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Retirement

Matt Hopkins said:
I'm not too sure about these trust things. I always think if they are rock solid to protect your house from care fees then everyone would have them, then if they were I'm pretty certain the government of the day would soon put a stop to them.
Can't remember who said it on here but the 7 year rule is for inheritance and not disposal of assets, which AIUI has no time limits
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I seem to remember the Queen Mother gave millions to William and Harry and they didn't have to pay any taxes on it because she died over 10 years after she gifted them the money.
 

Thanks to a divorce I've got 12 years on a mortgage to go. That'll finish, unless I miraculously manage to pay it off early, when I'm 64 (cue the music). Therefore unlikely to be retiring for a good few years yet. More's the pity.
 
Tuono said:
I seem to remember the Queen Mother gave millions to William and Harry and they didn't have to pay any taxes on it because she died over 10 years after she gifted them the money.
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I can't decide whether you are proving my point or trying to disprove it? :D
 
Roaring Chubby said:
It’s a bit worrying how inflation will erode the future value of our pots.
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Is that not where it really starts to get complicated?

High inflation means high interest rates, which means higher return on investments, so more money. But because of inflation that more money is worth less than it would have been a couple of years ago, so it gets really hard to tell if you are better or worse off?

I always liked pure maths. Economics and statistics are just weird maths.
 
DaveH said:
Is that not where it really starts to get complicated?

High inflation means high interest rates, which means higher return on investments, so more money. But because of inflation that more money is worth less than it would have been a couple of years ago, so it gets really hard to tell if you are better or worse off?

I always liked pure maths. Economics and statistics are just weird maths.
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Hopefully there is some upside, it just feels like the investments will need to perform very well just to tread water!
 
Tuono said:
I seem to remember the Queen Mother gave millions to William and Harry and they didn't have to pay any taxes on it because she died over 10 years after she gifted them the money.
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the Queen also paid no inheritance tax on what she was given from her mother's estate due to the "sovereign to sovereign" clause which John Major's government brought in. Charles didn't pay any inheritance tax when QEII died either, saving him around £200 million or so iirc
 
Really useful thread this. Gives some good pointers to think about 👍 Employers closing down DB schemes causes hell on but in hindsight doesn’t seem the worst thing in the world if you can build up a canny DC pot alongside it and have best of both worlds
 
A Financial Adviser that was given control of my/our retirement lump sums suggested that £100k (outside of savings & investments) in easily available cash should be retained for eventualties. Our mortgage has been redeemed and we live comfortably within our current joint income of around £2.5k pm, we have a one year old car + a second smaller one for day to day short journeys, take 4-6 wks of holidays, outgoings are covered and cash surplus goes into the bank. It purely depends on individual desired lifestyles as to "how much covers it".
 
70s traveller said:
A Financial Adviser that was given control of my/our retirement lump sums suggested that £100k (outside of savings & investments) in easily available cash should be retained for eventualties. Our mortgage has been redeemed and we live comfortably within our current joint income of around £2.5k pm, we have a one year old car + a second smaller one for day to day short journeys, take 4-6 wks of holidays, outgoings are covered and cash surplus goes into the bank. It purely depends on individual desired lifestyles as to "how much covers it".
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A £100k "emergency" fund sounds like a lot to just have sitting there.
 
DaveH said:
A £100k "emergency" fund sounds like a lot to just have sitting there.
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That's what I thought but he was adamant that was the figure the company suggest. That's also to cover two persons and possibly because of the reason that I had to be ill-health retired at 55yo so possibly health costs may also be a factor in it.
monkeytassle said:
I suspect that number of people will be way higher than you think.
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And being a former NHS employee i can agree to that based on circumstances I've witnessed.
 
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70s traveller said:
That's what I thought but he was adamant that was the figure the company suggest. That's also to cover two persons and possibly because of the reason that I had to be ill-health retired at 55yo so possibly health costs may also be a factor in it.

And being a former NHS employee i can agree to that based on circumstances I've witnessed.
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They might've said that based around 3 years ish pension/income (36months x £2.5k) I know it's £90k but near enough. If you have NHS pension is that not a final salary type?
The 3 years cash is sometimes mentioned for DC pensions so you can pull out cash instead of pension if the markets have a downturn
monkeytassle said:
I suspect that number of people will be way higher than you think.
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Probably not
 
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