I was emailed today by Gatehouse Bank advising that my Easy Access savings account interest was rising from 4.6% to 4.75%. A surprise when others are lowering their rates…..
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
Is this as in having more than £85k with one institution?
I personally would choose to have my cash across multiple institutions if it was standard savings with the same percentage rate.
I probably wouldn't forego a better interest rate no matter how marginal though.
In my mind, the government securing the £85k per institution is the kind of guarantee that prevents the issue every arising, if that makes sense. Eg if all Northern rock savers were protected by the government up to £85k, would we have seen a run on the bank? I doubt it.
Several people on here are more qualified than me to comment on that though!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
Is this as in having more than £85k with one institution?
I personally would choose to have my cash across multiple institutions if it was standard savings with the same percentage rate.
I probably wouldn't forego a better interest rate no matter how marginal though.
In my mind, the government securing the £85k per institution is the kind of guarantee that prevents the issue every arising, if that makes sense. Eg if all Northern rock savers were protected by the government up to £85k, would we have seen a run on the bank? I doubt it.
Several people on here are more qualified than me to comment on that though!
Yes I’m usually careful to spread it around different banks etc and avoid when one bank owns another one. I’m not entirely sure how I did this. It think I got muddled between the Post Office and NSI
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
I’m 60 and kind of retired. I took one of my pensions early. I have a hen sanctuary where we take in unwanted/poorly/disabled chooks and let them live out their days here. So… no time for holidays or going out!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
Amongst the pages and pages of excellent advice this thread contains, what you have said above is one of the best pieces of advice on here.
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
I’m 60 and kind of retired. I took one of my pensions early. I have a hen sanctuary where we take in unwanted/poorly/disabled chooks and let them live out their days here. So… no time for holidays or going out!
If that's what makes you happy buy a new hen house! Or maybe get someone in for a few days to look after them and go and see the sea, stay at a spa hotel, pamper yourself, more take aways - whatever!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
Amongst the pages and pages of excellent advice this thread contains, what you have said above is one of the best pieces of advice on here.
It can be a difficult balance and one I've seen many people struggle with. Keeping enough for the 'rainy day' yet also spending - can be a difficult balance to find! I'm 52 and will likely retire within 5 years, I already have a clear plan as to what I'll draw down as income and what of my other savings/investments I will spend. I'm front loading a little so I might get panicked after a couple of years of blowing lots!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
I’m 60 and kind of retired. I took one of my pensions early. I have a hen sanctuary where we take in unwanted/poorly/disabled chooks and let them live out their days here. So… no time for holidays or going out!
If that's what makes you happy buy a new hen house! Or maybe get someone in for a few days to look after them and go and see the sea, stay at a spa hotel, pamper yourself, more take aways - whatever!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
Amongst the pages and pages of excellent advice this thread contains, what you have said above is one of the best pieces of advice on here.
It can be a difficult balance and one I've seen many people struggle with. Keeping enough for the 'rainy day' yet also spending - can be a difficult balance to find! I'm 52 and will likely retire within 5 years, I already have a clear plan as to what I'll draw down as income and what of my other savings/investments I will spend. I'm front loading a little so I might get panicked after a couple of years of blowing lots!
I retired 3 years ago at 58, my wife a few years earlier. My wife and I between us have what most would consider a healthy sum in our SIPP’s. BUT it’s a fine balancing act between what to spend now whilst ensuring you have sufficient funds to live on if we reach the ripe old age of 90. Spend too much now and you could find yourself bang in trouble. Don’t spend enough and you could end up leaving a substantial sum behind. I mean bugger that, we earned it so we want to enjoy it ourselves. Basically, caught between a rock and a hard place so to speak, although I’m grateful we are in that position and it’s not a bad problem to have.
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
I’m 60 and kind of retired. I took one of my pensions early. I have a hen sanctuary where we take in unwanted/poorly/disabled chooks and let them live out their days here. So… no time for holidays or going out!
If that's what makes you happy buy a new hen house! Or maybe get someone in for a few days to look after them and go and see the sea, stay at a spa hotel, pamper yourself, more take aways - whatever!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
Amongst the pages and pages of excellent advice this thread contains, what you have said above is one of the best pieces of advice on here.
It can be a difficult balance and one I've seen many people struggle with. Keeping enough for the 'rainy day' yet also spending - can be a difficult balance to find! I'm 52 and will likely retire within 5 years, I already have a clear plan as to what I'll draw down as income and what of my other savings/investments I will spend. I'm front loading a little so I might get panicked after a couple of years of blowing lots!
I retired 3 years ago at 58, my wife a few years earlier. My wife and I between us have what most would consider a healthy sum in our SIPP’s. BUT it’s a fine balancing act between what to spend now whilst ensuring you have sufficient funds to live on if we reach the ripe old age of 90. Spend too much now and you could find yourself bang in trouble. Don’t spend enough and you could end up leaving a substantial sum behind. I mean bugger that, we earned it so we want to enjoy it ourselves. Basically, caught between a rock and a hard place so to speak, although I’m grateful we are in that position and it’s not a bad problem to have.
Totally get this. It doesn’t come easy to spend money when me and Mr Tatters have been brought up to be frugal. We don’t have any kids to leave the money to and would rather the government didn’t get it all but want to have enough money incase the roof falls in.
I have nothing but envy for anyone in the positions stated above. We work hard in this country and so, so many people do not get a retirement so enjoy it and be proud of the position you have got yourself into
I've learned so much from this thread but mostly from doing some reading and listening off my own bat. The conclusion I have come to is front load your pension, take the largest lump sum you can and fill your days. Do your shopping when all us mugs are working, head down to the beach on a weekday for a mince about and fish and chips, get the car you wanted or look after chickens.
I'm still of the mind the government don’t support people from the aspirational working class retiring, we don't do it right but I'll be fucked if I'm working any longer than I have to, my jobs got more physical in the last few years again and looking at the older blokes still at it worries me. Backs, elbows, knees need to work in retirement for me not an employer.
I intend to consolidate the money pot ive built up with H&L, my own punts on the stock market and my e savings into ISAs over a few years as that seems the best way to negate CGT.
I have nothing but envy for anyone in the positions stated above. We work hard in this country and so, so many people do not get a retirement so enjoy it and be proud of the position you have got yourself into
Couldn't agree more, neither my parents nor grandparents had much of a retirement, I'm determined to break the cycle! Although I'm safe in the knowledge history should mean my wife will very much enjoy it as on her father's side they all live to 100!
I have nothing but envy for anyone in the positions stated above. We work hard in this country and so, so many people do not get a retirement so enjoy it and be proud of the position you have got yourself into
Couldn't agree more, neither my parents nor grandparents had much of a retirement, I'm determined to break the cycle! Although I'm safe in the knowledge history should mean my wife will very much enjoy it as on her father's side they all live to 100!
I’m only in this fortunate position because of property. My Dad bought a house in Bexley 60 years ago for £4500. When my Mum was alive it was kept decorated etc but Dad didn’t do any afterwards. Nearly 10 years ago before he died he was so worried that I’d have trouble selling his house as it needed work. He’d have been staggered at what it went for.
My house moves have varied. I bought a flat in Sidcup in 1985 ish for £35000 moved on but later down the line got stuck in the negative equity era. Picked up again later after getting a ‘self certification’ type mortgage as I was self employed. Just got lucky with the timing and, again, help from my Dad.
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
I’m 60 and kind of retired. I took one of my pensions early. I have a hen sanctuary where we take in unwanted/poorly/disabled chooks and let them live out their days here. So… no time for holidays or going out!
If that's what makes you happy buy a new hen house! Or maybe get someone in for a few days to look after them and go and see the sea, stay at a spa hotel, pamper yourself, more take aways - whatever!
In the process of attempting to sort out my finances…and I’ve found that I have opened a savings account with the post office for two years and I already have one that matures next July but had forgotten about. This takes me over the £85000 by about 30k Should I worry?!
I wouldn't and say this to all my clients. As long as you are in a UK based institution then the £85k FSCS limit is pretty much useless. UK Governments don't let UK banks fail. Look at Northern Rock & RBS. In RBS case the UK Government bought a share in it which the whkle country have now had to suffer for.
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Thank you! I like very low risk stuff so stick to cash mainly. I try to look for good interest rates and lock some of it up for a couple of years. I have got a couple of S and S ISAs and some JP Morgan thing that used to be my Dad’s which seems to grow. I just live of the interest tbh
Get as much in ISA's as you can, with those sort of sums you'll be paying tax on the interest unnecessarily.
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
Amongst the pages and pages of excellent advice this thread contains, what you have said above is one of the best pieces of advice on here.
It can be a difficult balance and one I've seen many people struggle with. Keeping enough for the 'rainy day' yet also spending - can be a difficult balance to find! I'm 52 and will likely retire within 5 years, I already have a clear plan as to what I'll draw down as income and what of my other savings/investments I will spend. I'm front loading a little so I might get panicked after a couple of years of blowing lots!
I retired 3 years ago at 58, my wife a few years earlier. My wife and I between us have what most would consider a healthy sum in our SIPP’s. BUT it’s a fine balancing act between what to spend now whilst ensuring you have sufficient funds to live on if we reach the ripe old age of 90. Spend too much now and you could find yourself bang in trouble. Don’t spend enough and you could end up leaving a substantial sum behind. I mean bugger that, we earned it so we want to enjoy it ourselves. Basically, caught between a rock and a hard place so to speak, although I’m grateful we are in that position and it’s not a bad problem to have.
I'm a little bit older at 67 and only retired at the end of last year, but we are in a similar position with a healthy pot to enjoy. I know people who retired at say 60 with a pot of X and they have budgeted to assume living another 30 years - their drawdown calculation is x/30 each year. WTF!
My wife and I have perhaps 10, maybe less, golden years where we will have the mobility and energy to 'do stuff' - long haul holidays, explore, eat at the best restaurants, buy nice clothes, take the grandchildren on nice holidays and so on. So we intend to spend 40% of our pot in the next five years, 30% in the 5 years after that and the remaining 30% providing enough of an income for perhaps another 10 years. That would make us late 80s and although doubtful we'll still be here I really couldn't give at toss at that age! Our youngest said he would look after us, but my eldest said (jokingly) sod that, you're going in a home!
Live your best life while you can - you've worked all your life so you've earned that at least.
At 37, I’ve decided to try and go all in with my pension as much as possible. I’d love to retire at 55, and if I go as hard as I can then it *might* be possible.
I’ve managed to build a decent enough buffer of savings after buying my house that a lot of it really is just sat there in a bank when it could be put to better use.
Those 18 years will fly past though, and it’s one of those things that I wish I’d paid more attention to even just 5 years ago to have a better head start.
At 37, I’ve decided to try and go all in with my pension as much as possible. I’d love to retire at 55, and if I go as hard as I can then it *might* be possible.
I’ve managed to build a decent enough buffer of savings after buying my house that a lot of it really is just sat there in a bank when it could be put to better use.
Those 18 years will fly past though, and it’s one of those things that I wish I’d paid more attention to even just 5 years ago to have a better head start.
There is another balancing act there - don't forget that you need to enjoy those intervening 18 years as well!
@Rob7Lee Met my pension advisor the other week and they now include a “sustainability report”, apparently a new requirement, which shows you what to expect your pension to should growth be 4.5% and you continue to take out the current income level. It also shows what happens if you were to have three years of 2.5% decline. Your link is just as good and wouldn’t cost an extra fee!! 🤷🏻♂️😉
Totally agree with @Carter and yourself and @bobmunro that you should, if at all possible, enjoy your retirement as much as possible when you can. Do the things that make you happy and help out the family along the way.
At 37, I’ve decided to try and go all in with my pension as much as possible. I’d love to retire at 55, and if I go as hard as I can then it *might* be possible.
I’ve managed to build a decent enough buffer of savings after buying my house that a lot of it really is just sat there in a bank when it could be put to better use.
Those 18 years will fly past though, and it’s one of those things that I wish I’d paid more attention to even just 5 years ago to have a better head start.
Sorry to be the bearer of bad news but you wont be able to access your pension to at least age 57. Maybe 60 if Governments change the rules again.
Make sure you have money in an ISA (stocks & shares preferably) as you can access that at any time & could bridge any gap until you can access your pension.
So what's the general consensus on equity release? We have no children to pass anything on to but I am slightly uncomfortable in no longer owning 100% of our home. We could sell one of our rentals but obviously lose the income. Are there any downsides to equity release that anybody can shine a light on?
So what's the general consensus on equity release? We have no children to pass anything on to but I am slightly uncomfortable in no longer owning 100% of our home. We could sell one of our rentals but obviously lose the income. Are there any downsides to equity release that anybody can shine a light on?
If you do it then have it as a draw down rather than a lump sum - that way the interest is only applied to the funds you've taken out. I don't know your circumstances of course but trading down might be another option if you don't need the size of house you have, and also bare in mind lifestyle needs as you get older - single level living may be more suitable if there are mobility issues (affects pretty much everyone at some point) in the future. If trading down is right for you longer term then don't put it off. Selling one of your other properties would be my preference.
The other issue for me is giving the benefit of your hard earned mortgage free property to a no name/face third party, even if you have no family to leave the house to.
Thanks Bob, was sort of down that way of thinking. Appreciate your thoughts.
We’re also in the same position with no kids to leave it to. I’d prefer to leave it to some charities rather than it being used to pay for me to be stuck in a nursing home but I guess that’s the luck of the draw.
So what's the general consensus on equity release? We have no children to pass anything on to but I am slightly uncomfortable in no longer owning 100% of our home. We could sell one of our rentals but obviously lose the income. Are there any downsides to equity release that anybody can shine a light on?
Equity Release is good in your circumstances as you have no beneficiaries to leave your Estate to so rolling up interest wont hurt anyone.
However, as @bobmunro says, ER is a means of releasing a lump sum & so if you want to generate income you'll have to invest it......esp if you want tax-free income.
Which leads me to your rental properties. Obviously have no idea of your personal circumstances but I suspect you are a basic rate taxpayer.....if you are a higher rate taxpayer then this is even more important. You could sell your tax inefficient rental property & invest the money into a more tax efficient vehicle. You could even receive tax free income but that all depends on your current tax status.
Thanks Golfie, food for thought. Early 60's, spread out our income so we are both basic rate of tax. This will change for me when I get the old age pension in a few years, which will probably drive the need to sell something as after many years of paying out 40+ percent in tax I absolutely refuse to go there again.
Interesting chatter about spending your savings to prevent the government getting their hands on it. I’m certainly doing that by travelling with no expense spared after years of backpacking and staying in hovels. But the balance between ensuring you have sufficient savings to take up to your nineties is to me a bit daft. I don’t think I’ll be travelling around the world and living it up should I live to that age. I would imagine around the 80s I might take it easy which will mean I won’t be able to spend my income and then my capital will start to increase.
Comments
I personally would choose to have my cash across multiple institutions if it was standard savings with the same percentage rate.
I probably wouldn't forego a better interest rate no matter how marginal though.
In my mind, the government securing the £85k per institution is the kind of guarantee that prevents the issue every arising, if that makes sense. Eg if all Northern rock savers were protected by the government up to £85k, would we have seen a run on the bank? I doubt it.
Several people on here are more qualified than me to comment on that though!
But if it makes you sleep safer at night then spread it around 2 institutions. Just make sure they dont share the same banking licence.
Post Office is actually Bank of Ireland (UK) I believe, so whilst technically UK, it's owned by an Irish Entity so not sure the same rules as the others apply.
@Arsenetatters - on the basis you have so much cash you can't remember where you've put it I wouldn't worry
I never worry too much at being a bit over, I'm more worried as to why you are holding so much in cash!
Not sure of your personal circumstances or age (but from previous posts I think you are retired). The old adage of you can't take it with you - spend some of the capital if you can on whatever it is that floats your boat. More holidays/more expensive holidays, going out more, theatre etc - whatever it may be, you and your loved one's enjoy it rather than the bank enjoying it!
It can be a difficult balance and one I've seen many people struggle with. Keeping enough for the 'rainy day' yet also spending - can be a difficult balance to find! I'm 52 and will likely retire within 5 years, I already have a clear plan as to what I'll draw down as income and what of my other savings/investments I will spend. I'm front loading a little so I might get panicked after a couple of years of blowing lots!
I've learned so much from this thread but mostly from doing some reading and listening off my own bat. The conclusion I have come to is front load your pension, take the largest lump sum you can and fill your days. Do your shopping when all us mugs are working, head down to the beach on a weekday for a mince about and fish and chips, get the car you wanted or look after chickens.
I'm still of the mind the government don’t support people from the aspirational working class retiring, we don't do it right but I'll be fucked if I'm working any longer than I have to, my jobs got more physical in the last few years again and looking at the older blokes still at it worries me. Backs, elbows, knees need to work in retirement for me not an employer.
I intend to consolidate the money pot ive built up with H&L, my own punts on the stock market and my e savings into ISAs over a few years as that seems the best way to negate CGT.
https://markinthemoney.com/drawdown-calculator/
I’ve managed to build a decent enough buffer of savings after buying my house that a lot of it really is just sat there in a bank when it could be put to better use.
There is another balancing act there - don't forget that you need to enjoy those intervening 18 years as well!
Totally agree with @Carter and yourself and @bobmunro that you should, if at all possible, enjoy your retirement as much as possible when you can. Do the things that make you happy and help out the family along the way.
Make sure you have money in an ISA (stocks & shares preferably) as you can access that at any time & could bridge any gap until you can access your pension.
However, as @bobmunro says, ER is a means of releasing a lump sum & so if you want to generate income you'll have to invest it......esp if you want tax-free income.
Which leads me to your rental properties. Obviously have no idea of your personal circumstances but I suspect you are a basic rate taxpayer.....if you are a higher rate taxpayer then this is even more important. You could sell your tax inefficient rental property & invest the money into a more tax efficient vehicle. You could even receive tax free income but that all depends on your current tax status.