Prior to Covid19 I was already digging my escape tunnel from aviation. I've been flying since 1995 and having hit 50 a few years ago, I started to become more aware of the very negative impact that flying was having on my health and my relationships with my family. To be the richest man in the graveyard is not one of my ambitions.
Due to Covid19 I last flew at the beginning of March and I personally haven't missed the job at all. I feel more relaxed than I've ever felt and sleep better than I've ever slept....no more am I going to bed at half seven in the evening, worrying whether or not I will hear the alarm which is due to wake me at 0300 for the early check-in. My relationships with my family and friends are better than they've ever been, life has slowed down and I'm enjoying every day. I still have no idea whether or not I will be made redundant, I will just have to swing with the punches but rest assured I am planning for the worst (best?) case scenario.
My big turning point in flying came several years ago when I did a pension review. I found out some basic information :-
What was the value my fund?
What happens to the fund if I die before my wife?
What happens to the fund when we both die?
If I go down the annuity route, what is the likely rate I would get on retirement?
How much was my 25% tax free lump sum and what could I do with it to generate an income?
What income would the remaining 75% provide?
What is the life expectancy of pilot after retirement?
I realised that even though my pension fund was quite large, I would be retiring on a very meagre income in comparison to my current Captains salary. After my Oh *uck moment and a bit of blind panic I started reading everything that I could to do with pensions. I learned that through my property business, it was possible for me to legally access the pot of money that forms my fund. I was amazed to learn that I could access it immediately (I was 50), and that through my business, I could utilise that fund to create a tax efficient income now. At the same time I could also build a trust which would be passed to my family tax free and in full should I die.
Even though I have full access to my pension fund via my business, it remains uncrystallised and I'm still free to contribute the maximum amount to it each year.
Since that 'Oh *uck' moment I've worked hard to make my plans a reality and to be quite honest Covid has cemented my decision, its given me the time to expand on my plans and to bring some of them forwards. I definitely do not want to be reliant on some greedy, bonus hungry airline CEO/COO etc to provide for my family and our lifestyle for any longer than I have to.