F
Fen Canary
Member
Take the lump sum, go full Keith Richards/Wolf of Wall Street and go out with a bang!
I’d rather book myself into the Dignitas clinic than take up golf.Or take up golf, great social sport and people are very accommodating. I'm shit at golf but made quite a few friends around the course.
I can feel your quandary of this. Of course you've asked a question that can't really be answered because it's such a personal decision and you will go with your instincts after a good period of research. None of us know how long we will live. We know the average ages for life expectancy. What we often forget is that even if you take say 80 years then it may be preceded by deteriorating health of years. If you've no pre-existing conditions then a positive...plus there's family history that might guide you in terms of grandfathers etc. Then, there are your plans post retirement. More travel? Taking up that hobby you've never given enough too? Things you'd love to acquire ( I don't know...a piece of art, a big piano etc etc!) but couldn't just bring yourself before to invest in it. Would you wish to give your children money before you snuff it? i.e. when they need it. You can give amounts each year without bothering the tax authorities. Warren Buffet wanted to leave himself with just a dollar by the time he was dead and not leave all his money subject to the clutches of the state. I can recall many old people (through my work) who saved and saved and died with £20k unused in the bank. Always a sad thing for me when I think back... (we're talking about working men and women who've saved carefully through their lives and living very frugally). Care home costs took away thousands of my mothers' income and likewise is about to in my wife's mother's case. You can rattle through well over £1000 a week (maybe up to £1500). Hard earned cash.I think the pension thing is probably my biggest thing I need to research. I didn't realise there were options for what you do with your pot, I'm still torn about taking the 25% tax free lumper, I can see arguments for both sides.
Like Ricardo says, stuff as much into your pension pot s you can in your final working years to take advantage of the tax break. Taking 25% is a good move because it is tax free and put it into an ISA if you don't need to spend it, because the ISA is tax free too. I chose to put my 25% in a share-based ISA for growth and have been lucky so far as the stock market is doing well (surprisingly). A lot of advisors suggest putting your pot into a cash ISA to reduce the risk, but at the moment Government gilts are in freefall 9which a lot of cash funds invest in) and it is not as risk free as it usually is. But do your own research as we all have different needs and there is a lot of information out there.I think the pension thing is probably my biggest thing I need to research. I didn't realise there were options for what you do with your pot, I'm still torn about taking the 25% tax free lumper, I can see arguments for both sides.
Yeah I have been doing a fair bit of research, I have money in premium bonds, a decent amount in a cash ISA and a small amount in a shares ISA, that isn't doing particularly well, but I can choose where I invest it, so should pay more attention to it. Not sure if I will take the tax free amount or not, as I plan to be maxing my allowance out for the next 3 years.Like Ricardo says, stuff as much into your pension pot s you can in your final working years to take advantage of the tax break. Taking 25% is a good move because it is tax free and put it into an ISA if you don't need to spend it, because the ISA is tax free too. I chose to put my 25% in a share-based ISA for growth and have been lucky so far as the stock market is doing well (surprisingly). A lot of advisors suggest putting your pot into a cash ISA to reduce the risk, but at the moment Government gilts are in freefall 9which a lot of cash funds invest in) and it is not as risk free as it usually is. But do your own research as we all have different needs and there is a lot of information out there.
Yes, it's sensible to keep active as long as you can. Our bodies will likely give out before our bank accounts. My back and legs are beginning to go but I'm still ok up top.But frankly, as a translator, as long as my faculties work it makes more sense to keep working - keeps the mind active and sharp, and lowers risk of dementia and other brain-related conditions. Just means I take on a bit less work.
This is partly my motivation for finishing early. My job is hard graft, I go to sea for 5 weeks and work a 12 hour shift every day of that. I'm 57 and in reasonable fitness / shape, but I recognise that this body has to last me, and bits really are starting to creak (Don't even start me on kneesSlightly different for me. I'm a long way off retirement (I'm 46) and plan to stay as active as long as I can for my own sanity. However I also plan on retiring from Posting sooner rather than later as 25 years pounding the streets is starting to take its toll on my knees/hips.
I need to find a nice job sitting down or find a way of making Lego building pay the bills...
Do you ever wear long trousers?Slightly different for me. I'm a long way off retirement (I'm 46) and plan to stay as active as long as I can for my own sanity. However I also plan on retiring from Posting sooner rather than later as 25 years pounding the streets is starting to take its toll on my knees/hips.
I need to find a nice job sitting down or find a way of making Lego building pay the bills...
Save your knees for walking footballThis is partly my motivation for finishing early. My job is hard graft, I go to sea for 5 weeks and work a 12 hour shift every day of that. I'm 57 and in reasonable fitness / shape, but I recognise that this body has to last me, and bits really are starting to creak (Don't even start me on knees)