Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments
The problem is taking 25% tax free cash what are you going to do with it? You can only put £20k a year into an ISA, so if you have a big fund, say, £800k, what do you with £200k? You can invest it, but the you'll be taxed on the investment, so you might as well just use the full £800k to buy an annuity.
I took 2/3's of an old DB Pension and moved it to a SIPP 5 Years ago, it has grown nearly 40% and this will mean it doesn't end if I do. I appreciate an annuity can provide a spouse pension but I wanted to be able to pass some of it onto my children. Obv Rachel Thieves is trying hard to scupper my plans but retirement abroad may scupper her plans to IHT whatever I leave behind.
@@markkenyon8760 Why should you leave a pension to your children? It's YOUR pension! Even leaving it to you wife is unnecessary if she has her own arrangements.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments
Is the money in the drawdown (crystallised) pot still growing as an investment? Or is it only the uncrystallised which may grow?
It can be invested just the same as before. It is still in your pension account
The problem is taking 25% tax free cash what are you going to do with it? You can only put £20k a year into an ISA, so if you have a big fund, say, £800k, what do you with £200k? You can invest it, but the you'll be taxed on the investment, so you might as well just use the full £800k to buy an annuity.
I plan to drip into ISA across my wife and I. Plus put the remainder in Premium Bonds to drip into the ISAs. No tax on bond wins.
I took 2/3's of an old DB Pension and moved it to a SIPP 5 Years ago, it has grown nearly 40% and this will mean it doesn't end if I do. I appreciate an annuity can provide a spouse pension but I wanted to be able to pass some of it onto my children. Obv Rachel Thieves is trying hard to scupper my plans but retirement abroad may scupper her plans to IHT whatever I leave behind.
@@markkenyon8760 Why should you leave a pension to your children? It's YOUR pension! Even leaving it to you wife is unnecessary if she has her own arrangements.
@@terrybrown3486 No interest on premium bonds. It's basically a glorified version of Bingo.