Optimising What Remains in Retirement
Optimising What Remains in Retirement
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Discussion

AdviceHunter

Original Poster:

40 posts

145 months

Friday 8th March 2019
quotequote all
Looking for a bit of guidance before deciding whether to engage an IFA, though suspect that would be best. I have left details intentionally vague.

Couple of 67 and 61. Both retiring next year. 61 year old has full state pension and a small workplace pension. 67 year old has a non-full state pension and around £100k cash in a standard savings account. House worth around £300k, paid off.

Is there anything that can be done with the £100k savings to optimise it for a monthly draw down? Drawn down over the next ten years could provide a modest income for the most active retired years.

The fear from all involved is that it will instead get frittered away over a couple of years and the couple will be left to live out their days on, what would be the equivalent of, two state pensions only. That would leave downsizing the house to release some additional funds, though those would likely face the same fate as the original savings!

Granted, not a dire straits situation but there is some urgency to make the most of the position. Any guidance or comments appreciated.

SunsetZed

2,997 posts

200 months

Friday 8th March 2019
quotequote all
Not sure if they've missed the boat due to their age but could the 67 year old buy some additional years to increase their state pension as they're currently not getting the full amount?

On average buying additional years to reach full state pension works out as a very good investment.

xeny

5,477 posts

108 months

Friday 8th March 2019
quotequote all
Given you're both still working, it's presumably worth throwing inco into pensions now, while living off the existing cash, simply to avoid paying tax on your current income?