Scared for retirement after seeing an IFA

[Rainbowgoldover]

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

Another person to say not to use St James Place. You don't sound like you are in an awful position and a lodger to hammer the mortgage down before you stop work sounds fairly sensible to me. Look into benefits and have a chat with a different adviser.

How much are you expecting your pension pot to give you annually? It doesn’t sound large to me though you will also have your state pension eventually.

SJP are not independent, you should always look for an independent financial advisor. (And they’re rubbish)

recommendations usually work best.

and they are just advisors so they can give you a plan and explain why and you can decide whether or not to take that advice. They shouldn’t be pushing you into anything and scaring you.

also, I would apply for pip as soon as you start struggling with your illness, you can claim it whilst still working and whilst you may not get it straight away you can appeal (don’t give up if you don’t get it because it seems that lots of people get it refused but then are successful at appeal)

I’d suggest speaking to an independent financial advisor.

St James place only sell their own products and have been in the press a lot recently. Do a quick Google and you will see what I mean.

Ive recently discovered https://womens-wealth.co.uk/ and really like their openness and fee transparency. Take a look as you might find you get a different perspective on your situation.

There are lots of good reasons to put as much money into your pension as possible, particularly if you earn over £100k to reduce your tax liability however your circumstances may mean a different approach is actually more suitable.

It doesn’t sound like you’re in a terrible position so try not to worry. I appreciate that’s easier said than done.

Do not move your ISA money in to your pension. It becomes taxable as soon as you move it in to your pension, it’s in a tax free wrapper currently

Except as you get given all the tax back, that’s irrelevant. As it’s grossed up, it also beneficial. Your maths is off, and understanding…. perhaps an IFA might help

^^This. I have an IFA, and from my more experienced eyes (and I am retired) you are actually in pretty good shape.
Get an opinion from a recommended IFA and don’t use St James!