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Retirement

Ned Land said:
Which DB pension scheme is it? I’m a member of a university LGPS and we have early retirement deductions, but there’s also a very esoteric 85 year rule which reduces the reductions (!) when you are over 60 and have 25+ years service.

My plan is to retire at 57 using a SIPP and ISAs but to defer the DB until I’m over 60.
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I guess the same as you, USS?

Deferring is an option to look at at the time. It will be the balance of using all the savings and investments quicker but deferring the DB, or getting the DB sooner, getting a lower amount, using the savings more slowly, but paying less tax.

A lot of that will depend on tax and interest rates at the time, to see which is the most worthwhile.
Crook said:
I'm similar. If I was to retire now (58) things would be a bit tight. Leave it to 62 and I'm (relatively) minted. I'm going to go at 60, a happy in-between (hopefully)
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That is sort of what I'm thinking but looking at making the 58 comfortable.

There is the option of going for something easier part-time at 58, so I don't need either pension or savings and increase my free time.

The pleasing thing was that it makes absolutely no sense to continue working until 67. I would have far more disposable income than I have now.

What I have not factored in is if my wife does not want to retire at the same time and what her private pension might pay out. THat could keep 58 on track. Hers is fairly low and she did not pay into it at all for years after going freelance. But if it gives us say £5k per year that over 9 years between 58 and 67 means that is £45k less savings to find. If that is in the 6 year mortgage free period (52-58), that means £625 less per month to save. That is pretty significant. Time to look up what my wife has in her pension, because I have ignored it up until now!
 
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DaveH said:
I guess the same as you, USS?

Deferring is an option to look at at the time. It will be the balance of using all the savings and investments quicker but deferring the DB, or getting the DB sooner, getting a lower amount, using the savings more slowly, but paying less tax.

A lot of that will depend on tax and interest rates at the time, to see which is the most worthwhile.

That is sort of what I'm thinking but looking at making the 58 comfortable.

There is the option of going for something easier part-time at 58, so I don't need either pension or savings and increase my free time.

The pleasing thing was that it makes absolutely no sense to continue working until 67. I would have far more disposable income than I have now.

What I have not factored in is if my wife does not want to retire at the same time and what her private pension might pay out. THat could keep 58 on track. Hers is fairly low and she did not pay into it at all for years after going freelance. But if it gives us say £5k per year that over 9 years between 58 and 67 means that is £45k less savings to find. If that is in the 6 year mortgage free period (52-58), that means £625 less per month to save. That is pretty significant. Time to look up what my wife has in her pension, because I have ignored it up until now!
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USS and LGPS are the main non-academic HE schemes. USS is part DC/DB I think but LGPS is 100% DB.
 
Ned Land said:
USS and LGPS are the main non-academic HE schemes. USS is part DC/DB I think but LGPS is 100% DB.
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USS is split. Up to £71k is DB and anything over goes into DC. For a while they dropped the DB threshold to £41k, then members kicked off and it went back, so everyone earning over that ended up with a bit of DC. Then you can pay extra into DC too. I stuck £50 a month in recently and found it lowered my tax by £30, so I kept that as a regular thing. Basically costs me £20 a month to save £50.
 
Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.
 
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Ned Land said:
Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.
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Was he recommended to you?
Sounds like you have big numbers to consider if £1800 is good value
My mate hates FA and has done it all himself but the whole ifs and how's bores me
I like money ,who doesn't, but talking it ,zzzz😄
 
JAZZMANB said:
Was he recommended to you?
Sounds like you have big numbers to consider if £1800 is good value
My mate hates FA and has done it all himself but the whole ifs and how's bores me
I like money ,who doesn't, but talking it ,zzzz😄
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The fee isn’t based on the value of assets.

He wasn’t recommended but I haven’t used an IFA for about 20 years.

We are speaking soon with a different one who worked with the in-laws.

I will still probably go ahead with the free initial meeting as I could prise out some answers anyway.
 
Ned Land said:
Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.
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It's not massively out of line but as in all things its all about the quality of the advice provided.
A good IFA is worth their weight in gold a bad one...
In my case whilst I thought I was reasonably informed on financial matters I would have made poor decisions.
Personal recommendation is normally a good reference point but in my case the people recommending IFA's really did not know about finances.
Sorry to say but it's a bit of a minefield.
On balance I would seek professional advice but as to your particular circumstances I cannot comment.
Sorry if this does not help
Good luck
 
OldNewtown said:
It's not massively out of line but as in all things its all about the quality of the advice provided.
A good IFA is worth their weight in gold a bad one...
In my case whilst I thought I was reasonably informed on financial matters I would have made poor decisions.
Personal recommendation is normally a good reference point but in my case the people recommending IFA's really did not know about finances.
Sorry to say but it's a bit of a minefield.
On balance I would seek professional advice but as to your particular circumstances I cannot comment.
Sorry if this does not help
Good luck
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Thanks. It’s opened a minefield as the IFA has a stipulation that he meets with a couple, not only the person who asks for advice. Which makes sense for tax reasons etc.

But my envisaged early retirement doesn’t align with my wife’s expectations! I’m not preparing meals, cleaning etc. when she’s at work, even though it’d be fair for me to do those chores.

It looks like I’ll be retired and single :lol:

Can anyone recommend a decent divorce lawyer?
 
Ned Land said:
Thanks. It’s opened a minefield as the IFA has a stipulation that he meets with a couple, not only the person who asks for advice. Which makes sense for tax reasons etc.

But my envisaged early retirement doesn’t align with my wife’s expectations! I’m not preparing meals, cleaning etc. when she’s at work, even though it’d be fair for me to do those chores.

It looks like I’ll be retired and single :lol:

Can anyone recommend a decent divorce lawyer?
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I retired 6 years before my wife and I did pick up some of the chores. However I still had plenty of time to do the things I wanted to do. A bit of give and take isn't a bad thing.
It was much, much, better than still working 😆
 
Ned Land said:
Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.
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£1,800 sounds like a lot. I am saying that from a position of having no experience with IFAs.

I assumed an advice session would be a couple of hundred at least. If they are doing some ongoing management then fine, but that sounds like a hell of an hourly rate they are on.
 
Ned Land said:
Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.
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I got some free advice from someone recommended on the gov pension wise site.
However for anything further he wanted over £2k just to run figures through a computer to see if I could retire at 60.... I'm pretty confident I can. Then more if I wanted actual investment advice on a pension. Whilst this my only experience it appears a good quote but tahs assuming he's a good advisor and no idea how you know that.
 
TAD said:
I got some free advice from someone recommended on the gov pension wise site.
However for anything further he wanted over £2k just to run figures through a computer to see if I could retire at 60.... I'm pretty confident I can. Then more if I wanted actual investment advice on a pension. Whilst this my only experience it appears a good quote but tahs assuming he's a good advisor and no idea how you know that.
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Yes he was going to run multiple scenarios etc. and produce a 15 page report for the strategy (£1800) then it’s extra for the implementation details etc. etc.

To be honest I might just stick to fiddling around with my spreadsheet and watching videos on YouTube about different strategies.
DaveH said:
£1,800 sounds like a lot. I am saying that from a position of having no experience with IFAs.

I assumed an advice session would be a couple of hundred at least. If they are doing some ongoing management then fine, but that sounds like a hell of an hourly rate they are on.
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There is a free initial meeting but I was expecting a cost of £2-300 for actual official advice!
 
It all seems like crazy numbers. Googling says it can be a percentage (1-2%) or a fixed fee from several hundred to £5k. I've clearly been in the wrong line of work if a few hours effort can be worth £5k. That said, if they can save you more than they cost then its worthwhile, the problem is you walk into it mostly blind and even afterwards you have little way to gauge whether they did a good job or not.
 
Ned Land said:
Yes he was going to run multiple scenarios etc. and produce a 15 page report for the strategy (£1800) then it’s extra for the implementation details etc. etc.

To be honest I might just stick to fiddling around with my spreadsheet and watching videos on YouTube about different strategies.

There is a free initial meeting but I was expecting a cost of £2-300 for actual official advice!
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For a one-time only fee of £500, I'll read the 15 page report and summarise into a 1 page report on whether it is any good or not 😉
 
Nobody tried to run the numbers through AI yet?
I'm busy doing it with Grok, it produces a very comprehensive report.
 
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Ned Land said:
Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.
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Is it not something you could just do yourself? All the information is out there on how to 'work' your pensions. It really isn't that hard.
I never looked into an IFA so don't know how they really work but are you saying you pay the fee then he says do this that and the other then that's it ? No ongoing fee or any more advice? What happens when your circumstances change, do you just go back and pay another £1800 or whatever the fee is?

I always laugh at an IFA called Reeves, seem to be based up here. They do stuff on you tube, I know it's all clickbait, but they'll have stuff like can you retire at 62 with £2.50. Then goes on to say well you can if you take more risk with your money or take a part time job. No shit Sherlock I'd be pissed off if I paid a fee for that sort of advice :D
 
Ned Land said:
Yes he was going to run multiple scenarios etc. and produce a 15 page report for the strategy (£1800) then it’s extra for the implementation details etc. etc.

To be honest I might just stick to fiddling around with my spreadsheet and watching videos on YouTube about different strategies.

There is a free initial meeting but I was expecting a cost of £2-300 for actual official advice!
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A friend of mine is 48, left her job in accounting and finance for a charity that was a bit of a basket case and is wondering what to do next with her life. I think I should persuade her to become a pensions and investment expert.
 
Matt Hopkins said:
I always laugh at an IFA called Reeves, seem to be based up here. They do stuff on you tube, I know it's all clickbait, but they'll have stuff like can you retire at 62 with £2.50. Then goes on to say well you can if you take more risk with your money or take a part time job. No shit Sherlock I'd be pissed off if I paid a fee for that sort of advice :D
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One I watched on YouTube was some IFA saying how he helped on bloke go from being penniless at 75 to potentially having £1m in savings at 100.
Something about handing his business over to his son and his son pays him a wage for doing so. This wage is invested and Bob's your uncle. Because everyone has a business they are able to pass to kin for a profit don't they.
 
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