Presumably those figures are thousands of UK£?
That means a rather small pension pot. After retirement it’s still possible to pay into a pension, meaning that any of the £300k cash they can put into pension immediately gains 20% in value courtesy of HMRC.
Obviously this is then taxable when drawn down, but with two personal allowances that is probably going to stay tax free.
Hard to say, it depends on many factors. Usually investing for retirement, then drawing it down when needed, or passing it toward like the house. But you may be past that point. Did you have a financial retirement plan of sorts?
I’m assuming it means annual pension income of £80k before tax. That’s a very good pension indeed. Then a house and cash in the bank to play with. Probably the best thing to do with some of the cash is to give it to the children.
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That’s the LGPS & a large “European” aerospace company ( not Boing!) for ya.
What are the rules on that these days?
Ah yes, you could be right. If so, I guess they could spend the £300k on whatever the hell they want.
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Lots of Jethro Tull 40/50 th Anniversary box sets?
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If that’s what floats your boat it has to be more fun than premium bonds!
One of the things that the hypothetical “couple” should do is change their twenty year old Audis……but the trouble is they’re both running well, and doing only about 4K miles per year
Premium bonds have been mentioned but the hypothetical couple know buqqer-all about them, other than one party had a few when he (or she, or they) were a kid……and won absolutely nowt!
Easy access, tax free, mediocre interest rates if you have average luck. Lots of people put the max allowed £50k in just because it’s an easy place to stick cash savings.
Yeah, that’s what I’d heard, OTOH, I assume that it would get the cash in the NW current account below the government safety net of 85K, if that still valid?
So, Mr Hypothetical has a mortgage free house, an annual after tax pension income of £80K per year and £300K cash? Is that right. Seems like a pretty good problem to have.
Over £85k in your current account? Right now it’s pretty easy to get interest on savings that is above inflation!
Yep, and there are no complaints, and the hypothetical couple don’t want to sound smug.
There’s a lot of good pre-retirement advice both here - I cite Jaime, despite his dubious footy allegiance (sorry mate), and out there.
So I suppose the question is what happens when one is dumped into retirement. One party was expected and took the 25%, the other not, but with a substantial payoff.
Two weeks later Covid hit the UK and everything went on hold. With various other (but non financial issues), then four years later, they’re only just coming “out of it”.
Being well placed the, it’s probably a case of finding a balance of what needs passing forward to children etc (including the home) and what you use for yourselves to enjoy retirement?
I’d have retired early in their situation.
80k pension a year for life and 300k in cash? This ‘friend’ is in a very select group and very lucky. Tell the friend if they’re asking for advice, don’t go on the internet forums.
I think the “friends” are very aware of that, which is why they have been reluctant to participate in what is a very interesting thread about finances in retirement.
I still think that Jamie’s Mum looks good…. 
When you say cash, you literally mean no interest cash, just sitting there doing nothing?
Sounds about right.
Hence the question.