Drago
Legendary Member
- Location
- Suburban Poshshire
Looking forward to my pension in April, and at 48 I'll be young enough to enjoy it.
Looking forward to my pension in April, and at 48 I'll be young enough to enjoy it.
I'd like to resurrect an old thread if I may.
My problem is that I'm hearing rumours that my employer is considering changing the terms of their defined benefit scheme such that my plan to retire at 55, in 3.5 years time, is suddenly no longer viable and I'm going to have to keep working to at least 59. So that gives me 8.5 years to accumulate some further savings.
So my question is what savings options should I be looking at that would give a worthwhile return over such a short period ?
The only option I know anything about currently is to buy AVCs from my employer. The returns look pretty woeful but they are taken from salary before tax so if I was to buy say £500 of them a month that would be a significant reduction in my tax bill.
Further thoughts welcome please.
I thought you were a Sergeant; since when did they get their hands dirty?It's small consolation for 3 decades of working abroad, being shot at, stabbed, having broken bones, spat on, pissed on, shift work, generally dealing with the filth and dregs that no one else wants to know about, and having few transferable skills at the end of it. I'm not complaining, but I've definitely earned it the hard way.
I've been offered anti piracy security work on ships off the horn of Africa, and the pay is mind bending buy I can't leave Mrs Drago cos of her MS, so it's self employment for me. Still want to work, earn and contribute. I'll be in my Fifties before my wee one has finished primary school an I can fully retire back to Shetland.
As suggested above - get a SIPP
You are able to withdraw 25% of the final scheme value tax free -so ideally you withdraw it when not working between the ages of 59 and 66 so as to use your personal allowances and avoid any tax whatsoever.
I thought that the 25% option was completely tax free ? Are you saying that it is still classed as income (and so liable to income tax?)
I was hoping to take out approx £20k from a previous pension to tie us over a few years until we can downsize.
Thanks for the replies so far. What would be the advantages/disadvantages of a SIPP verses buying AVCs ?
^This.A SIPP is likely to be much more expensive than AVCs. Close to retirement with affordability considerations, if it were me I'd do AVCs for the security.
(NB - this isn't advice! I'm not allowed to give advice.)
Lucky sod. 46 and got to work until 67 !