Early-retirement wannabe

aldershot

atush wrote: »

Well i favor my children more than any cat, so i'd leave the money in trust just in case lol.

You haven't met my children or my cat

Seriously though, I think there is a limit on what you can or should do. You could leave a chunk to your child who then bails out a bankrupt partner who then runs off with the nanny. Once you're gone, others have to take their own responsibility and trying to micro manage the future will upset someone.

atush

If you prefer your cat over your children, doesnt say much for your (or your ex's) parenting skills lol.

But thats ok, my kids prefer the dog over me, so all my efforts on their behalf are under appreciated. They esp dont like I charge them rent if they live here ;D

One wants a rebate in August when he is in Rio at the olympics

jamesd

AnotherJoe wrote: »

Are you "in the clear" if at point of withdrawal, you have say 900k, you take out the 25% TFLS and then later on the remainder grows to well above LA?

There is another check at age 75 that counts the increase in the value of the pension pot since crystallisation. The way you avoid that one is by taking money out so that the value hasn't increased or hasn't increased by enough to go over the LTA.

AnotherJoe wrote: »

What about merits of taking TFLS and putting in ISA? I could make two contributions this year and then two more in the new tax year effectively out of the SIPP even if borrowing forward, that will be about £70k for a couple?

Yes, ISA is a good option. It means that you can both take the money out free of income tax and keep it that way in the future.

But do look into the VCT option because that can greatly increase the amount you can take out with no net tax charge. I generally like the concept of using the tax free lump sum to fund the VCT buying to keep the rest effectively untaxed on the way out.

AnotherJoe

Thanks james, will check these.

Alan_Brown

I'm struggling to work out how to calculate the income I would receive in retirement. I have £156k in a SIPP, £25k in a company pension to which I contribute £10k a year, and a small final salary pension that will pay the equivalent of £4k a year when I retire (it pays from age 65). I'm currently 48.

I'd like to retire at 60, which might mean I have upto £300k in the pension and just 5 years before I receive the final salary and then a further 2 years to state pension.

What sort of return could I expect in drawdown from a pension pot of £300k? What would an annuity pay?

jamesd

If you use the more modern rules you can perhaps take 6-7% of the value, long term, more initially while you're replacing the state pension, depending on which drawdown rules you use and your tolerance for changes in income. Have a look at the worked example of the cFiresim Guyton-Klinger method to see how to plug in the numbers for the various pensions and pots and also look at the changes I mention that have been shown to further increase safe withdrawal rates.

An annuity might pay around 5-6% without inflation linking, more like 3-3.5% with. State pension deferral buys around 5.8% and is a better alternative, it's inflation-linked also.

Drawdown tends to start with relatively cautious levels in case you get early bad results but over time you can increase it if you don't experience the worst of times. The Guyton and Klinger paper from the link I gave earlier is a good read.

Mr_Costcutter

mgdavid wrote: »

If you had offspring I'll lay 3 to 1 that your views would have changed....

Yes, and when the grandchildren arrive, the spending starts again lol

stevevee7

Does anyone have any recomendations for a book to read on pension planning and/or a computer programme to assist in all things to do with pensions (budgeting etc). Any suggestions welcome.

atush

for planning look at Retire Easy website, but dont think it covers budgeting (but you could use the budgeting forum here)

You also read the thread "The Number" here.

jojorose

Ive read pages and pages of this thread but not had the stamina to do the bit in the middle..
What stuns me is the amounts discussed in the pension pots., concerns about luxury items, holidays etc.

Life is short. Your kids are going to blow anything you leave them on things you never had. You dont need enormous homes, you dont need new clothes, you dont need takeaways or meals out. You just need enough. I think I must live in a different world

My husband has a pension of £9,000 a year, which thanks to Tata is about to take a hit. I have several small pots which we began to draw down on my 55th birthday to pay into the bill account which should last until he gets his state pension. We own a small house in a northern part of the UK. We did blow on a VW to camp and tour but our needs are simple. Our savings, I mean his, are 4 x his pension. We consider ourselves more than fortunate.

Your delay is down to fear. Just do it. If you are unhappy, depressed counting the days JUST DO IT.

Apologies if i offend.