As I mentioned, I don’ get a lump sum in retirement but I get a percentage of my salary depending on length of service. I also retain full medical insurance as long as I am in receipt of a pension from my current employer. The plan’s benefits mean that I will never have to worry about medical expenses or nursing home costs in retirement.
Hello,
Just how reliable are these arrangements - and please, try to my objective here?
Is the pension fund ring fenced, and in no way at risk, if something were to happen to your employer, tomorrow?
Is the medical insurance provided by a completely independent third party? Are the ongoing premia for this medical insurance paid monthly, or yearly, and directly from your employer?
It sounds like you are lucky enough to have an extremely good benefits package, hence the questions.
I'd agree with the suggestions above about taking out a Secton 72 policy, utilising the annual children's gift allowance, and exploring the possibility of buying extra years on your wife's pension. The sooner the two of you can have the true financial choice to retire, the greater flexibly you will really have.
I've mixed views on getting involved in residential properties, particularly if your aren't prepared to take a hands on approach, to managing and maintaining the property, yourself. However, that said, setting the kids up in a house (not an apartment), initially while they go to college, and having them utilise the rent a room allowance to help pay for the property, is definitely worth looking at.
Also, don't be too strict on yourselves, go and enjoy some of your hard earned income.
Well done on your achievements to date, it sounds like you are doing a lot better than most...