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Original poster

Scared for retirement after seeing an IFA

81 replies

Rainbowgoldover · 07/04/2024 09:07

Morning

I had a free call with an advisor from St James Place and I'm now more confused and worried than before about my retirement planning.

I am 52, health issues mean probably only another 3 years max in current role which pays quite well.

Single, small mortgage of 40k on a London flat worth between 500 and 600k

Savings of 100k cash ISA fixed, and private pension pot of 300k

Full NI contributions since 18

I have 3 years to plan better for retirement, advisor recommend savings go into pension pot but I worry alot about having no money to fall back on if I get sick, employer offers very limited full pay for illness. 2 weeks a year I think.

I could get a lodger , don't run a car, and currently putting as much of my salary into pension pot that I can afford

However pretty disorganised and don't know what to do for the best, need to plan that at 55 I may not be able to work full time any more

Thanks in advance for any suggestions

OP posts:
Original poster
Rainbowgoldover · 07/04/2024 09:15

ChanelNo19EDT · 07/04/2024 09:12

Why are you expecting to not be able to work after 55? Is your job v physical? I'm 54 and expecting to work to 67. I am not in love with that idea but I'll go down to 4 days a week at 60.

In what way did the caller worry you? You have 35 years of contributions and another decade + to go.

I dont have avcs. I just save. I looked into avcs, and nothing was going to beat putting away 75 pw for 25 years to get back 75 pw for 20 ish years.

Hi, a degenerative condition that means I won't be able to do my role any more, or likely any related role. I'm office based so not physical work.

OP posts:
ChanelNo19EDT · 07/04/2024 09:12

Why are you expecting to not be able to work after 55? Is your job v physical? I'm 54 and expecting to work to 67. I am not in love with that idea but I'll go down to 4 days a week at 60.

In what way did the caller worry you? You have 35 years of contributions and another decade + to go.

I dont have avcs. I just save. I looked into avcs, and nothing was going to beat putting away 75 pw for 25 years to get back 75 pw for 20 ish years.

Original poster
Rainbowgoldover · 07/04/2024 09:12

Mull · 07/04/2024 09:10

When you stop work would you be willing to sell your flat and downsize (potentially move out of London?) or do you want to stay where you know? That would be the way to release a load of cash to fund retirement (or equity release which I know can have a bad press?)

Hi, I don't drive and the hospital I go to is specialist and in London so I would prefer to stay put if I can.

Although it's certainly worth thinking about that kind you

OP posts:
olderbutwiser · 07/04/2024 09:11

It all depends on what you want from retirement but you really are not in too bad a position, especially with your flat. Your main issue is tiding yourself over from finishing work to pensionable age.

Could you consider moving to a cheaper area and realising some of that equity?

And could you work part time between 55 and pension age? I assume you’ll have a full state pension when the time comes?

TheDefiant · 07/04/2024 09:10

For a start go elsewhere! St James Place are terrible.

From my very inexperienced eyes you seem to be in an excellent position.

Move to a part time role if you can, get a lodger. Keep saving, keep debt as low as possible and pay off the mortgage ASAP.

Mull · 07/04/2024 09:10

When you stop work would you be willing to sell your flat and downsize (potentially move out of London?) or do you want to stay where you know? That would be the way to release a load of cash to fund retirement (or equity release which I know can have a bad press?)