****ty life

[Ivor Windybottom]

VWRP is a "buy and forget" tracker. It is diversified across 3,500 different companies. Let's say you had 50k in 2023, had you done this, then, you'd have nearly 100k in your pension. That would have given you 4k a year as a pension on top of your state pension.

Disclaimer required: The value of your investment may go down as well as up. Previous performance is not a guide to future performance. Never invest what you can not afford to lose. Labour are in power, they're utterly incompetent, much worse than even their own terrible track record and are going out of their way to shag the economy, so it is very likely that stock market values may be decimated at some point fairly soon.

 

[Old Salt]

Good advice from your daughter. Sounds as if she has her head screwed on. She will also “feel” better if her Dad is sorted with accommodation.

Our local facebook pages came up trumps when a guy appealed for a hand up after being given a council flat after living in a tent. He had a small car and was unable to pick stuff up. People were happy to drop it off to him and did so willingly.

Get yourself sorted and make your daughter happy, she will work out fine. Good luck.

 

[JohnD]

Lets say. Koolpic has £50k in savings generating interest at 3.5%. £1,750 per year. Assuming he has not maxed his pension contributions out (60k) he can move these savings to a SIPP.

The amount he can move into a pension is limited. It's possible his annual taxable earning are less. For most ordinary people, the max contribution is your taxable earnings in that tax year. Basic tax will be rebated into the pension fund. If you have low, or no, taxable earnings, you can contribute up to £2880 per year (which will receive basic tax rebate and be grossed up to £3600 in the pension, even if you did not pay tax. This is a special concessions to low earners enabling them to build up a modest pension.

 

[JohnD]

She is all for me accepting the council flat.

So am I.

 

[Koolpc]

Good advice from your daughter. Sounds as if she has her head screwed on. She will also “feel” better if her Dad is sorted with accommodation.

Our local facebook pages came up trumps when a guy appealed for a hand up after being given a council flat after living in a tent. He had a small car and was unable to pick stuff up. People were happy to drop it off to him and did so willingly.

Get yourself sorted and make your daughter happy, she will work out fine. Good luck.

Thank you. Appreciate that.

 

[Koolpc]

So am I.

Cheers. Thank you.
Seeing council tomorrow. See how it goes.

 

[JohnD]

As you're planning to peg out eventually, you can name your daughter as the beneficiary to receive any value remaining in your pension fund after your death. If you took out an annuity there will probably be none.

If you are not yet retired, and not in poor health or a smoker, you should have a 10-20 year horizon in your plans for your investment to grow, and for you to draw from it.

You are not obliged to take an annuity* and can take partial encashments at irregular intervals, according to your needs and desires. Of each of these, 25% will be tax free, and 75% will be taxed at your current rate. Due to a quirk of the tax laws, your first such encashment may be taxed at a higher rate, because the tables assume that you will be taking the same amount every month for the rest of the tax year.

So if you take an encashment of £1333 in April, a quarter of it (£333) will be tax-free, and the rest (£1000) will be taxed by PAYE on the assumption that you will have eleven more withdrawals this tax year. Eventually, you will get a tax code that reflects your real annual income, and can reclaim excess tax paid. Your pension income will affect your entitlement to income-related benefits. With encashments you can alter the amount of pension income if you wish.

*Some pension companies, but not the II SIPP, will not allow encashments after age 74.

 

[Koolpc]

As you're planning to peg out eventually, you can name your daughter as the beneficiary to receive any value remaining in your pension fund after your death.

If you are not yet retired, and not in poor health or a smoker, you should have a 10-20 year horizon in your plans for your investment to grow, and for you to draw from it.

You are not obliged to take an annuity* and can take partial encashments at irregular intervals, according to your needs and desires. Of each of these, 25% will be tax free, and 75% will be taxed at your current rate. Due to a quirk of the tax laws, your first such encashment may be taxed at a higher rate, because the tables assume that you will be taking the same amount every month for the rest of the tax year.

So if you take an encashment of £1333 in April, a quarter of it (£333) will be tax-free, and the rest (£1000) will be taxed by PAYE on the assumption that you will have eleven more withdrawals this tax year. Eventually, you will get a tax code that reflects your real annual income, and can reclaim excess tax paid. Your pension income will affect your entitlement to income-related benefits. With encashments you can alter the amount of pension income if you wish.

*Some pension companies, but not the II SIPP, will not allow encashments after age 74.

I got a small pension already paying out a small amount monthly from when I worked in the University. I had some cash and an annuity from there.

The only other pensionfor me left is the state one, in 5 years....and savings I have...

 

[JohnD]

I got a small pension already paying out a small amount monthly from when I worked in the University. I had some cash and an annuity from there.

The only other pension is the state one, in 5 years....

But if you have savings, you can put some or all of them into a private pension. My choice is a SIPP. You do not need to be an active or knowledgeable investor if you choose some broad based trackers. There is no tax on gains inside the pension, only income tax, when and if you draw some out.

Some Brexers were annoyed that I shifted my balance towards Europe funds ten years ago and did quite well.

 

[Koolpc]

But if you have savings, you can put some or all of them into a private pension. My choice is a SIPP. You do not need to be an active or knowledgeable investor if you choose some broad based trackers. There is no tax on gains inside the pension, only income tax, when and if you draw some out.

Some Brexers were annoyed that I shifted my balance towards Europe funds ten years ago and did quite well.

I am too scared to try investing. I know, i am mad. Just not knowledgeable enough.

 

[pete01]

I am too scared to try investing. I know, i am mad. Just not knowledgeable enough.

Me too but ive been looking at this vanguard thing, 5k in and 50 quid a month over 20 years, thinking about doing it for my son....no clue what im doing by the way.

 

[JohnD]

I am too scared to try investing. I know, i am mad. Just not knowledgeable enough.

You could have a managed pension, and leave it to to the company to run it.

The tracker funds are rather like that, you say "I want you to invest my money in all the companies in the world " (or, in Europe, or UK, or Japan, or wherever) and they do that (more or less) and provided the companies, as a whole, make more money, in the long run, your investment grows. You will not find a ten-year period where that did not happen.

Some of the pension companies reduce your investments as you get older, and hold more in cash and bonds, on the theory that there might be a terrible crash. But it is more likely that you will lose by holding cash, because it is pretty certain to fall behind inflation, and has zero chance of investment growth.

 

[Koolpc]

You could have a managed pension, and leave it to to the company to run it.

The tracker funds are rather like that, you say "I want you to invest my money in all the companies in the world " (or, in Europe, or UK, or Japan, or wherever) and they do that (more or less) and provided the companies, as a whole, make more money, in the long run, your investment grows. You will not find a ten-year period where that did not happen.

Some of the pension companies reduce your investments as you get older, and hold more in cash and bonds, on the theory that there might be a terrible crash. But it is more likely that you will lose by holding cash, because it is pretty certain to fall behind inflation, and has zero chance of investment growth.

Okay. Appreciate your advice.

Nice to have a decent posting between us. Thank you...