#6862
Postby grimer » November 19th, 2016, 9:34 pm
Hi,
This thread has been very enlightening and I'm aiming for a FIRE age of 55. I'm a bit late to the investment scene and got serious last year. I'm currently putting my entire wage, that attracts the 40% IT rate, into my company pension and SIPP. I'm also investing into an ISA. My wife is a teacher, so potentially we will have her pension kicking in at some point, but she is four years younger than me, so if we're both going to retire it will be my 'pot' that needs to provide for both of us.
I think we'll need at least £48k per year to fully enjoy retirement, but could live on far less (maybe £24k for bare essentials). We're currently child free (but trying), and mortgage free (2 bed Zone 2 flat in London).
For those people that are hitting the lifetime allowance, are you happily married? If so, perhaps it might pay to divorce, split the pension pot and then remarry? That would also double the amount you can withdraw before you hit the 40% tax band - £133,333 with a 'take home' of £117k (based upon new £50k 40% threshold, £11k personal allowance and 25% tax free lump sum). £40k of that could be transferred into your ISAs for future tax free income.