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AIBU?

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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:
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?)

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.

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?

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:
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 09:15

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:
Bruisername · 07/04/2024 09:15

Would getting a lodger be feasible? If the rent can cover your small mortgage and the bills then that would be a great way to stretch your savings

i would also recommend speaking to someone else as I have also heard they aren’t great

MarieG10 · 07/04/2024 09:15

Please think extremely carefully before you pay for any services or products from St James Place. If in any doubt read all the articles in The Times about their charging proactive and huge commissions. You will be far less able to retire after a paid session with one of these

hellsBells246 · 07/04/2024 09:16

Ask around your friends from recommendations for IFAs. St James's Place have an awful rep.

Badbadbunny · 07/04/2024 09:16

Your mistake was using StJames Place. They have a terrible reputation. Of course he wants you to put savings into a pension - so he’ll get a shed load of commission but he’ll rebate it to you in lieu of his fee which will be a few thousand! He’ll also have scared you into thinking you need more money to live on in retirement without considering all the costs you won’t have anymore! Walk away and see a local independent financial advisor.

ChanelNo19EDT · 07/04/2024 09:16

Ps, i could rent out a room in my house too, but I'd rather not. I could rent to a student who returned home to their own town at the weekend I guess. But not dying for a lodger.

Original poster
Rainbowgoldover · 07/04/2024 09:16

Thank you, St James Place approached me on LinkedIn for a free call so I thought why not !

OP posts:
Elvis1956 · 07/04/2024 09:18

300k will buy an annuity of £18k ish at 60. So I guess about £15k at 55(I may be wrong but not by much). You can check your state pension on line. Also as you are over 50 you can have a free chat with a government pensions expert.
Write down every thing you spend month by month and look at exactly how much you will need per year. For us it's 19k but that includes 2 cars an expensive holiday every year..now I'm retired at 55 I realised I don't need my car.
You can also enter your details into, say Aviva and someone will ring you to try to sell a pension. At least you will know what you can get

ChanelNo19EDT · 07/04/2024 09:20

Badbadbunny · 07/04/2024 09:16

Your mistake was using StJames Place. They have a terrible reputation. Of course he wants you to put savings into a pension - so he’ll get a shed load of commission but he’ll rebate it to you in lieu of his fee which will be a few thousand! He’ll also have scared you into thinking you need more money to live on in retirement without considering all the costs you won’t have anymore! Walk away and see a local independent financial advisor.

Yes, I looked into these companies and options a couple of years ago. I was 47 so I had 20 years to save before retirement. If there is a "product" that gives you back as much as 75 per week in retirement for the cost of 75 per week in my working life, he couldn't tell me about it.

yomellamoHelly · 07/04/2024 09:20

Not an expert, but you sound fairly sorted. Carry on putting as much away as you can. Then live off your savings for as long as you can before drawing on your pension.

Usernameisnotavailable0 · 07/04/2024 09:24

SJP does not have a great rep at the mo.

This FA will want to put the willies up you so you give him your savings so he can hit his target.

If possible can you use your income to pay off your mortgage so you at least go into retirement debt free?

lostoldname · 07/04/2024 09:24

Also factor in what benefits you will receive once you stop working into your calculations.

lostoldname · 07/04/2024 09:26

Also medical retirement clauses in your pension as you may get an earlier payment.

Isabelle70 · 07/04/2024 09:29

Could you have a part time lodger, Monday to Friday so you still have all your personal space at the weekend?

mrsbyers · 07/04/2024 09:30

Have you applied for PIP ? Sounds like you would be eligible , it’s not means tested and the payments would continue into retirement

Original poster
Rainbowgoldover · 07/04/2024 09:33

Thanks all, I don't think I will be entitled to any benefits if I keep my cash isa, this really helps give me peace of mind so I don't want to put that into my pension

Employer is more likely to make me redundant than pay medical retirement , quite an ageist industry unfortunately

Yes a Monday to Friday lodger and pay off mortgage and plough as much as possible into pension for next few years is all I can do I think.

OP posts:
Original poster
Rainbowgoldover · 07/04/2024 09:33

mrsbyers · 07/04/2024 09:30

Have you applied for PIP ? Sounds like you would be eligible , it’s not means tested and the payments would continue into retirement

Thanks , I didn't know this.

OP posts:
BroughttoyoubyBerocca · 07/04/2024 09:34

You are in a great position, If you can max invest into your pension it would be helpful but also try to enjoy life, a sunshine break?

out of interest what products were they trying to sell you?

runningpram · 07/04/2024 09:36

Agree - pls go elsewhere than St James Place. You are in in a reasonably good position.

BroughttoyoubyBerocca · 07/04/2024 09:36

Monday - Friday lodger, a professional person would work.

i would consider part time but maybe not if hoping for redundancy later.