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  • FIRST POST
    • stephenadarglas
    • By stephenadarglas 16th Jun 19, 5:12 PM
    • 53Posts
    • 10Thanks
    stephenadarglas
    My situation
    • #1
    • 16th Jun 19, 5:12 PM
    My situation 16th Jun 19 at 5:12 PM
    Hi everyone

    Would just appreciate some comments on my current situation.

    I'm retired with two pensions. One is from the Mineworkers Pension Scheme and the other is from the Teachers Pension Scheme. Both combined add up to 19000 pre tax.

    I also have circa 100000 in a SIPP untouched and not adding any more money. Funds include two global funds and two uk income/accumulation funds. Also invested in the Smithson fund.

    There's also circa 64000 in a S&S ISA untouched and currently adding 600 a month from a part time job that I have (one day a week). This fund choice is a little more adventurous and includes more growth funds (four in total). I'll pack this job in when wife retires.

    My wife is 58 and intends working until she's 60. She has a Local Government Pension which will pay 12000 pre tax. She's also paying Prudential AVCs of 625 a month which currently totals around 17500.

    Finally we have cash saved in various areas that include one year and two year bonds. 20000 in Premium bonds and a 20000 float in Santander - total cash is around 100000.

    I'd appreciate people's views.

    Kind regards

    Stephenadarglas
Page 1
    • cisamcgu
    • By cisamcgu 16th Jun 19, 5:23 PM
    • 86 Posts
    • 51 Thanks
    cisamcgu
    • #2
    • 16th Jun 19, 5:23 PM
    • #2
    • 16th Jun 19, 5:23 PM
    My comments :

    You have 100,000 in cash
    You have 100,000 in a SIPP
    You have 64,000 in an ISA
    You have a DB pension total of over 30,000
    you have a part-time job that pays enough to put away 600 a month

    Not really sure what else there is to say .....

    unless you tell us so more information, or have a question , or .... ???
    Last edited by cisamcgu; 16-06-2019 at 5:29 PM.
  • jamesd
    • #3
    • 16th Jun 19, 7:05 PM
    • #3
    • 16th Jun 19, 7:05 PM
    Are you both already making gross pension contributions equal to your gross pay? If not, changing to do that and living off savings and existing pension income is likely to be a good move.
    • Marcon
    • By Marcon 16th Jun 19, 7:41 PM
    • 1,094 Posts
    • 842 Thanks
    Marcon
    • #4
    • 16th Jun 19, 7:41 PM
    • #4
    • 16th Jun 19, 7:41 PM
    Are you both already making gross pension contributions equal to your gross pay? If not, changing to do that and living off savings and existing pension income is likely to be a good move.
    Originally posted by jamesd
    ....except you probably can't. If contributions are to an employer's scheme, and personal contributions are deducted before tax is paid, NI is still (potentially) payable on the whole salary.

    If OP makes contributions to a DC scheme, these are limited to gross earnings including any tax relief claimed on their behalf by the pension provider.
    • SeniorSam
    • By SeniorSam 16th Jun 19, 8:34 PM
    • 1,307 Posts
    • 670 Thanks
    SeniorSam
    • #5
    • 16th Jun 19, 8:34 PM
    • #5
    • 16th Jun 19, 8:34 PM
    Sounds good, but it depends on your needs in retirement as to your best way forward. The global funds should work well, I have a good part in my Sipp and am 78 now, but we do tend to spend a lot on holidays, so it has been useful to have a bigger Sipp, with growth of about 14%.
    Adding to your Sipp if you can will increase the amount you hold in Trust, but one thing you have not mentioned is value of property and if IHT could be a concern after your individual allowance of 500k each, including residential allowances from next year.
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, so my comments are just meant to be helpful.
  • jamesd
    • #6
    • 17th Jun 19, 12:15 AM
    • #6
    • 17th Jun 19, 12:15 AM
    ....except you probably can't. If contributions are to an employer's scheme, and personal contributions are deducted before tax is paid, NI is still (potentially) payable on the whole salary.
    Originally posted by Marcon
    You just use a personal pension as well as the work one. It's easy. Yes this doesn't save NI unless the work portion uses salary sacrifice..

    If OP makes contributions to a DC scheme, these are limited to gross earnings including any tax relief claimed on their behalf by the pension provider.
    Originally posted by Marcon
    Yes. And the wife's DB value increase will need to be included in her annual allowance use check.
    • Albermarle
    • By Albermarle 17th Jun 19, 8:30 AM
    • 1,015 Posts
    • 620 Thanks
    Albermarle
    • #7
    • 17th Jun 19, 8:30 AM
    • #7
    • 17th Jun 19, 8:30 AM
    I'd appreciate people's views.
    You are sitting very comfortably !
    • stephenadarglas
    • By stephenadarglas 17th Jun 19, 10:46 AM
    • 53 Posts
    • 10 Thanks
    stephenadarglas
    • #8
    • 17th Jun 19, 10:46 AM
    • #8
    • 17th Jun 19, 10:46 AM
    Thanks everyone for their comments and the food for thought. Much appreciated.
    • justme111
    • By justme111 17th Jun 19, 5:13 PM
    • 3,298 Posts
    • 3,173 Thanks
    justme111
    • #9
    • 17th Jun 19, 5:13 PM
    • #9
    • 17th Jun 19, 5:13 PM
    You either will fund your care or your descendants /charity of choice will be happy
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers to difficult choice between two undesirable options.
    I came across so many occasions when people use the word without understanding what it means I decided to use the definition above as a signature.
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