lump sum annuity

Usmillers

I have just been TUPE over to new firm, I was with old company 7 yrs pension is worth around £21K usual choice of lump sum then annuity with them or new pension etc etc
I will take the 25% lump sum as needs must but what to do with the remaining £15K
I have a good pension from my main job of 20yrs (career change) with a gratuity which is fine and will pay out at 60, and I am paying into new one with new company, but within the mental health business none of us can guarantee a job every 3yrs when contracts are up for grabs!

So, opinions please what to do with £15k !
thanks in advance

Loughton_Monkey

If you must take the lump sum, I believe you don't have many options for the £15K. Either you must turn it into an annuity, now, or failing that, put it in some form of unsecured pension. This would almost certainly mean 'drawdown'.

The money would remain invested and you can draw down (up to prescribed limits) certain amounts, but it would tend to be a good idea not to draw it down for quite a while. £15K, though, is considered quite a small amount for drawdown, and charges would be a more significant proportion of the value.

Usmillers

That's the problem it is a small amount but 5k would come in useful at the moment!
I cant transfer to the new pension plan but I am double checking if I leave it until retirement its £600 if I take the 5k or £800 if not so I would have to live another 22 years to recoup :rotfl: