High-earning consultant needs quick retirement plan after late-life divorce
A 65-year-old consultant earning £200k yearly must rebuild his finances after divorce settlement. With just £30k in savings heʼs looking to create solid retirement plan in next 5 years
Seamus Gille faces a money-management challenge after his recent divorce; the high-earning consultant needs to build retirement savings from scratch
Despite earning £200k yearly as a free-lance consultant Gille has only £30k in savings and expects £28k annual pension income. His current situation includes pending house sale in Potters Bar worth £1.1m which will be split 50-50 with his ex-wife
I dont want to stop when Iʼm at the top of my game
The globe-trotting consultant pays £1‚800 monthly rent in St Albans (most expensive non-London location) while supporting his four grown-up children with £200 monthly life-time ISA contributions; he plans to work for 5 more years earning about £1m
Financial expert Felix Milton suggests a two-fold strategy:
* Put £20k yearly into stocks-and-shares ISA
* Use remaining savings for pension contributions with 45% tax relief
* Consider deferring state pension for increased benefits
Mortgage specialist Elena Todorova proposes several options:
- Buy £550k house outright using divorce settlement
- Take £140k five-year mortgage based on current income
- Consider lifetime mortgage at age-70 releasing up to £231k
The french-speaking consultant hopes to maintain his cultural interests - museums theatre and international travel; however his post-retirement income will be roughly 20% of current earnings requiring careful financial planning
