Bugger me, I seem to have accumulated half a million

[GreatPotato]

I've always had a decent job in my world, but not by MN standards and been a saver (not enough to make me a higher rate taxpayer).

I put aside some cash every month in a cash ISA, premium bonds and paid into savings policies etc. with the idea that I am saving for a rainy day and my eventual retirement. Haven't really paid much attention to how it was accumulating, for which I realise I need a slapped wrist.

Recently some savings policies have matured and I've been the beneficiary of a life policy. Tallying it all up for the first time in years it's all just a few pounds short of half a million!

Now, obviously the bank is not the right place for it, but how in earth do I go about finding a home for it?

I actually have fairly decent pension provision through employer schemes, but I'm thinking this cash gives me the option to retire early without reducing the annual pension amount. I.e. I can wait until retirement age to draw the pensions, even if I'm not working .

Mortgage is paid off.

For me a real case of look after the pennies and the pounds look after themselves. I've never felt that I was scrimping, just being sensible. There's nothing material that I want and don't have.

@FlibbertyGibbitt

This is a bit tasteless when there’s another post about someone losing their £60 universal credit and wondering how they’ll manage ….

It's not like OP has mugged them. Get a grip FGS.

@Couchbettato

Op you need to speak to a certified personal accountant and possibly look to reinvest some of that money and then you can use the dividends of those investments to live off comfortably in retirement.

Why would you look to receive dividend income? Past your £2k personal allowance it is not great advice, as we do not know the OP's tax status.

@OverTheRubicon quite

Well done, OP!

However, I really hope you have enjoyed your life while you have been saving your money. Whilst I am a firm believer in having savings and being sensible with finances and cutting one's cloth accordingly, I do also think that life is short and we are a long time dead, so all those saying, 'we saved everything, we didn't have any holidays', I can't help but think that's a bit sad, squirreling all of your cash away but merely 'existing'. I believe there should be a middle ground.

That’s great OP! Enjoy retirement, or whatever comes next for you.

It’s a great thread - ideas on how to save with minimal impact, depending on circumstances obviously, and what the outcome could potentially be.

To those crying on about others in dire straits - OP may have sacrificed lots in life to choose how she’s lived. Not everyone has children, so huge cost saved there. Not everyone parties, so saved there, not everyone smokes, so saved there, not everyone drinks, so saves there, not everyone buys coffee or lunch out, so saves there. Everyone lives their lives differently so will be in a different position.

Should the OP ever need elderly care then she will have to pay for that herself while others with no savings will get theirs free .. it works both ways.

@Whinginadeville

I'm in a not dissimilar position I've never even earnt the National average wage and was a struggling single parent for many many years but I'm cautious, not interested in expensive holidays, gadgets or clothes and saved regularly even if it was tiny amounts. I cleared my mortgage 6 years early and continued investing the mortgage amount as well. I've taken early ish retirement (58) and am looking after dgc. Instead of them paying outrageous nursery costs. We'll done you've earned it but this post will bring out some very nasty, bitter people.

You sound lovely and v savy. Well done too.

@futureghost

I actually don't believe that anyone who has been that financially astute for 35 years, and has moved money around for the best deals and to make sure she stays within the £80k per institution (which is considerable work as you have to know which banks are owned by which) could have done all that and still failed to realise how much money they have. The sort of person who does all that knows exactly how much money they have and where it is. You have to keep track of it as you are moving it around, especially as it accumulates in value.

Well, the op was pleasantly surprised, hadn't realised how it had accumulated. I can certainly understand that, I rarely know how much money I have.

However now is the time for the op to make it work for her so she never has to worry in the future.

It's very encouraging when you hear of someone who saves a little here, a little there and ends up with a decent nest egg.

I’m very happy for you. You’ve done very well and will hopefully have a comfortable retirement, when the time comes.
I can understand that you want to share your happiness and encourage others, but most people aren’t in a position to be able to do so.
Even more so at the moment, people are having to make difficult decisions about finances due to the current crisis with covid, energy prices, and the new tax that will be introduced. Some people don’t have the luxury of being able to put some money away for their future, it’s very much hand to mouth. Many people worry about their future because of this.
I think the post is a little bit insensitive but I am trusting that you didn’t mean it to be so.

Good for you too, Whinginadeville.

Congratulations OP, as the saying goes look after the pennies and the pounds will look after themselves. Maybe a good idea to seek advice from a financial adviser. I don't think it's fair of previous posters claiming the OP's post is tone deaf of course it's not, there will always be people in life who struggle financially for various reasons and the OP posting will not change this. She has clearly made saving a priority in life and can now reap the rewards from this.

@TrueGrit54, any resources you'd recommend to anyone interested in doing something with their (far far punier in my case!) savings?

We save & have found these boards very useful. But a lot of our savings have gone & then had to built up again. Eg save for a house, save for furnishing that house, save for a car, save for maternity life, childcare, pensions. We are fortunate to be able to do that.

However to be able to put £500 a month away for 35 years & never touch it is incredibly unusual.

In answer to OP, I'd seek to invest a little in something a bit riskier that might accrue a decent return as a bit of fun I could afford to loose, invest some in future proofing my home against rising costs (air source or ground source heating, decent insulation, and some solar perhaps, for example, maybe an electric car to keep running costs down) - you'll want to minimise outgoings for retirement, keep a bit in easy access safe savings - you might need something doing to the house.
Or look to relocating to an area of the country I've always wanted to live in a future-proofed home.

Either way I'd look for local recommendations of a registered IFA.

It's definitely the Oh whoops, how did that happen and I need a slapped wrist that is causing the negative comments.

I'd suggest you live a little OP. It sounds like you've been very cautious with money, have you saved at the expense of enjoying life?

Quit work, travel, see the world, live abroad, Portugal has a good visa scheme, do yoga everyday in the sunshine, learn a language, learn to surf. Use the money for good, it can fund you while you volunteer to help those less fortunate. Invest in a start up to give someone a chance. There's loads you could do for good.

@Stuffin

All those piling on to the OP. This is the money board so anything to do with money or lack of it surely belongs here.

They didn't go onto a thread where another OP was worrying about their lack of money to boast. They started their own thread.

This. What is the point of some people who can't read something, realise they have nothing to contribute and just leave it alone.

@Weirdlynormal thanks for that explanation. I think we have similar investing opportunities or funds in the US. We call them government bonds though. That said, the return may not be as high because they’re so secure, if you see what I mean.

GILTS are government issued long term securities; government debt placed with investors through the bond markets, paying a rate of interest reflecting the credit-worthiness of the issuer, as rated by various international agencies like Standard & Poors.

There's absolutely nothing to be snippy about the amount the OP has.
In fact it's sensible and lots of people do the same.

But I agree she knew exactly what she had. You get emails from your ISA providers and pension providers and yearly statements
So the whole "I've just discovered this!" Is absolute bollocks and that's what's winding people up here.

If you've been actively managing accounts to ensure they don't go over £80k not sure how it's a surprise.

What/where can I invest in to get the same returns as the OP?

@Orland

£500 a month at 5% for 35 years would be £568,000

Beauty of compound interest.

Whilst most on this board probably don't fritter £100 a week, that's all it would take.

Do you think she was saving £500 a month 35 years ago from a Saturday job?

I notice you were a beneficiary of a life insurance - I assume this was because it matured which would explain why the amount has suddenly increased. Given your age I would also assume inheritances built up your savings.

If it was all off savings and you are not including the property you own that is very impressive. My advice live a little - give up work and enjoy the years as they go by so quickly.

You can’t put away a little here and a little there and come away with half a million. That was my point upthread. Either there has been some very serious saving indeed, canny investing, a windfall or two to bolster the savings or some combination of those. Saving is great, investing is something more women should do and compound interest is a bit of a miracle, but the message in the op is unrealistic.

RiotAtTheRodeo if you haven’t used your ISA allowance then I would start there. This is a tax free savings account. You can put up to £20k each year in a cash ISA (low risk) or an investment ISA (stocks and shares). I think you can get going with £100. Read up on it. Tax free is a gift, an incentive to save. Please seriously consider the investment ISA, yes more risk but also more return. Hope that helps.

@GreatPotato

Basically 10% of my income from the day I started work in a Saturday job (35 years ago, so it's taken a while) and then introduced extra savings standing orders each time I was promoted. When I got a pay rise I didn't think, new car or better clothes, I thought new saving scheme. Which obviously won't be for everyone, but I never wanted those things.

Bully for you OP. But that all sounds a bit boring.