Anonymous

Thank you for the detailed response. What you say on the tax relief makes sense. I've ramped up my contributions while the going is good. My future planning expects the top end relief to go at any moment, so anything gained until then is a bonus. 25% tax free - okay, fair enough, you'll be ex-UK. I'm not a big spender but retirement will coincide with my boy coming to that age where BOMAD may avoid a lifetime debt-servicing for him, hence my curiosity. State pension agree, sadly national insurance contributions will be just that - insurance. On a similar line of thought who's to say the NHS won't by then be means tested - that in combination with unfortunate events or genes could well bring the state pension back into play. Reaching LTA isn't a target but it would coincide with retirement age at a theoretical 4%/yr growth and employer contributions remaining high. I say theoretical as reaching the LTA feels more in hope than expectation in the short term as I expect fund values will sometime soon crash in a market correction; but I haven't yet acquired the skills or courage to switch funds to attempt to ride the storm! Anyway, back to point, at 41 now and reaching LTA feeling distant, ISAs aren't in my thoughts. To look at things more optimistically I could be ready for FIRE on paper in my early 50s if the pension funds perform well - so taking your point bridging the gap with ISAs and the like might come into my thoughts nearer the time - a nice problem to have! Thanks again for your time, and the blog which I follow.

WICAO, A few questions if I may. No precise answers for these, but what's your hunch? Salary sacrifice - how long will the current structure of a 66% top up for 40% tax payers remain? I don't think long, couple of years maybe. Pension withdrawal - how long until the 25% tax free allowance is lowered, if at all. I think it will remain but subject to a max amount in the next 5-10 years. State pension - I too discount it from my thoughts - what % chance would you put on it becoming means tested in 30 years? I.e. those who have saved won't get it. My view is 85%. Pension/ISA - I'm not hitting the 40k pension contribution annual limit. I don't plan to access my funds until age 58 (I'm late to the FIRE party). I already have a rainy day fund. I see no value in putting money in an ISA while I'm not hitting the pension contribution limit - am I wrong to think this? Many thanks!

I've lived that scenario, though not on the scale of today's ludicrous prices. Now well out, thankfully. Default rate on service charges was common. Empty flats didn't contribute. Broken lifts not serviced in a timely manner due to reduced service budget. Security staff not there 24/7 due to reduced service budget. Squatters in unsold flats leaving beautiful new flats vandalised. High service charges for a development not well maintained = potential buyers put off. Service charges for those who actually did pay rocketed up to attempt to compensate for non payers. Developer not selling flats meant costly snagging issues were not dealt with or delayed. All taking place while the market continued to drop. Negative equity on most flats, owners left bitter, stressed and trapped. The situation descended quickly back in 2009/10, eating itself up. I can see this scenario playing out again, particularly for the developments only partially sold. Many of those committed to buy have a personal nightmare to look forward to. Mortgage defaults galore.

Good for her. Hopefully for her sake the disused reservoir she's built on isn't in a natural flood plain.