Haven't a clue where to start!

musicelf

Hi to all - new to this site and need advice

I'm shortly about to take early retirement from teaching and will have a lump sum and a tiny annuity. I missed quite a few years in the middle of my career and didn't make them up, so I won't get the full pension.

A couple of questions:

What's the best thing to do with a lump sum which will be about £17000 when I've paid off debts and bought myself a car? I'm not a risk-taker as I've been burned before.

What happens about my state pension, which I won't get until I'm 61? Do I keep paying contributions? I'm married to a man who has never missed a payment.

I wasn't a maths teacher, and my head finds it really hard to get round financial vocabulary. We're talking Mickey Mouse language preferably!

Would be grateful for any advice as to what to do with my money.

Thanks!

chesky369

Have you used up your ISA allowance - if not, you can put £3,600 per annum in cash ISAs (plus the same amount for your husband); up until recently I would have suggested stocks and shares ISAs but they're a bit rocky at the moment, so it's probably best to stick to cash ISAs if you're new to this. You can get this year's before April and then get next year's more or less immediately afterwards. That should take care of most of it but you can bung the rest in a high interest savings account like ICEsave.

Can't remember about NI contributions - Edinvester is good at this kind of stuff but you could also telephone the Pension Service, they'd be able to tell you immediately.

EdInvestor

musicelf wrote: »

What's the best thing to do with a lump sum which will be about £17000 when I've paid off debts and bought myself a car?

National Savings index linked certs are also good if you don't need income.They are paid tax free.

What happens about my state pension, which I won't get until I'm 61?

This will depend on whether you retire before or after 2010.If after, you will only need 30 years NI conts to get a full basic state pension in your own right. Check at https://www.thepensionservice.gov.uk for a pension forecast ( you may have to wait until October as they are updating the computer.

Do I keep paying contributions? I'm married to a man who has never missed a payment.

You need to look at how much state pension you can get on your own account at 61, and compare with with the 60% you will get on his account (but only when he retires at 65).

musicelf

Thanks for the replies. Gives me something to look at.

M.

Retired_I.F.A.

"I wasn't a maths teacher, and my head finds it really hard to get round financial vocabulary"

Dont worry about that, the only teachers I knew who opted out of the teachers pension scheme prefering a personal pension were 3 maths teachers who believed their own contributions would equate to more than their own plus the employers.

1+1 =2 yet 1+0=3 in their eyes.

cyclonebri1

Retired_I.F.A. wrote: »

Dont worry about that, the only teachers I knew who opted out of the teachers pension scheme prefering a personal pension were 3 maths teachers who believed their own contributions would equate to more than their own plus the employers.

1+1 =2 yet 1+0=3 in their eyes.

:rotfl: :rotfl: :rotfl: