Is it worth seeing a financial advisor ?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81950120#Comment_81950120

I feel that with enough research and asking questions on here I could do a decent job of planning, but it’s those things that you are not aware of that a financial advisor might be able to add that bothers me. 

If you are a regular reader of this forum, you should not be unaware of any major issues. New legislation is a regular topic.

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81950191#Comment_81950191

I think it’s just having the confidence in what I put together and plan, and particularly the different ways in which you can stress test a plan. I’ve tried a few of the free retirement planners, some of which I’ve found quite tricky. I’ve tended to focus on paying as little tax as possible, which seems a sensible approach, but on the investing side and getting decent growth over the years is where I think I’m uncertain.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81950214#Comment_81950214

but on the investing side and getting decent growth over the years is where I think I’m uncertain.

Join the club, including financial advisors ! As nobody can see the future then uncertainty is a given.

 I’ve tended to focus on paying as little tax as possible, which seems a sensible approach.

As is often said on here ' Don't let the tax tail wag the investment dog' . Minimising tax is sensible but should not be a first priority. We sometimes see posters who see avoiding tax, as a main focus and it is not usually a sensible way of looking at things.

SootySweep1

https://forums.moneysavingexpert.com/discussion/comment/81950126#Comment_81950126

Thankyou everyone

I have a local government pension & an NHS pension and my husband has a BAE Systems pension but an older one so they are all defined benefits pensions.

We are mortgage & debt free. Our children are both adults but both at university so we are still supporting them.

Our main savings pot is my husband's BAE systems shares but we have other savings too.

Yes, I'm doing the sums to work out monthly outgoings to understand how much we'd need to retire.

We also have spare money each month which I want to ensure we save / invest wisely.

i suppose I wondered if a financial advisor would give us something that we couldn't do ourselves & I think everyone has made me realise that there isn't a magic solution.

I'm not frightened of spending time researching different savings products so I think thats what I need to do.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81950214#Comment_81950214

I solved all my investment problems by using index funds and simply not worrying anymore. For retirement I made sure I had a good basis of non investment income from annuities/SP etc. to cover essential living expenses and that I had no debt and left my remaining DC pensions and investments to grow.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81950296#Comment_81950296

That sounds like a very good foundation. I would start tracking every penny you spend for a few months making sure you account for any seasonal variations like heating or holidays etc. Another way to start estimating things is to see how much your DB and SPs replace of your final salaries.

Sarahspangles

https://forums.moneysavingexpert.com/discussion/comment/81950296#Comment_81950296

We were in a similar position in recent years, even down to having the same/former employers and a slight age gap.

You should be able to get most of the information you need from the pension schemes. For us, key things to look at were whether our pensions would be reduced if we drew them early. There were key changes to LGPS schemes in 2008 and 2014, and if you have service before specific cut off dates, some pension may be paid unreduced at 60 or 65 respectively. I’ve opted not to commence mine early for this reason, and shifted savings into a SIPP whilst I was still working to get me through to 60.

There’s no substitute for spending time understanding the schemes, and trying figures in a spreadsheet.

The biggest ‘gotcha’ for us was that it made sense for my partner to take the maximum lump sum from his pension, but he then received an inheritance and has ended up paying significant tax on savings interest. With 20:20 hindsight, we should have been switching savings into SIPPs, ISAs and premium bonds much earlier.

daveyjp

Highly unlikely an IFA will have the detailed knowledge of LGPS and NHS DB schemes. They are complicated and the rules have changed a few times over the years.

Do your own research on those as regards current estimates of current income on retirement, reductions for earlh retirement etc etc.

Check out the website for the LGPS pension scheme you are a member of as the online calculators for pension estimates have been improved.

Roger175

https://forums.moneysavingexpert.com/discussion/comment/81950334#Comment_81950334

Sarahspangles' last point above is a really good one - we had different circumstances, but the same issue. In our case, we decided to sell a buy-to-let property which we had previously assumed we would keep for many years into retirement (thank God we did!). This released over £200k of equity, which we could then only get a limited amount into pensions or ISAs. With better planning/timing, we could have been far more tax efficient.

Shimrod

https://forums.moneysavingexpert.com/discussion/comment/81950296#Comment_81950296

You mention your main saving pot is your husband's BAE shares. Having a lot of money in a single company (plus relying on the same company for a job) is quite a high risk strategy. While BAE have certainly done well as a result of a ramp-up in spending, you may want to consider selling some and diversifying your investment.

If peace breaks out, you could see a quick reduction in the value of the BAE shares.