to under £100k adjusted net income when i hit 50 with a view to retire at 53ish

DRS1

1980ds said:

Interesting topic and one I can somewhat relate to albeit at lower levels. I ramped up my contributions a few years ago and sit at 525k at 45 with the aim to retire around 55.  Aiming for pot to be £1m so if I need to work one extra year until 56 and put it all into the pot then so be it. 

I pulled back my contributions last year as was happy enough with where my pot was heading and decided to focus on ISA and living for today - a lot can be said for the ski holidays whilst you’re still fit enough to do them! ⛷️ 

I did often think I don’t want to save so much and not focus on the present so that I sit there at age 60 with all this cash and no memories…

Have you checked that you can access your pension at 55?  It might not be available until you are 57.  But hopefully your ISA and other savings will cover any gap.

1980ds

DRS1 said:

1980ds said:

Interesting topic and one I can somewhat relate to albeit at lower levels. I ramped up my contributions a few years ago and sit at 525k at 45 with the aim to retire around 55.  Aiming for pot to be £1m so if I need to work one extra year until 56 and put it all into the pot then so be it. 

I pulled back my contributions last year as was happy enough with where my pot was heading and decided to focus on ISA and living for today - a lot can be said for the ski holidays whilst you’re still fit enough to do them! ⛷️ 

I did often think I don’t want to save so much and not focus on the present so that I sit there at age 60 with all this cash and no memories…

Have you checked that you can access your pension at 55?  It might not be available until you are 57.  But hopefully your ISA and other savings will cover any gap.

Oh I won’t be able to access until most likely 58 so will need to bridge - hence the ISA.