[Misc] Retirement

[trueblue]

Cashing in when I stop my Consultancy work at Christmas after 38 years because I want to use my lump sum to do stuff while I am still fit to do so e.g. an Arctic Cruise.

I'm lucky that Mrs Jakarta has an ex-Head Teachers Pension and our Mortgage is paid off. Already drawing down a small pension from my time in the Chemical Industry and I'll keep up my work at a London University for as long as I can. 5 years off State pension, but not holding out much hope for it!

Good to do it while there is still an Arctic too!

 

[sparkie]

I've a question.

Currently if my pension pot company goes bust my pension funds are fairly well protected.

If I move them into flexible drawdown are they as well protected as before or would they get swallowed up by the bust company ?

 

[dazzer6666]

I've a question.

Currently if my pension pot company goes bust my pension funds are fairly well protected.

If I move them into flexible drawdown are they as well protected as before or would they get swallowed up by the bust company ?

Doesn’t really make any difference - funds are still held by the same institution (unless you move them), just classified differently in terms of drawdown/tax treatment etc so covered by FSCS. Most managers will hold any cash (if you have a large % in cash above the FSCS limit for example) across a range of banks - whoever your fund is with will have details on their website of FSCS protection offered for cash accounts

As an example, here’s what AJ Bell do……

https://www.ajbell.co.uk/sites/default/files/AJBYI_FSCS_disclosure.pdf

You may want to read the FSCS stuff as well…..

Pensions

You could be entitled to compensation if your pension provider fails or if you have been mis-sold a pension. Read our pension advice and see if we can help.

www.fscs.org.uk

 

[East Staffs Gull]

Also, if the drawdown provider fails, non-cash investments are generally safe as they're ring-fenced and can't be used to pay creditors.

 

[sparkie]

Doesn’t really make any difference - funds are still held by the same institution (unless you move them), just classified differently in terms of drawdown/tax treatment etc so covered by FSCS. Most managers will hold any cash (if you have a large % in cash above the FSCS limit for example) across a range of banks - whoever your fund is with will have details on their website of FSCS protection offered for cash accounts

As an example, here’s what AJ Bell do……

https://www.ajbell.co.uk/sites/default/files/AJBYI_FSCS_disclosure.pdf

You may want to read the FSCS stuff as well…..

Pensions

You could be entitled to compensation if your pension provider fails or if you have been mis-sold a pension. Read our pension advice and see if we can help.

www.fscs.org.uk

Also, if the drawdown provider fails, non-cash investments are generally safe as they're ring-fenced and can't be used to pay creditors.

Thanks !!

 

[Saint Lennard]

It's all about the cheapo off-peak travel to interesting-looking places on the Easyjet network. Spent last midweek in Copenhagen. Sweet town. Tho prob worth 3 days rather than the 4 we booked. Spent one half of one day doing The Bridge thing from Denmark to Sweden. The Bridge was the star (tho it felt like a bridge) and the astoundingly comfy and affordable standard class on the train came a close second. Sweden came a poor third. Spent 90 minutes in dull n dreary Malmo - tho it seemed much longer - before heading back across The Bridge. It was either that or venture further into Sweden, next stop Lund. But that was never an option for obvious reasons *shudder*

It's all about the cheapo off-peak travel to interesting-looking places on the Easyjet network. Spent last midweek in Copenhagen. Sweet town. Tho prob worth 3 days rather than the 4 we booked. Spent one half of one day doing The Bridge thing from Denmark to Sweden. The Bridge was the star (tho it felt like a bridge) and the astoundingly comfy and affordable standard class on the train came a close second. Sweden came a poor third. Spent 90 minutes in dull n dreary Malmo - tho it seemed much longer - before heading back across The Bridge. It was either that or venture further into Sweden, next stop Lund. But that was never an option for obvious reasons *shudder*

The cheapo off-peak travel you mention. How do you identify these flights. Is there a specific site or app you use?

 

[Tom Hark Preston Park]

The cheapo off-peak travel you mention. How do you identify these flights. Is there a specific site or app you use?

For Easyjet? Simple. Just try and second-guess when they'll be least used. On the Easyjet app. During school term is always a good start. Going out and coming back the week before xmas, say 12th-19th december is usually cheap as chips for Canaries. And early January for snowy places once the xmas skiers have all gone back to work. Most retirees don't want to go there. Couple of years ago I got a flight to inside the Arctic Circle for £50 return. Bloomin magic it was too

 

[Weststander]

For Easyjet? Simple. Just try and second-guess when they'll be least used. On the Easyjet app. During school term is always a good start. Going out and coming back the week before xmas, say 12th-19th december is usually cheap as chips for Canaries. And early January for snowy places once the xmas skiers have all gone back to work. Most retirees don't want to go there. Couple of years ago I got a flight to inside the Arctic Circle for £50 return. Bloomin magic it was too

Rovaniemi, we got similar bargains in early December just before you. Yes, it was magical.

 

[Tim Over Whelmed]

So, 2024 retirement travel plans:

Jan - Mexico for two weeks
Mar - Golf Algarve
Apr - Inter railing Italy
May - Walking the Grand Union Canal
Jun - Majorca
Jul - TBC
Aug - Nowt, too busy with holiday people!
Sep - Toulouse area kayaking and walking
Oct - Nowt
Nov & Dec, Nepal, India, Sri Lanka and South Asia cruise

 

[Mellor 3 Ward 4]

So, 2024 retirement travel plans:

Jan - Mexico for two weeks
Mar - Golf Algarve
Apr - Inter railing Italy
May - Walking the Grand Union Canal
Jun - Majorca
Jul - TBC
Aug - Nowt, too busy with holiday people!
Sep - Toulouse area kayaking and walking
Oct - Nowt
Nov & Dec, Nepal, India, Sri Lanka and South Asia cruise

You missed out March 6-8

Trip to either:
Milan
Lisbon
Istanbul
Baku
etc.
etc.

 

[Tim Over Whelmed]

You missed out March 6-8

Trip to either:
Milan
Lisbon
Istanbul
Baku
etc.
etc.

Very true, although I'd probably go 2-12 Mar and make a week'ish of it!

 

[Tim Over Whelmed]

Not sure if many others do this, but each year I'm maxing out the ISA limit for Mrs OW and I, and, when the need arises, will probably draw down from my pension pot to keep this up, seems obvious to me, or am I missing something?

 

[dazzer6666]

Not sure if many others do this, but each year I'm maxing out the ISA limit for Mrs OW and I, and, when the need arises, will probably draw down from my pension pot to keep this up, seems obvious to me, or am I missing something?

Depends on what else you have and where it is and where you are with pension drawdown but highly unlikely to be a bad decision given all income/capital growth is tax free………I'm still putting money into ISAs but all that’s doing now is gradually moving stuff from less tax-efficient vehicles rather than being able to fund it from income as I used to be able to. Fully accepting these days that I’ll be taking money out of the ISAs as well - when I need a cash top-up I just look across the various pots of money and decide where it’s best to pull it from at the time (depending on investment performance etc). Have just done this in fact, but didn’t want to sell any investments outside the ISA, so sold some funds within the ISA, withdrew the cash and then replaced the ISA funds with some investments from outside.

Don’t think it would make much sense though if you were using taxable drawdown/income from your pension pot.

 

[A mex eyecan]

Not sure if many others do this, but each year I'm maxing out the ISA limit for Mrs OW and I, and, when the need arises, will probably draw down from my pension pot to keep this up, seems obvious to me, or am I missing something?

the only thing I’d wonder is the tax implications should you die before age 75. My understanding is that should that happen if your pension pot is untouched then it can transfer to your family completely free of tax, whereas your ISA would be subject to IHT, depending on value of your estate.

 

[Eric the meek]

Depends on what else you have and where it is and where you are with pension drawdown but highly unlikely to be a bad decision given all income/capital growth is tax free………I'm still putting money into ISAs but all that’s doing now is gradually moving stuff from less tax-efficient vehicles rather than being able to fund it from income as I used to be able to. Fully accepting these days that I’ll be taking money out of the ISAs as well - when I need a cash top-up I just look across the various pots of money and decide where it’s best to pull it from at the time (depending on investment performance etc). Have just done this in fact, but didn’t want to sell any investments outside the ISA, so sold some funds within the ISA, withdrew the cash and then replaced the ISA funds with some investments from outside.

Don’t think it would make much sense though if you were using taxable drawdown/income from your pension pot.

Exactly what I do as well. I choose what pot to draw from on a monthly basis, depending on investment performance. I topslice the best performers.

Your last sentence is also spot on, although - usual caveat - it depends on individual circumstances. Ignoring growth rates, drawing income from your pension at your marginal rate of tax to max out your ISA, might be a good idea if you believe your current marginal rate of tax is more than it will be when you draw your ISA funds (I know they aren't taxable). Future gazing is OK until you get it wrong.

 

[Seagull58]

So, 2024 retirement travel plans:

Jan - Mexico for two weeks
Mar - Golf Algarve
Apr - Inter railing Italy
May - Walking the Grand Union Canal
Jun - Majorca
Jul - TBC
Aug - Nowt, too busy with holiday people!
Sep - Toulouse area kayaking and walking
Oct - Nowt
Nov & Dec, Nepal, India, Sri Lanka and South Asia cruise

Have you selected your Algarve golfing location yet?

 

[Tim Over Whelmed]

the only thing I’d wonder is the tax implications should you die before age 75. My understanding is that should that happen if your pension pot is untouched then it can transfer to your family completely free of tax, whereas your ISA would be subject to IHT, depending on value of your estate.

Good point

 

[Tim Over Whelmed]

Have you selected your Algarve golfing location yet?

Yes, booked through YourGolfTravel, went last year, it was excellent, why do you have other options?

 

[Seagull58]

Yes, booked through YourGolfTravel, went last year, it was excellent, why do you have other options?

Just interested as to where you will be. I am in Vilamoura but there are cheaper alternatives.

 

[happypig]

So, 2024 retirement travel plans:

Jan - Mexico for two weeks
Mar - Golf Algarve
Apr - Inter railing Italy
May - Walking the Grand Union Canal
Jun - Majorca
Jul - TBC
Aug - Nowt, too busy with holiday people!
Sep - Toulouse area kayaking and walking
Oct - Nowt
Nov & Dec, Nepal, India, Sri Lanka and South Asia cruise

Good luck. I made a list like that for 2020....
Furthest I got was Tesco