Pension Pot

cornishman68

Hi can anyone please tell me how much after i have taken my 25% lump sum the remaining pot of my pension will pay?? Is there a formula used to work this out i am expecting my total pot to be about 250k.:j

Thanks

swiss69

Depends on annuity rates at the time and the age you decide to take the income.

Always shop around for the best rate - Use an IFA if in doubt.

Alternatively you could consider Income drawdown where you select the level of income within parameters and the fund remains invested. Income is then reviewed every five years and the pot invested needs to be able to sustain it. Anyone effecting drawdown a year ago could be in trouble now though so its not for everyone.

A male age 65 would get around 7% at the moment to give you an idea - that would be a level pension and would therefore obviously erode in value over time taking the effects of inflation into account. If you want an incoe that rises each year then you would get closer to 4% initially.

EdInvestor

swiss69 wrote: »

Alternatively you could consider Income drawdown where you select the level of income within parameters and the fund remains invested. Income is then reviewed every five years and the pot invested needs to be able to sustain it. Anyone effecting drawdown a year ago could be in trouble now though so its not for everyone.

This is not correct.It depends entirely on how the fund was invested - and how much income was taken.

Here's a general guide to annuity rates at the moment:

www.fsa.gov.uk/tables