Pensions

flook said:
Thanks, seems I need to do some digging then, looks like a simple way to make 1400 quid a year.

So in a nutshell, I open a SIPP, pay in £2880, Kier gives me £720 and I can draw that down whenever and in whatever amount I wish?
Click to expand...
As long as you are a non tax payer and any other income keeps the total below your annual tax threshold take the lot out then repeat.
 
East Level 2 said:
I'm 68, getting the state pension, and on a drawdown pension with a pot value of £350k. It's all very low risk and should last around 23 years allowing for 2% inflation.
I have an IFA who does a review every year and also administers any changes I want to make such as taking a lump sum or altering the monthly draw down. I can't remember the fee he currently takes, but what would be a typical figure for this advice from an IFA.
Click to expand...
How long have you had the IFA?
If it’s a few years he may be taking commission.
 
I plan to retire next year at 56. Decent DC pension which I will start to take next year, then 2 DB pensions at age 65 and the state pension at age 67 and i have no mortgage. Currently paying into the wife's pension, 300 per month with tax relief. I'll continue to pay into her pension til im aged 65. I plan to use my DC pension as part drawdown and part annuity. I won't do the annuity until 65 when the DB ones kick in, as long as annuity rates are OK. I have an IFA but only in case I snuff it as my wife has no idea about pensions whilst I have worked with them since the 80s so have a decent understanding. Like others have stated my dad died at 61 and whilst my mum died in her 70s, her body was a mess, riddled in arthritis and couldn't do a thing due to pain. I plan to spend as much as I can whilst I can still enjoy it.
 
hampshireblue said:
My IFA charges a fixed amount but it's around 0.35%. Two meetings a year, excellent comms with him and his team which is key for me.
Click to expand...
I must admit Im not sure if I need an IFA. What do you get from the IFA for that fee ?

Yes I realise you get financial advice, but has the IFA saved you the money that you have paid them or is it more peace of mind that you are making the correct decisions ?

Im reasonably financially savvy even though I dont work in the finance sector.
 
Kompany Car said:
I must admit Im not sure if I need an IFA. What do you get from the IFA for that fee ?

Yes I realise you get financial advice, but has the IFA saved you the money that you have paid them or is it more peace of mind that you are making the correct decisions ?

Im reasonably financially savvy even though I dont work in the finance sector.
Click to expand...
A bit of all of those. For example, you need to be well diversified. What do you know about bonds and gilts and what protection they give your portfolio assuming you're not 100% invested in stocks. Are you properly exposed globally? Do the funds you are invested in have much/any overlap? How are you sorted in terms of tax planning? Are you maximising your income v pension? What's the best strategy for flexi drawdown? Do you know about "small pots"? Do you want to spend your precious time worrying about your portfolio? Do you have access to the tools to do ongoing "what ifs"?

It may be that you don't need one until you actually approach retirement age. It's not so much the advising part that is important but the medium/long term planning, so a Chartered Financial Planner is a sensible course of action. Some of them will give a free hour or so to give you a feel for what they offer and some will also charge by the hour if you don't want to commit to long term payments.
 
Last edited:
As I have said in a previous post I would rather be in charge of my own money rather than pay someone else for the privilege of looking after it for me.
No kids and a wife 6 years younger than me.
Went in to semi retirement at 50 when wife was 44 then I fully retired at 60.
I have cash bonds averaging about 5% return from around £600 k, amounts to £30k interest per year.
My state pension as I am now 67 of £12k and my Mrs draws down £10 k a year private pension 25% tax free which will run out of funds when she hits state pension age.
I also have a small pension of £1750 from an annuity and £1600 from recurring consultancy income.
We are currently withdrawing about £6k per month cash, on average to live on.
To get that through a pension with tax deducted, it would need to be over £100k gross per annum.
Death will probably come before we run out of money but the insurance policy just in case, is the house.
The bonus is we get to enjoy the house on a daily basis rather than just looking at a pension pot figure .
The other big plus is also on average, the house value increases in value way above what a pension pot would achieve .
There are lifetime mortgages out there now, better than equity release schemes.
Lifetime mortgages are available on a draw down basis rather than lump sums which equity release tends to be . The problem is with lump sums you pay for a loan on funds you don’t need and none of the companies do offset mortgages for obvious reasons.
The loan, if ever we need it, can be paid off if we decide to downsize…. Or the last one dies.
 
didn't join my workplace pension till early 30's which i will regret.
now pay in max 7% and they pay 11% i think.
 
halfmist said:
As I have said in a previous post I would rather be in charge of my own money rather than pay someone else for the privilege of looking after it for me.
No kids and a wife 6 years younger than me.
Went in to semi retirement at 50 when wife was 44 then I fully retired at 60.
I have cash bonds averaging about 5% return from around £600 k, amounts to £30k interest per year.
My state pension as I am now 67 of £12k and my Mrs draws down £10 k a year private pension 25% tax free which will run out of funds when she hits state pension age.
I also have a small pension of £1750 from an annuity and £1600 from recurring consultancy income.
We are currently withdrawing about £6k per month cash, on average to live on.
To get that through a pension with tax deducted, it would need to be over £100k gross per annum.
Death will probably come before we run out of money but the insurance policy just in case, is the house.
The bonus is we get to enjoy the house on a daily basis rather than just looking at a pension pot figure .
The other big plus is also on average, the house value increases in value way above what a pension pot would achieve .
There are lifetime mortgages out there now, better than equity release schemes.
Lifetime mortgages are available on a draw down basis rather than lump sums which equity release tends to be . The problem is with lump sums you pay for a loan on funds you don’t need and none of the companies do offset mortgages for obvious reasons.
The loan, if ever we need it, can be paid off if we decide to downsize…. Or the last one dies.
Click to expand...
Surely your wife's drawdown is completely tax free as it's below the tax threshold of £12,600!
 
I'm now only £3K down in my pension pot when Trump crashed it earlier this year.

At one point I was £25K down.
 
Last edited:
jrb said:
I'm now only £3K down in my pension pot when Trump crash it earlier this year.

At one point I was £25K down.
Click to expand...
similar in my ISA, 5k below peak from a previous 30k, just in time for the 45 days to expire and shitgibbon kicking off again :/
 
  • Like
Reactions: jrb
jrb said:
I'm now only £3K down in my pension pot when Trump crash it earlier this year.

At one point I was £25K down.
Click to expand...
If you were still paying in, that was a great period. I'm hoping he decides to crash it a few times again over the next few years before I finally start to access it.
 
I pay an IFA 250 quid an hour twice a year if I need it but I manage my own funds. I have a good idea on funds and switch every 6 months if I feel they aren’t performing.
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top