Ready for retirement

stephen0002002 · 7 March 2018 at 11:02AM

Hello.
I'm 62 this year and hope to retire in a few months time. I am lucky (I know). I have saved up in a personal pension of 250K - (invested in a Royal London fund ready for drawdown). I am also looking to Transfer funds from 2 final salary pensions the TV's worth about 250K in total. It seems like a good time to transfer those.

I would like my funds to grow so do I consolidate (and go with charges and another fund) or consider say index trackers, as they do look interesting (but I am a novice). Do I take the full 25% int free - is that a no brainer ?

I would like to have 30K per year for the next few years if that's possible so we can travel a bit. At least until our OAPs cuts in in a few years time. My wife (62) doesn't have a pension. I also like to look after my grown up kids when I can :-) Advice or thoughts would be welcome folks. Thank you very much.

MallyGirl · 7 March 2018 at 11:11AM

why do you want to transfer the FS pensions? Do they have any guarantees or extra benefits? You would need to get IFA advice to do this as over £30k

tacpot12 · 7 March 2018 at 11:26AM

What will the two Final Salary Pensions pay you and from what age?

maximumgardener · 7 March 2018 at 12:07PM

with 500k it makes sense for you to see an IFA . get some good advice worth its weight in gold and will save you making potential errors (expensive)? meet with 2 or 3 IFA's .Free initial discussion and decide which one you want to work with?

atush · 7 March 2018 at 12:13PM

If you are a nobiv investor, you need an IFA. And will need one anyway of transferring DB pensions.

And as above, why move the FS/DB pensions? What will they pay at age 62?

stephen0002002 · 7 March 2018 at 1:04PM

The Final Salary pensions gives me £9K pa total (after 25% int Free).
Yes I will use a F.Advisor -thanks.

My question is what do I do with the TV.

Transfer values are high atm thats why we are taking advantage of withdrawing now, while its good.

Are Index trackers worth considering (ie.lower costs over time) or should I plump for just another pension/drawdown type fund. I wanted to ensure a reasonable growth if possible. Or am I being greedy.

xylophone · 7 March 2018 at 2:48PM

Yes I will use a F.Advis

Not just any financial adviser.

https://www.fca.org.uk/consumers/pension-transfer

Advice on pension transfers must be given, or checked by, a pension transfer specialist. A pension transfer specialist must follow our training and competence rules, and have the appropriate qualifications and, with that, the permission to perform the function.

ams25 · 7 March 2018 at 2:50PM

if you are being offered £9k pa, is it index linked and is there a spouse pension. when does it start?

£250k TV for £9k pa may seem a lot but actually it is not so much. You may (or may not) be able to get a comparable return from investing (but only if you are prepared to invest at least 50% in equities and handle the volatility that will entail). If you already have £250k in a PP then having a core income from the FS pensions is a good mix of safe income (the FS and later SP) and additional capital/income from the PP invested.

a lot depends on your circumstances..how much do you need pa, other provision, likely life expectancy etc so some more information would gain you better feedback from people here.

LHW99 · 7 March 2018 at 3:49PM

a lot depends on your circumstances..how much do you need pa, other provision, likely life expectancy etc so some more information would gain you better feedback from people here.

And is the sort of information that a good IFA will go through and consider in order to provide rounded advice

ams25 · 7 March 2018 at 5:25PM

LHW99 wrote: »

And is the sort of information that a good IFA will go through and consider in order to provide rounded advice

indeed, but if people want to gain some knowledge here though feedback AND are prepared to do some research then they are better able to get the most from an IFA. And perhaps able to tell the good IFA from the not so good.

stephen0002002 · 7 March 2018 at 5:40PM

The 9K pa is what my F.Salary pensions would pay me "now" at 62.
Spouse gets 50% of F.Sal pension - ( but with a TV fund its 100% ).
Yes FS is index linked.

TxValue (of £250k) in theory would last a long time.
I'm 62 so if it lasted 20+ years I'd be 82 then.
( Coupled with my PP of 250k - it is looking good )

A T.Value fund with reasonable growth would be good.
I'm asking what could I do with the "final salary" fund when I transfer it.

And I am wondering if index trackers with low charges is an option.

I'm only looking for ideas, and thank you for those so far folks.

Ready for retirement

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