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What should I do now?

Discussion in 'Retirement' started by angiebabe, Sep 5, 2011.

  1. angiebabe

    angiebabe New commenter

    Now that I have retired what do I actually do now? Have not sorted out my lump sum yet - has anyone else used Weslyan for this?
    Also, do I sign-on?
    I am not actually 60 until January - are there any 'retirement benefits' I can claim?
    Any good suggestions for sorting out my budget as I have to admit to being very lazy/poor at sorting out my finances.
  2. First of all go through your bank statements and find out what you are spending now that is essential. Then bearing in mind you are no longer working how will these costs reduce? Work clothes, travelling expenses, books etc The you can think about whether you will change the way you shop, cook, eat etc. Will this change your costs? Then you will know how much you need to live on. Compare this with your pension income, how well does it match? Will you need to draw down from your lump sum or can that be dealt with separately? Will you need additional work?
    Once you have sorted your living costs then you deal with your lump sum.A lot will depend on how big it is and whether you have any debts to deal with. First pay off any debts. Then make sure you have used your ISA allowance as that is tax free. Make sure you put some money into an easy access account so you can go on holiday at the drop of a hat etc! Then, depending on how much you have left assess your attitude to risk. Are you prepared to invest in stocks and shares where you may lose money or make gains or not? You may wish to consult an independent advisor at this point. Or go to money.co.uk or Martin Lewis the money saving expert to look at all the options available. remember you have all the time in the world to research this but if your money is earning you nothing at all while you do so this is not a good financial idea, you need to make SOME decisions fairly soon. Don't forget Premium Bonds as an option too, you may win and your money's safe.
    Good luck.
  3. angiebabe

    angiebabe New commenter

    Thanks roseangel - lots of things for me to think about.
  4. I have never understood why people are prepared to hand over loads of money, and pay very large fees, to strangers because no idea what to do with it. Paying money to these firms to invest in shares is like paying someone to gamble for you.
    You are only going to get one lump sum so why risk it by buying shares or playing the markets. Just go for safe options like the NSI tax free index linked bonds, 100% secure and you can get the money back anytime.
  5. angiebabe

    angiebabe New commenter

    I understand what you are saying but I dont even know what 'NSI tax free index linked bonds' are or how to find out about them. Can I just google for more information?

  6. Its the National Savings & Investment which is backed by HM Treasury hence 100% safe. You can only put in £15K at the moment as they are very popular. They are lindex linked to the RPI so your money keeps pace with inflation, plus a small %, if left in for at least one year. You can apply on-line or by post
  7. Agree with all that has been said- would never pay anyone to invest for me- got bitten a few years ago. I already have the recent NS and I bond and have maxed out my ISA so Premium Bonds for me plus some accesible cash in an Instant Acess account (all pathetic rates of interest though about 2.5%)
  8. Dragonlady30

    Dragonlady30 Star commenter

    My thanks too, rosangel. I had thought about most of those things but seeing them in a comprehensive list is great.
    Hubby did suggest we throw the lot at the lottery, but I think he was joking! [​IMG]
  9. About 20 years ago I made the mistake of investing in a FSAVC from Equitable Life because it was advertised by John Peel and Sue McGregor. Big mistake.
    I vowed never to be taken in again and read the Business section of the weekend papers. I quickly realised I knew at least as much as any Financial Advisor I had ever met.
    Your pension is probably your second biggest money item you have. Don't let snake oil salesmen remove it from you.
  10. lindenlea

    lindenlea Star commenter

    I agree. It doesn't take long to pick up the basics,
  11. I have never paid into medicash, if you haven't used it I would lose it.
    I have kept my union subs going as I'm still doing supply. If you know you'll never go back I'd ditch those too. Don't pay out for things you won't need.
  12. If you are on Supply the union is a must. However, you may not have to pay the full rate as you are only working part of the year.
    I've no intention of returning to school so I cancelled my union membership.
  13. Does anyone know if you de-register from the GTC (can't wait to do so!), can you re-register if overtaken by the overwhelming (and unlikely) desire to teach again? Thanks.
  14. I don't know but I can't see any reason why not.
  15. Get some decent advice about YOUR situation. (Weslyan was good for me and didn't cost a penny)
    I thought I would use my lump sum to pay off the mortgage. However, the advisor said "mortgage is .25% above base rate (so currently 0.75%); short-term bonds are offering approx 3%". So I get more money from my bonds than I pay for my mortgage. YOUR situation may be different.
    I think your GTC runs until April and you won't get a refund - do nothing.
    Union subs can be at a low rate; an ex-colleague was accused of impropriety from 10y ago, having retired 5y ago, and ended up at County Court - all legal problems sorted by the Union, which he had maintained. It is tax-deductable.
  16. All good points.

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