I wonder if anyone can advise re. my below plans please.
I have asked 2 local IFAs and they have both said they could not advise on my plans and could neither recommend anyone who could maybe advise me, hence this post, asking for help please.
Thanks a lot.
I’m 50 looking at retiring abroad in 7-8 years time at the most.
At the moment I pay about 30% of my salary into my company pension ran by legal and general and Tesco pay in an additional 15% (max they pay.)
I have a foreign mortgage, on a home I own, around £165k left on that at around 3.4% interest.
Being a Spanish mortgage it is fixed at that % to closure.
Property is probably worth around £255k or so over on the island, though brexit is not helping the value!!
I have a mortgage over here, balance of around £210k with house value of around £350k.
I change my mortgage every 2-3 years to get the then best % deal.
Thought Is when I downsize in say 2 years time, I will probably move into rental and pay off the foreign mortgage with the equity or put the equity lump sum away for say 2 years to grow, before paying it off, if the gain is going to be better than the interest rate paid on the Spanish mortgage already mentioned.
In 3 months time I have around £40-£45k of share options maturing.
I earn £70k a year or so and so slightly into 40% income tax rate.
Once I have the share money, is it worth locking half of it away for say 3 years, in a product, keep the the 2nd half to live on, then increase my pension contributions, to say 50% of my wage, as I believe this will bring me below the higher tax threshold, I can make up any monthly shortfalls needed from the share money I’ve kept, then when I retire I can take 20% of my pension pot as cash I believe, tax free, so basically I’m saving tax 40% tax contribution on the money I pay into my pension now and then can take 20% of it as a lump sum to live on and buy some toys with in 7/8 years time!!
My current pension scheme is in two parts, both I can access/take when I’m 55 but obviously cuts the value i would get, if I took it later.
Like a lot of firms, my employer closed down the good pension scheme 4 years ago and I have roughly £15k or so a year due from that, if I took it when I was 60.
The new/current part, which is what I’m paying into now, is what I’ve got planned to take the cash sum from when I retire in 7/8 years time.
It should be a sizeable amount by then, if I continue to make the payments i currently plan to.
That in summary is the basic plan, if it makes sense?!?
The thought is then I can live off this cash pot/2nd pension for a number of years, when I retire and take the 1st closed pension, £15k a year or so, when I’m say 62 or 63, where it might then be worth £16k a year, as I’ve taken it a few years later.
Thanks a lot.