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Retirement Plan Pre 65
Delsol_2
Posts: 3 Newbie
I will be 60 this year and have enough NI contibutions for full state pension at 65. Currently I am still working and aim to finish this year . I have 2 pension funds one in cash approx £85k and one protected rights approx £55k. My plan is to take 25% cash and add this to £80k savings at the end of 2009 , then use this fund within a bank account (safety in mind) and take £10k per year to add to whatever pays best from the remainder of my 2 pensions up to starting my own and my wifes state pension at 65 and then £3k/yr onwards until the fund expires. My DIY calculation based on 2-3% bank interest and taking 5% extra each year lets my cash last well beyond 70. Starting this year should give me sufficient in £15k/yr. Any comments would be appreciated , good idea or bad idea , better way of using the 2 plans and my savings etc.
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Comments
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My plan is to take 25% cash and add this to £80k savings at the end of 2009 , then use this fund within a bank account (safety in mind) and take £10k per year
You call that safety?good idea or bad idea
No inflation protection. Guarantee of erosion of capital and probably not the best option for you. There are better options for you.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
70 is very young assuming you are in reasonable health... I know plenty of people still going skiing at that age let alone travelling etc.0
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You call that safety?
No inflation protection. Guarantee of erosion of capital and probably not the best option for you. There are better options for you.
All of my savings are spread to hopefully give me some protection from any bank failures , thanks to CLAPTON and dunstonh for your replies I guess I am being too cautious and should seek more advice.0 -
I would agree with the other comments and would add that you need to plan that you may well live well past 85. Believe it or not, you have a relatively small pension pot and you need to plan well, very well, to be able to enjoy your retirement. Speak to an IFA and work out your lifetime cashflow, sooner rather than later.I am an Independent Financial AdviserHowever, anything posted here is for discussion purposes only. It should not be considered as financial advice.0
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Thanks to brianrhill , I understand your comments regarding the size of my pension pot and I'll be seeking advice soon , cheers.0
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