Pension stuff, how's it all looking ? HAve you prepared ?

[weeksy]

Re: should you take the lump sum?- Only you can answer that, will you do anything with it, or do you just want a decent chunk of money in your pocket?

A little of both currently, but a lot of 'doing anything with it' will depend on what and where the lad is with things. If he's racing, then yes, it'd be useful potentially... If he's not, then maybe less useful.

Using it to pay off the mortgage again may be useful as that frees up a huge chunk each month. There's obviously arguments for both sides and counter arguments for each again.

Thing is, i don't wanna sit there when i'm 75 with shit loads of money and be a useless old fucker who only goes to the Wetherspoons.

[v8-powered]

Absolutely agree.. but i do wonder to an extent with IFAs as to how independent they actually are... they must get kick-backs etc from somewhere?

Few kick-backs these days, earnings come from funds under management.

[Count Steer]

Re: should you take the lump sum?- Only you can answer that, will you do anything with it, or do you just want a decent chunk of money in your pocket?

A little of both currently, but a lot of 'doing anything with it' will depend on what and where the lad is with things. If he's racing, then yes, it'd be useful potentially... If he's not, then maybe less useful.

Using it to pay off the mortgage again may be useful as that frees up a huge chunk each month. There's obviously arguments for both sides and counter arguments for each again.

Thing is, i don't wanna sit there when i'm 75 with shit loads of money and be a useless old fucker who only goes to the Wetherspoons.

Better than sitting there at 75 with not enough money and unable to afford going to Wetherspoons.

Getting 25% tax free is a bit of a no brainer really - but you don't have to take it at 55 (assuming the rules don't change). Paying a chunk off the mortgage makes much sense too - interest is money down the proverbial drain.

I'm a fiscal conservative though and one thing I really, really like having is options. Once the cash has gone there are less of them so I've always 'cut my coat according to my cloth' and squirrelled money away (without living too meagerly - just trying to have/earn a 'surplus' ). If I need it, I've got it, if I decide I don't need it I can spend it if I want to.

tl/dr Only you can decide what's right for you.

PS IIRC an FA will either charge a fee OR take a commission on what they 'sell' you

[Horse]

Thing is, i don't wanna sit there when i'm 75 with shit loads of money and be a useless old fucker who only goes to the Wetherspoons.

What you do with your time when retired has little to do with cash - unless it's things that rely on having it (which Weatherspoons probably doesn't).

I'm sure there are plenty of places that would appreciate your talent and time.

My new retirement hobby costs me time and petrol.

[Count Steer]

PS Having the mortgage paid off is BUT I sometimes wish I'd not done it so soon and kept moving/upgrading up until I retired - then paid it off because it's the one investment that keeps on giving in terms of rising asset value. Once you get off that escalator you're pretty much in downsizing territory each move or moving to cheaper areas to maintain the standard/improve your accommodation.

[Mr Moofo]

PS Having the mortgage paid off is BUT I sometimes wish I'd not done it so soon and kept moving/upgrading up until I retired - then paid it off because it's the one investment that keeps on giving in terms of rising asset value. Once you get off that escalator you're pretty much in downsizing territory each move or moving to cheaper areas to maintain the standard/improve your accommodation.

I am not sure I understand the logic of that. Keep on paying for an asset on raised mortgage or have said asset - with no risk to it being taken away. It is still a rising asset!

[weeksy]

PS Having the mortgage paid off is BUT I sometimes wish I'd not done it so soon and kept moving/upgrading up until I retired - then paid it off because it's the one investment that keeps on giving in terms of rising asset value. Once you get off that escalator you're pretty much in downsizing territory each move or moving to cheaper areas to maintain the standard/improve your accommodation.

But lets say you upgrade to a 1,000,000 house... what's the actual point ? You've then got too big a house for your old age, by the time you die your kids don't need it as they're 50 years old.... so where's the plan going ?

[Yambo]

Mmmm . . .

I'm 73 and I can't see any reason to sit in a corner, smelling of wee and waiting for 'Spoons to open.

I don't have a pot of money sitting waiting for me to dip in on a rainy day. I simply get an income from 3 pensions - the State pension, just over £600 every 28 days (that is paid straight into my Turkish bank in TL), my army pension and a small £50 a month pension courtesy of my dear departed wife.

However, I can live comfortable on my State pension at the moment because the £/TL exchange rate is in my favour. It easily covers all my day to day expenses here. The army pension and the little one go into my UK bank (Starling) and I have a few 'Spaces' open for savings - kitchen (I need a new one), holiday and hobby money. I only very rarely buy on credit.

I'm as active as I want to be, currently getting boats ready for late spring, developing and making a range of bird tables that should sell easily and some astrophotography when the weather allows - the photos need processing which is an ideal job for a rainy day.

I think it's difficult to predict what you're going to get up to when you retire and what you're going to be able to afford to do and to be honest I think it's a foolish exercise. You have no idea whether your good health is going to keep pace with the passing years, whether your nearest and dearest are still going to be there, or what the weather will allow. For sure, having loads of dosh will allow you to sit around and think of ways to waste it but it's got to be better to decide at the time, bearing in mind your circumstances at the time how you are going to fill your days. Your prostate may have a say in the matter.

[Count Steer]

PS Having the mortgage paid off is BUT I sometimes wish I'd not done it so soon and kept moving/upgrading up until I retired - then paid it off because it's the one investment that keeps on giving in terms of rising asset value. Once you get off that escalator you're pretty much in downsizing territory each move or moving to cheaper areas to maintain the standard/improve your accommodation.

I am not sure I understand the logic of that. Keep on paying for an asset on raised mortgage or have said asset - with no risk to it being taken away. It is still a rising asset!

In simple terms, I've seen a house I'd like to move to but, unless I completely empty the coffers, can't buy and can't get a mortgage obvs. If I'd kept moving 'up' for a few more years instead of saying 'this'll do' I'd probably be able to move/downsize and pocket the difference.

@weeksy you might be surprised how little £800k - 1M gets you in some locations.

[Mr Moofo]

PS Having the mortgage paid off is BUT I sometimes wish I'd not done it so soon and kept moving/upgrading up until I retired - then paid it off because it's the one investment that keeps on giving in terms of rising asset value. Once you get off that escalator you're pretty much in downsizing territory each move or moving to cheaper areas to maintain the standard/improve your accommodation.

I am not sure I understand the logic of that. Keep on paying for an asset on raised mortgage or have said asset - with no risk to it being taken away. It is still a rising asset!

In simple terms, I've seen a house I'd like to move to but, unless I completely empty the coffers, can't buy and can't get a mortgage obvs. If I'd kept moving 'up' for a few more years instead of saying 'this'll do' I'd probably be able to move/downsize and pocket the difference.

@weeksy you might be surprised how little £800k - 1M gets you in some locations.

Okay - fair do's , I understand now.

800k buys a 3 bed semi in these parts

[mangocrazy]

Personally I'd always pay off the mortgage, having a house all paid for is a massive weight off my mind.

This, absolutely. There was no way I was going to retire while still having a mortgage. Doubly so, with current mortgage increase horror stories.

As for 25% tax-free cash, I'm currently withdrawing a set amount of it each month from my pension pot to top up the State Pension. At current rates I'll be around 80 y.o. before I need to dip into the taxable component. Works for me...

[Yambo]

PS Having the mortgage paid off is BUT I sometimes wish I'd not done it so soon and kept moving/upgrading up until I retired - then paid it off because it's the one investment that keeps on giving in terms of rising asset value. Once you get off that escalator you're pretty much in downsizing territory each move or moving to cheaper areas to maintain the standard/improve your accommodation.

But lets say you upgrade to a 1,000,000 house... what's the actual point ? You've then got too big a house for your old age, by the time you die your kids don't need it as they're 50 years old.... so where's the plan going ?

I know a few people who bought big houses for their retirement. Most of them have sold them and downsized - a big house can be a lonely place when there's just you and the missus.

A friend of mine has a big house at the back of the village, it would be a fantastic family house except his son who is in the UK doesn't talk to him (I have a similar issue), one of his twin daughters is happily married and staying in the UK and the other twin lives in her own place in the village with her Turkish husband and son. They don't want to live with their dad. To cap it all off, his wife is still working in the UK and has no plans to retire yet.

That big house is simply a burden.

[Horse]

I cringe inside whenever I hear someone talk about their 'forever home'.

[v8-powered]

Although I suppose that's the point of your point (if that's not a tautology) buy the biggest house you can afford, because you can't afford it once you retire and you can always downsize and collect the surplus cash.

Exactly what we have done - 10 year plan to buy, live like a Lord and Lady (well not quite, but you get my drift) and then sell in advance of me hopefully packing in work and my wife selling her business.

[Yorick]

We maxed right out to buy our big house in UK. We knew were retiring to here and wanted the equity as profit and we got to live in a beautiful house for a few years.

[Taipan]

Re: should you take the lump sum?- Only you can answer that, will you do anything with it, or do you just want a decent chunk of money in your pocket?

A little of both currently, but a lot of 'doing anything with it' will depend on what and where the lad is with things. If he's racing, then yes, it'd be useful potentially... If he's not, then maybe less useful.

Using it to pay off the mortgage again may be useful as that frees up a huge chunk each month. There's obviously arguments for both sides and counter arguments for each again.

Thing is, i don't wanna sit there when i'm 75 with shit loads of money and be a useless old fucker who only goes to the Wetherspoons.

You can, and to my mind should, flip that argument on its head. You're relatively young now and have an earning capability and presumably a decent current income. What is wrong enough with that, that you need an income of a lump sum? I'd look to make changes, better job(s), tighten your belts etc.

When you're in your 70s and don't have an earning ability or any hope of getting re-employed, you may be very glad of your little pot of money, should you need it for health or property maintenance etc or just simply maintaining a decent lifestyle. I can't think of anything worse than enduring self-imposed financial hardship due to the "I wants" of my younger self. YMMV...

[Count Steer]

I cringe inside whenever I hear someone talk about their 'forever home'.

I cringe outside. (My new neighbours said it when they moved in. They've got primary school aged kids It's a nice enough gaff with woodlands etc but to consider, at that age, 'Oh, I think I'll die here' is just bizarre.).

[Cousin Jack]

I'm 73 and I can't see any reason to sit in a corner, smelling of wee and waiting for 'Spoons to open.

I'm 77, going on 78 and I sure as hell don't sit in the corner, and I don't do 'Spoons. Others can decide if I smell of wee.

I do spend money, another motorcycle tour is on the stocks for this year, we enjoy decent hotels and restaurants so holidays in the UK are pretty expensive, and 2 cars will need changing before ICE/hybrids disappear.

I am lucky, 1 decent index-linked pension and 2 smaller (one very much smaller) pensions + Govt pensions means we are comfortable enough, but my costs are at least keeping pace with inflation. Even in my 80s I expect to have to be able to go out and spend money, so don't spend it all by 65.

[JackyJoll]

I hope your memory is long enough to recall our recent bout of inflation, vaulting prices and fund plans ceasing to yield any gains.

You can bet that put a lot of old gits into queer street; people who thought they had a fair safety margin of more money/income than they needed.

[JackyJoll]

Absolutely agree.. but i do wonder to an extent with IFAs as to how independent they actually are... they must get kick-backs etc from somewhere?

The thought of removing 25% sounds ace to re-invest say 50% of that short term... but there's something about a maximum you can put in then as being £10,000 a year into the continuing pension ? or have i mis-read that ?

There are bound to be crooked IFAs, but I think in theory they live on money from their clients (you).

I’ve heard of that £10k limit on payments into pension schemes when you’re drawing a pension, but you can invest in things that are not pensions.