Where can I go to get decent/basic financial advice?

[Whatliesbeneath707]

I'm trying to get my life in order & sort out all those things that you need as an adult. I'm realising I should have done this years ago, but I haven't. I'm now 50 & would like to retire at 55, but think it will be more like age 60.

I'm in talks with my pension providers about what plans I have and it's complicated as I have an NHS pension (in 2 different schemes), and another occupational pension. Of course, the retirement age for each of these is different 🙄

Taking advice from another thread, I'm looking at funeral plans & want to start paying for that whilst I'm still earning.

We have recently drawn up wills as my partner & I aren't married & we have a daughter.
Our mortgage is due to be paid off when we are 62, so we have started a small overpayment to bring this down. We need to increase this really, but the increasing cost of living has scuppered this.

We do have critical illness cover (I think that's what it is), that costs £45 per month, but I think we took it out when we bought our first house about 25 years ago & I'm not sure it would cover our current mortgage.
Ideally, should we have any other types of insurances/cover?

I feel quite confused about all things financial & I'm sure the menopause brain fog has made this much worse!

Can anyone direct me to somewhere where I can go through these aspects & check we have what we need, or do you think I need a financial advisor? I'm always a bit wary of them due to cost, but also due to poor advice being given, that you sometimes hear.

Could anyone offer any advice or signposting, please?
Thank you.

Try the meaningful money podcast. For pensions, you get a free consultation from pensionwise- this is a govt scheme and it's unbiased advice. I also found the mse forum to be good - esp on pensions.

I have always viewed Financial advisors as a waste of money - ever since one (which a friend asked me to speak to) advised me not to join a new employers final salary scheme but to buy into his insurers pension instead. I was young and inexperienced, but it was totally the wrong advice.

Pensions - get the details of each scheme from the administrators and then either post on here or as pp said, the pension part of Money Saving Expert, with any queries you have. Assuming the NHS pensions are defined benefit, you will get benefits at a given age, all of which should be specified by the administrator.

Having them payout at different ages can be beneficial, you can select to take one but not the other, maybe go part time in current job. Is your 3rd pension a Defined Benefit, or a Defined Contribution (ie just building up a pot of money).

Check also on the HMRC website whether you have any missing years for state pension.

MSE has a variety of forums, with some expert contributors, which provide great advice. You might want to ask about pre paid funeral plans, but to be honest I would just put money into a savings pot towards it.

Another vote for the Meaningful Money podcast. It's by a financial advisor who spends a lot of time telling people that they don't need to consult a financial advisor.

The current season will be a good start as it's a systematic run through the financial flowchart:

https://ukpersonal.finance/flowchart/

https://meaningfulmoney.tv/category/podcast/season-25-finance-os/

There's also a good website, book, podcast back catalogue, you tube, everything really. All really accessible, clearly explained with emphasis on keeping things simple.

While you may think some of the earlier steps of the flow chart as irrelevant, they can be of some use as it goes through budgeting, planning for large purchases and if you're anything like me (I'm the same age as you and loosely thinking about when I can retire) one thing I'm unsure about is how much money I'll have at various stages and how much I'll need for day to day living and any larger expenses like car replacement, home maintenance etc.

I listen to the Ramsey show a lot. It's American and not for everyone but it works for us.

@Whatliesbeneath707 your NHS Pension situation may be slightly complicated by the McCloud remedy, this may go in your favour.

Personally I think you can do this yourself. Think of it like building blocks that over time you will increase your knowledge and understanding.

Things to do:

• Go to gov.uk and get an up to date state pension forecast, the on line is basic. You can complete form BR19 for a full forecast.
• This will tell you a) how many more years you need for a full pension b) any missing or part years. Part years can mean by paying a little you get another years NI.
• Your aim is a full pension for you and DH currently £10,500+ per year.
• I agree with pp get an up to date pension statement. Look at the normal pension ages and ask for quotes if you take them early.
• Research the McCloud judgement, it will be on the NHS pensions site. At some point you will need to understand the options so regularly check for updates.
• Work out your current monthly/annual expenditure - what will you still have to pay when retired? This gives you an idea of the minimum income you will need in retirement,
• Work out what income you will get from pensions - remember you pay tax but not NI or pension contributions.
• Either pay extra each month off your mortgage or put it in a savings account then at the end of the year make a lump sum payment. Your mortgage interest rate vs savings interest rate (less tax) will give you an idea which is best.
• Look at maximising savings e.g. ISA etc.
• Be aware the actuarial reduction for taking pensions early look brutal but remember this is because you have longer retired so in cash terms you have less each month but paid out for more years.
• Look at options for phasing into retirement e.g. 4 days a week for 1, 2 or 3 years then draw 1 pension and go 3 days etc. for 1, 2 or 3 years.

Come back to this thread as you do this for next steps etc.

HTH

Wow! Thanks everyone. That podcast looks really good and each episode isn't too long, so I can work through each step.
@Sisterpita thanks so much for that checklist. That's really helpful. This is what I needed, so I can work through each step.

Thanks so much 😊

Sisterpita has a great list. I would add a Facebook Group: NHS & Public Sector Pensions Support which is run by Laura Bowler of Pen-gage. She gives a lot of free guidance about the NHS pension scheme and other public sector schemes. Pen-gage works with employers, delivering seminars. They can do individual advice but having been in the Facebook group a while, I am certainly not seeing any hard sell of that, so I feel she is using the group (and others she posts in) to get clear information out to people, in particular about pension changes due to McCloud judgement.

@BarbaraofSeville Meaningful Money Podcast, Season 16 may be of use to you. https://meaningfulmoney.tv/season-16-the-home-straight/

I'm unsure about is how much money I'll have at various stages and how much I'll need for day to day living and any larger expenses like car replacement, home maintenance etc.

With cashflow modelling (such as using Voyant Go available via Meaningful Academy Retirement Planning) you can get a feel for what income is coming in each year, what is likely to be spent, but it is based on the data you enter.

https://www.retirementlivingstandards.org.uk/ This is quite good for getting a feel for how much you may need to spend in retirement.

The large expenses are the issue I feel. My mum (in her mid 70's) has moved home 2 years ago and has now brought a new car. How can you factor in costs like that. It's tricky but I suppose you can make a guess, such as saying you would replace a car every 9-10 years.

I also recommend the podcast and website Money To The Masses, and a great tool on the site Damien's Money MOT https://mot.moneytothemasses.com/