Retiring

[denislawsbackheel]

I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event?

Needs considering because unless you both go together it’s going to happen.

 

[dickie davies]

I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event

Do you know the legalities in this event!
If I'm drawing down on my pension and snuff it when there's still £100k left, will the fund transfer to my wife?

 

[denislawsbackheel]

Read your small print.
Info here

Pension inheritance: what happens to my pension when I die?

How to leave your pension to your family. How to use your pension to reduce inheritance tax.

www.unbiased.co.uk

 

[abu13]

What are peoples thoughts on the tax free withdrawal of 25%, i know 3 people who withdrew this as soon as they could at 55. Seems a little silly to me unless you are desperate for the cash.

They have used the money for holiday's, new cars and other "treats" rather than a desperate need for it.
I understand the live for today thinking but seems short sighted to me.

 

[hampshireblue]

I'm 4 years into drawdown and still have some tax free cash left to withdraw. It's all a balance. Remeber that as soon as the cash is out of your pension it becomes part of your estate and therefore potentially inheritance tax.

 

[flook]

Your original post didn’t mention £25K shared out!

ah so you assumed I was single?, and it's still possible even without sharing, there's no tax on an ISA withdrawal

 

[flook]

I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event?

yes i've struggled factoring that in as when it happens has a major impact obviously. In the end I ignored it on the basis if she goes first she's more expensive than I am so I'm better off, and if I go first I'm past caring :)

 

[TheRemainsOfTheDave]

Anyone had/having dealings with Reassure ?
L&G passed over to them last year numerous pension polices.

I have a small-ish pension with them which was also an L&G policy. No issues other than I noticed over Xmas that one of the two funds my pension invests in is showing as closed, so I'm wondering if I need to do something about it, and they seem to have a backlog of messages at the moment, so am waiting for an answer.

I've no concerns about them, they're handling £39bn of investments, so should be okay.

 

[hammocity]

Downsizing, Equity release and RIO's are a way to unlock capital in retirement. The first is the best option but do it sooner rather than later. Some people can't bear to part with houses where they have brought kids up or it holds some sentiment.

A Rio and equity release are best accessed once the savings or drawdown pensions are gone. I'm budgeting to do this if I make it to around mid 70's as I draw down my pension, it will be gone by then, in my case it will be equity release as to get a RIO you still need the requisite income which I won't have, will just be the state pension by then.

As a final point, a Financial Adviser I know told me it's incredible these days that some people factor in inheritance, if it's a big estate then there's no problem. However if it's say around 100k that money would soon go if the person leaving the estate were to be placed in a care home, £3k per month, leaving just £23k ring fenced to pass on, it soon goes. I'm in that boat with my old man who's 88 but I've not factored that to my finances, anyone could have something like a stroke at anytime and need lifetime care.

 

[denislawsbackheel]

For all those of a certain age make sure you have
A. A will
and
B. Power of Attorney set up so your affairs can be dealt with when you lose mental capacity.
It will save a great deal of grief and pain later on. For instance if you lose capacity with no power of attorney set up you or your offspring will not be able to sell your house to fund any care or move into more suitable accommodation.