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  • FIRST POST
    • NorthernGeezer
    • By NorthernGeezer 7th Jan 18, 11:43 PM
    • 40Posts
    • 5Thanks
    NorthernGeezer
    Early Retirement
    • #1
    • 7th Jan 18, 11:43 PM
    Early Retirement 7th Jan 18 at 11:43 PM
    62 years old and having been diagnosed with a non-terminal brain condition 2 years ago (potentially dementia related) i have now decided to retire in April this year and i'm looking for some suggestions in what to do with my current employer provided multi-asset fund investment with L&G (£10K) and two closed fund previous employment packages now with Phoenix (£57k).
    I'm still savvy enough to set the ball rolling myself but who knows what the future holds with regards to the ongoing management of my decision.
    Having spoken to both companies, Phoenix have confirmed a no-cost implication to transfer-out, however, L&G wont allow me to transfer-in due to the fact that both closed funds are 'with profit' unless i undertake this via an IFA.
    I've also got £40k savings i can put in to any plan with the idea of taking advantage of the tax breaks.
    Its my idea to 'enjoy' a tax free retirement which will probably require me to withdraw £12k a year from the plan till my state pension kicks in at 66 and then potentially £4k a year to keep me under the tax threshold.
    I've dismissed annuities, even health enhanced amounts are very low, so i'm probably looking at drawdown.
    I've looked at Pensionbee as a possibility given the fact that once its set up it can manage itself with very little input.
    Any alternative suggestions would be appreciated.
Page 1
    • xylophone
    • By xylophone 8th Jan 18, 12:43 AM
    • 24,074 Posts
    • 14,079 Thanks
    xylophone
    • #2
    • 8th Jan 18, 12:43 AM
    • #2
    • 8th Jan 18, 12:43 AM
    You intend to make as large a pension contribution as possible in this tax year (17-18) while you still have relevant earnings?

    http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes

    You now wish to transfer out the WP pension?

    You might consider opening a SIPP, making the highest contribution possible as soon as possible, transferring in the Phoenix pension and possibly the WP pension but you might need to look into the position regarding that more carefully - would there be penalties to transfer out?

    You might consider taking the 25% PCLS, depositing it into accounts which would give you as much interest as possible and taking a monthly income for as long as possible before starting to draw down the rest of the pension which you might consider keeping invested.

    http://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+SIP&gcl id=EAIaIQobChMIg8C91ZDH2AIV4b3tCh0cgArvEAAYASAAEgJ 9NvD_BwE

    might be worth a look.

    http://www.thisismoney.co.uk/money/investing/article-4689676/Five-funds-invest-pension-drawdown.html might be worth a read.

    Have you obtained a new state pension statement?

    https://www.gov.uk/check-state-pension
    • atush
    • By atush 8th Jan 18, 12:49 PM
    • 16,460 Posts
    • 10,204 Thanks
    atush
    • #3
    • 8th Jan 18, 12:49 PM
    • #3
    • 8th Jan 18, 12:49 PM
    Are you married? have any dependents?

    You could open a power of attorney for them to control your finances once you are no longer able.
    • NorthernGeezer
    • By NorthernGeezer 8th Jan 18, 8:35 PM
    • 40 Posts
    • 5 Thanks
    NorthernGeezer
    • #4
    • 8th Jan 18, 8:35 PM
    Early Retirement
    • #4
    • 8th Jan 18, 8:35 PM
    Thanks for the quick response guys.

    xylophone................
    You intend to make as large a pension contribution as possible in this tax year (17-18) while you still have relevant earnings?
    Basically yes. £40k in savings and the £57k from the Phoenix funds
    You now wish to transfer out the WP pension?
    I'm still open minded about the small WP pot with L&G although my feeling is that everything should be rolled in to one somewhere that requires little input from myself, which is why i was looking at Pensionbee.
    You might consider opening a SIPP, making the highest contribution possible as soon as possible, transferring in the Phoenix pension and possibly the WP pension but you might need to look into the position regarding that more carefully - would there be penalties to transfer out?
    My thoughts are to go down the SIPP route but i'm concerned about how long i'll be able to manage this.
    Phoenix have confirmed no transfer out fee's and i've not approached L&G yet.
    You might consider taking the 25% PCLS, depositing it into accounts which would give you as much interest as possible and taking a monthly income for as long as possible before starting to draw down the rest of the pension which you might consider keeping invested.
    Again, this was my thought too, use cash in the bank before i need to take from drawdown.
    Have you obtained a new state pension statement?
    Yes, gives me £140/week at 66 so if i want to stay tax free, i can draw around £5k year when i do start to take from drawdown.
    My biggest fear is not so much running out of money but running out of a meaningful life, certainly the part where i cant manage my own affairs.

    atush.................
    Are you married? have any dependents?
    Married yes, no other dependants.
    You could open a power of attorney for them to control your finances once you are no longer able.
    I've given one of my sons power of attorney for when the time comes.
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