[Finance] Early Retirement help

Daddies_Sauce · Mar 25, 2019

Weststander said:
Wish I had your £1.3m SIPP pot. #Envious

Sadly nowhere near that figure. My son and daughter have made arrangements through a different IFA to mine and their costs are lower than mine. Reading a number of the retirement forums where discussions are on those retired, about to retire and those seeking to FIRE, and reading the eye watering sums that have squirrelled away makes me feel very poor. For 10 years my pension investments did reasonably well, over the last 2 years, not so much.

Nitram · Mar 25, 2019

If you are in an index linked pension take the smallest lump sum, and try and pay off all debts with what’s left.

bhafc99 · Mar 25, 2019

LowKarate said:
I can’t help you with your question, but let me just congratulate you on your choice not to move to Ipswich. This is a decision that you will never ever regret.

Exactly. Can’t believe we had to wait through 34 posts before someone actually gave some useful advice. Could you imagine the kind of financial advice you’d get if you had moved to Ipswich? “Some annuities football can’t buy. Pension isn’t one of them. ISA.”

Sent from my iPhone using Tapatalk

Driver8 · Mar 25, 2019

happypig said:
I don't intend to get a job unless it's something I fancy doing (might do some charity stuff though) as I won't need to.

Paid the mortgage off last year.

Got a feller coming Friday to explain the options to me and give me the figures but he won't actually give advice at that time (I can use them to advise on investments later if I want).

I was more interested in what others had done, and why.

I am an IFA with over 30 years experience

PM me if you want a second opinion once you have seen your adviser. I’m too far away to do it formally but I can at least make sure you aren’t ripped off!

dazzer6666 · Mar 25, 2019

bhafc99 said:
Exactly. Can’t believe we had to wait through 34 posts before someone actually gave some useful advice. Could you imagine the kind of financial advice you’d get if you had moved to Ipswich? “Some annuities football can’t buy. Pension isn’t one of them. ISA.”

Sent from my iPhone using Tapatalk

East Staffs Gull · Mar 25, 2019

Nitram said:
If you are in an index linked pension take the smallest lump sum, and try and pay off all debts with what’s left.

Virtually all pensions from final salary schemes are increased annually, by law. The amount of lump sum that is offered in exchange for that pension has to reflect these increases, again by law.

Stoichkov · Mar 25, 2019

bhafc99 said:
Could you imagine the kind of financial advice you’d get if you had moved to Ipswich? “Some annuities football can’t buy. Pension isn’t one of them. ISA.”

Reg · Mar 25, 2019

Be very careful about the higher lump sum / reduced monthly payment option. These are rarely in your interest. Financial advisers are unlikely to give you good, objective advice because they will earn more from advising on a larger lump sum.
Compare the difference between the higher and lower lump sums with the annual difference in pension. Unless it is well over 30x you are being offered a very bad deal.
There are secondary considerations (is the pension index-linked, are you healthy, do you have some really expensive debt you could pay down) but basically if you are healthy and solvent then the difference in lump sums has to be massive to compensate.

happypig · Mar 25, 2019

Tim Over Whelmed said:
** Please be careful, I finally found some very good advice but there are many people looking to help you spend your tax free pot!

I know, but she's a good wife.

Harry Wilson's tackle said:
May we ask how old you are? And would you be so kind as to tell us?

I'll be 56 in June. 35 years on the firm, man and boy.

Nitram said:
If you are in an index linked pension take the smallest lump sum, and try and pay off all debts with what’s left.

No debts.

Driver8 said:
I am an IFA with over 30 years experience

PM me if you want a second opinion once you have seen your adviser. I’m too far away to do it formally but I can at least make sure you aren’t ripped off!

Thank you.

Driver8 · Mar 25, 2019

Reg said:
Financial advisers are unlikely to give you good, objective advice

Don’t tar us all with the same brush thank you.

There are many decent advisers around these days and many less rogues than there used to be (although they do exist).

dazzer6666 · Mar 25, 2019

Reg said:
Be very careful about the higher lump sum / reduced monthly payment option. These are rarely in your interest. Financial advisers are unlikely to give you good, objective advice because they will earn more from advising on a larger lump sum.
Compare the difference between the higher and lower lump sums with the annual difference in pension. Unless it is well over 30x you are being offered a very bad deal.
There are secondary considerations (is the pension index-linked, are you healthy, do you have some really expensive debt you could pay down) but basically if you are healthy and solvent then the difference in lump sums has to be massive to compensate.

Advisers are pretty highly regulated now......saying they are ‘unlikely’ to give good, objective advice simply isn’t true or fair on the vast majority who do a decent job. FWIW if you’re cashing in a pension pot over £30k I think you HAVE to take independent advice.

Perkino · Mar 25, 2019

You should consider what you would need to live comfortably on considering the mortgage has been paid and then also think about what you would do with a lump sum now. Don't forget if you live another 30 years you'll need new kitchen, bathroom and such around the house plus a new car or 2 in that time

I'd imagine it would cost us £1,000 a month to live on without our mortgage so ensuring that sort of figure still comes through would be important. Also a lump sum would go on a couple of holidays and a new car.

dazzer6666 · Mar 25, 2019

Perkino said:
You should consider what you would need to live comfortably on considering the mortgage has been paid and then also think about what you would do with a lump sum now. Don't forget if you live another 30 years you'll need new kitchen, bathroom and such around the house plus a new car or 2 in that time

I'd imagine it would cost us £1,000 a month to live on without our mortgage so ensuring that sort of figure still comes through would be important. Also a lump sum would go on a couple of holidays and a new car.

You can use any lump sum to fund living expenses..........

Sirnormangall · Mar 25, 2019

Driver8 said:
Don’t tar us all with the same brush thank you.

There are many decent advisers around these days and many less rogues than there used to be (although they do exist).

I agree - the investment advice sector has been cleaned up significantly in recent years and is far more transparent on costs / charges. A good adviser won’t be cheap but will usually save you more than they charge.

Blue3 · Mar 25, 2019

seagullwedgee said:
Take as big a lump sum as you can, tax free, and take good advice to invest it wisely in a tax free environment like ISAs. If your partner is still working, make a lump sum contribution to their pension with part of your lump sum.

It's a tax free lump sum so it makes sence to take the larger lump sum as you can provided the monthly payment is enough to meet your needs you need to factor in your age how long you are likley to live until and what you want to do, I took early retirement and it's been great so far

Weststander · Mar 25, 2019

Blue3 said:
It's a tax free lump sum so it makes sence to take the larger lump sum as you can provided the monthly payment is enough to meet your needs you need to factor in your age how long you are likley to live until and what you want to do, I took early retirement and it's been great so far

Unless the (easily prepared) spreadsheet shows it’s beneficial to take a lower lump sum with a higher regular pension.

There’s no black and white answer, without being party to the offered figures and guesstimate of life expectancy.

Beach Hut · Mar 25, 2019

Weststander said:
Unless the (easily prepared) spreadsheet shows it’s beneficial to take a lower lump sum with a higher regular pension.

There’s no black and white answer, without being party to the offered figures and guesstimate of life expectancy.

Is the right answer, a massive lump sum is not everything (unless you want to spend a load)

dazzer6666 · Mar 25, 2019

Weststander said:
Unless the (easily prepared) spreadsheet shows it’s beneficial to take a lower lump sum with a higher regular pension.

There’s no black and white answer, without being party to the offered figures and guesstimate of life expectancy.

Not necessarily true.......lump sum can be invested and drawn down as required as an alternative to a regular pension income. Doesn’t have to be spunked on a Porsche and cheap hookers (although can be, obviously [emoji106][emoji16])

Cheshire Cat · Mar 25, 2019

Driver8 said:
I am an IFA with over 30 years experience

PM me if you want a second opinion once you have seen your adviser. I’m too far away to do it formally but I can at least make sure you aren’t ripped off!

He is good. [emoji106] Helped a couple of years ago when Mrs Cat took an early bath.

Weststander · Mar 25, 2019

dazzer6666 said:
Not necessarily true.......lump sum can be invested and drawn down as required as an alternative to a regular pension income. Doesn’t have to be spunked on a Porsche and cheap hookers (although can be, obviously [emoji106][emoji16])

I know, but the two offers need weighing up. To give the best return available for high class escorts.

Got something to say or just want fewer pesky ads? Join us... 😊

[Finance] Early Retirement help

Falmer WSL, not a JCL

Well-known member

Well-known member

On the road...

Well-known member

Well-known member

The Miserable Bulgarian

New member

Staring at the rude boys

On the road...

Well-known member

Well-known member

Well-known member

Well-known member

Well-known member

Well-known member

Brighton Bhuna Boy

Well-known member

The most curious thing..

Well-known member

Share this page