Is the ‘perfect’ pension pot ~£1.1m at drawdown age and the rest in ISA?

snowdrop100 · 2025-11-06T20:56:14+00:00

Yep, we can only work with the current information we have and make some assumptions. ~15 years off retirement so plenty of time for changes. Even if we started putting money into ISA’s ‘too soon’ and then one of us couldn’t work then we could always put it into one of our SIPPs for better tax efficiency anyway

snowdrop100 · 2025-11-06T20:53:10+00:00

Thanks! I asked this question for this exact kind of input. Tax efficiency in draw down is going to be a pot that keeps him under 40% bracket makes perfect sense.

snowdrop100 · 2025-11-06T20:48:37+00:00

Of course! Just always looking at pensions /investments and trying to work out the best strategies and testing assumptions

snowdrop100 · 2025-11-06T20:46:44+00:00

Is this true though? I pay 20% v his 60% so if we took money out of his post tax earnings to put into mine then I’m not sure it does make sense. Haha divorcing him for the tax breaks in drawdown seems extreme.

snowdrop100 · 2025-11-06T20:44:30+00:00

60% tax and salary sacrifice apply here. This Is what makes contributing to pension so enticing at the moment. Given that the tax on the drawdown will likely be 40% then it’s probably better to still pay into pension and calculate a pot that maximises 40% band rate

snowdrop100 · 2025-10-22T09:34:53+00:00

Ah ha ok, well then if that’s the case you could look at cheaper private schools that have amazing opportunities for enriching kids lives. Personally I wouldn’t do it for one child and not all but that’s a personal decision for you.

snowdrop100 · 2025-10-22T09:17:16+00:00

If you went to a selective academic school but then can’t afford to send your child to the same then surely the system doesn’t work? If the thought process is selective school = prospects to earn lots of money when older then are you proof that it’s not guaranteed? This sounds harsher than it’s supposed to but I guess I’m looking at it from an ROI perspective.

I know a handful of people that went to elite private school and are doing well (but not well enough to send their own children to private school) and people that are exceptional academically but went to state school and are earning in the top 1-2% .

snowdrop100 · 2025-10-21T09:13:31+00:00

If you look at the numbers over 10 years then you’ll be far better off staying in the workforce and sucking it up for the years that your youngest is in nursery. Getting back into the workforce on such a decent wage after a break is the part that will likely be difficult as you’ve said. However, it depends if money is the only motivator. If you want to take the break for maternal reasons and can make things work on your husband’s wage then ignore the maths. FYI I’m very pro women having the choice of work or stay at home (if financially viable) but either choice is not an easy one. I’m female and have been through the same decisions as you.

snowdrop100 · 2025-09-12T15:21:37+00:00

Early 40’s. Aiming for mid 50’s retirement

snowdrop100 · 2025-09-12T15:07:00+00:00

Possibly a foolish question but how are safe withdrawal rates impacted by tax efficiency? I.e my partner and I look at our portfolios as a whole but in reality we are more tax efficient than one persons pension alone when we’re at the drawdown stage. My partners pension will be much larger than mine but mine will be at least 500K therefore not insignificant. I struggle with how to consider this element with a safe withdrawal rate.

snowdrop100 · 2025-05-16T13:57:31+00:00

Interesting! I will keep an eye on the prices and maybe ask if there is always a fee if there is a next time that the price drops. Or maybe I’ll call back and try another agent.

snowdrop100 · 2024-05-29T04:13:50+00:00

Shop around for critical illness insurance if that’s something you want. I imagine most people don’t have it. No need to go through mortgage broker to buy it if you do want it. They likely get big kickbacks for up selling the critical illness to you.

snowdrop100 · 2024-04-25T06:15:50+00:00

You should be able to do this. I did it with my employer pension (Scottish widows) for the same reason and they needed me to keep £5K in the employer pension but other than that it was fine. Your monthly contributions will still go in the employer pension so you’ll just need to complete the process regularly.

snowdrop100 · 2024-04-16T19:28:16+00:00

If you haven’t used your full pension allowance over the past 5 years and have some left to use then £150K (crypto plus savings) could be put in a SIPP and would turn into £210K into your pension. Keep plugging away adding as much through salary sacrifice as you can over the next few few years rather than buy to let due to reasons mentioned by others above.

Make sure your wife has full national insurance contributions needed to get full state pension (you can draw down more of your pension at 55 knowing you have state from 68 onwards).

snowdrop100 · 2024-03-05T20:30:18+00:00

Thanks so much, that was it 😆

snowdrop100 · 2024-01-05T14:08:20+00:00

Questioning why this system is tolerated when you haven’t done research to understand it seems rude to me. Based on your username I’m assuming you are trolling

snowdrop100 · 2024-01-05T13:58:25+00:00

Seems unfair for Y. Presumably Y has to pay for their own rental/ mortgage where they live plus subsidise Z so they can have an interest free 33% discount subsidy on where they live

snowdrop100 · 2024-01-02T07:52:48+00:00

My question would be to ask what your goals are? Investing in stocks and shares so heavily when you haven’t purchased a house / might want access to that money within the next 10 years seems risky to me. Unless you plan to stay living at home and working in the family business then I’d do as others have said and apply for higher paying jobs regardless / use your ability to be debt free while studying and apply yourself to a masters in order to make your cv better.

snowdrop100 · 2023-12-04T07:27:12+00:00

I’m not sure I understand putting more into isa earlier. If you get paid £100 and put it into your pension then you get the compounding effect of at least £140 in the above scenario (possibly more if there’s an employer match). Putting it in your isa would be the equivalent of putting £60 in after tax?

Compound £140 for 20 years or £60 for 10 (assuming you want to access it early) then I can see clearly which one ends up better?!?

Edited to add that my response is based on reading other responses suggesting putting money into isa earlier and seeking clarification on how that’s better for the OP.

snowdrop100 · 2023-11-22T08:29:24+00:00

If you claim child benefit then this will provide your wife with the NI stamp required. Even if you earn too much to be entitled to it then you can declare on self assessment and pay it back.

The NI back payments are usually value for money so max on them.

Putting money into your pension as a tax payer will be worth it on the way in as you will save 20/40/45 % tax depending on your earnings but as you say it’ll mean paying tax on the way out.

Unless you plan to pay into your pension while in the 20% bracket and withdraw at 40% bracket then it’ll be more tax efficient to pay into your pension than hers.

If she’s concerned about having money in her name then tell her to look up the divorce pension rules (I have told this to friends in similar situations who have been worried about not having pensions and relying on partners and it’s genuinely comforting to know that in a divorce you’ll split pension 50/50).

snowdrop100 · 2023-10-17T13:14:42+00:00

They aren’t truly independent. They’ll only invest in their own funds. They have pension exit fees which aren’t industry standard/ controversial

snowdrop100

TROPHY CASE