[Ian Gourlay]

Have you paid a Tax Consultant

Could be a good idea


I would suggest form a limited company  pay yourself a limited amount and accumulate the surplus in a Company Cash Pile

Then when you are ready to hang up your boots liquidate the company.

And pay yourself a fantastic termination package

[jasonl]

Sounds tough Dave ,  how about selling your business as a going concern , if you earn ove 24k it will be worth a tidy sum , at least 3 years earnings. 

[Joe H]

Dave
I have not looked into this option myself yet, but there is provision to delay your state pension, but you get an increase when you do draw - have you looked into that.  You could possibly do the same with your private pension.

[Dave_Lee]

Jason,
I have always thought the valuation for our kind of business less equipment and van, was equal to 6 months profit, not 3 years as you say?
Joe,
I have been drawing my private for some months now and is that small it barely counts. As for deferring State Pension.
If you deffer claiming for say 3 years, then take take an enhanced pension. It will take almost another ten years of drawing that higher pension to make up for the 3 years that you were not receiving any.
Another way of deferring taking it, is rather than having an eventual enhanced pension you can take the extra as a lump sum. Of course they are not daft and make it more attractive you longer you defer it. If I deferred by this method for just one year the lump sum at at the end of that year would be £186 more than I would have drawn if I had not differed it.
If I differed it for 5 years, the lump sum would be £5,006 more than I would have drawn if I had not differed it.
Going of that it is better to take a lump sum rather than an enhanced pension.
Of course at the end of the day you are still taxed on it all, and if you die within the differed period, you lose out on all of it.
Dave.
Dave.

[jasonl]

I sold my Chem dry in 2001  for 59k , it had a turnover of 125k and a net profit of 29k the previous year, the asset value was very low , less than 10k worth of kit .

Scary reading that is ,,formal pensions look like a bad deal , I did not know the bit about dying meaning that you lose whatever is left in your fund.

[Carpet Dawg]

If you cant get a big lump some for selling the business, why not train up a couple of wipa-snappers (probably spelt wrong) and let them do the graft while you market the business further (increasing turnover) anwser the phone, fill the diary, general customer service roll and make sure everything runs smoothly. Maybe help the guys out if they have a tough stain or something.

Would that not be an option?

Tony

[Dave_Lee]

If you cant get a big lump some for selling the business, why not train up a couple of wipa-snappers (probably spelt wrong) and let them do the graft while you market the business further (increasing turnover) anwser the phone, fill the diary, general customer service roll and make sure everything runs smoothly. Maybe help the guys out if they have a tough stain or something.

Would that not be an option?

Tony

I started up 31 years ago with that idea, however I soon realised that to provide a top quality job in the domstic market, you had to do it yourself. I have seen several fail quickly once changing to what you suggest.
The graft aspect does not bother me in the slightest, I am known as unusual for age at our running club and although not as fit as I was in general as 3 years ago, I still shift a bit when working with no ill effects.
Last September, I set one of the fastest ever times for the Coast to Coast walk from St. Bees to Robin Hoods Bay, carrying all my own gear with a full camping pack and almost certainly (although hard to verify) a record for an over 60 year year old, and possibly over 50 year olds. All walking with no running, I averaged over 42 miles per day and finished in 4 days 15hrs 48min, for the 190 miles. The average crossing with camping gear is 15 days.
I reckon physically wise I could carry on at the same level for another 5 years if i wanted before maybe slowing down (all things being equal).
Dave.

[idealrob]

I am not trying to be a scrounger, but since you mortgage still has 6 years to go, it has been missold. See a financial advisor and am 100% sure you wont have to pay a penny more, now you are a pensioner. I know people who its happened to, the did not have to pay last 10 years.

idealrob

[jasonl]

There is a carpet cleaner on here  who sometimes posts , he told me 3 months ago that he has been diagnosed with cancer aged 49 . That was a wake up call to me . Life is too short to be working at full tilt, I have had problems with debtors the past couple of years that have left me short

Once I have paid a few people off I will be cutting back  and spending more time with family and friends and my hobbies. Life is just too short, surely there must be a way to wind down at 65. 

[Mike Halliday]

we work in an industry that can pay £400 for a days work, I ( foolishly) believe this will stop me ever being on poverty's door.  my wife has worked since leaving school as a nurse and has paid into a pension since day one, she will still not get a better pension than me working 2 days a month.

the biggest indicator we have to how long we live and how we will physically be is to look at our genetics, my father is 83 and is fit and mentally sound.  he still rides his bike every where.  my grandfather was the same, I believe if it was not for a bad fall he would have lived alot longer than the 88yrs he did.

I have no pension or any provisions for my old age, I will work until i die.

[jasonl]

Why Mick ?   My birth mother retired last October when she turned 60 , she died on Jan 2nd this year.

My step mother retired 5 years ago , aged 55 , sold her bungalow in Loughborough and has built a beautiful house on the Silver coast in Portugal , lives a  lavish life style  on a small pension , comes  to England every couple of months and is loving life .   


My wife is a nurse too , works really hard, for a pittance , and a 50% final salary  pension.

Leisure and family have to  take priority surely?

[Linds Russell]

My dad is self employed and has been paying into an index linked pension for 20 years. When he retires, he would have been paying around £360 a month into it and would then only receive £180 a month upon retirement. His new financial advisor advised him to stop paying into it, cash it in and get rid of his various debts that he had running (not much but they add up).

My point is that before my dad took on this new advisor, he would have had no clue about the very small return on his pension and would have been devastated to reach retirememnt with a crap pension. Food for thought. Mike is right - a couple of days cleaning carpets can make a huge difference.

[jasonl]

I get you now Mick , yes carrying on part time is a good idea , just not at full tilt.

[Mike Halliday]

jason....but that my point, family& leisure can take priority, I can work part time still earn a good living.

 if i am 70 and working max 2 days a week or perhaps working 4 days a week during the summer/xmas then the 4 winter months in Gambia, the money we make gives us lots of options

but in some ways i have no choice  

 

[Matt Lindus]

You’re not taking advantage of tax relief if you’re not putting money away into a pension. Whatever you put into your pension before your tax year ends, up to a certain figure, comes directly off your profit and your taxed on the remainder.

YOU GET 100% TAX RELIEF ON YOU PENSION CONTRIBUTIONS UPTO A CERTAIN AMOUNT.
IF YOUR NOT INVESTING HEAVILY IN YOUR BUSINESS, SHOVE AS MUCH AS YOU CAN INTO YOUR PENSION, FAIL THIS AND YOU MIGHT AS WELL GIFT WRAP YOUR MONEY TO 'SILVER SPOON BOY' CAMMERON.

Life is a very cruel journey of growth, progression and promise to decline, demise, deterioration and death. You need more security for your demise than you do in your progression .

Matt

[will_turton]

 well sad man

[Dave_Lee]

Full tilt? I don't feel like Ive worked at full tilt for some time, I could always be busier than I am.
My outside interests are Cycling, Fell and Long Distance Walking, Ultra distance Lightweight Backpacking, and I'm just getting back into road and Fell running. Just did 11 miles over country this morning.
If I want time off I take it, no hesitation, I'm taking a week and a bit off in a couple of weeks to attempt a fast Coast to Coast again, only this time East to West. I will do several similar things this year as well a few long weekends and a holiday with my wife. Hoping for a long haul month long trip early next year, so full tilt, definitely not.
I am sure many guys in their 30s and 40s have in their mind that by the time they are 65 they will creaking old men. I once couldn't imagine to be still doing carpet cleaning after the age of 45, however if you look after yourselves there is no reason why you can't go on for as long as you want to.
When I was serving my apprenticeship with ICI back in the 60s, the Fitters that managed to stay alive to reach retirement, were indeed crinkley, hunched up old men. Times have changed and there is no reason why this should be the case anymore, although I must admit I still come across guys in their 40s and 50s who are knackered, because they have become 'Comfortable' far too early in life.
Going out for a regular walk or jog, as being advised to do, following a heart attack, is leaving it a bit late imo.
Dave.

[Carpet Dawg]

Well good luck then Dave. Looks like your minds made up  

Cheers
Tony

[JandS]

Lump sums aren't taxable and you get your full
allowance, £6000 ish, on your monthly pension.
Downside is you pay 20% tax and 8% NI on
everything you earn so you got to be a bit canny.

John

[Dave_Lee]

Lump sums aren't taxable and you get your full
allowance, £6000 ish, on your monthly pension.
Downside is you pay 20% tax and 8% NI on
everything you earn so you got to be a bit canny.

John

John,
The lump sums I mentioned are State Pension lump sums from deferring your pension. I think you are getting confused with private pension lump sums, which as you say are not taxable on 25% of the fund.
See- http://www.hmrc.gov.uk/pensioners/pension-later.htm
Dave.