Should I use an IFA?

gadgetmind

Rymo wrote: »

That's very interesting dunstonh, I was under the impression that was only for very large pots that could guarantee a set amount of income in excess of a certain regulated amount.

It used to be for larger pots, but no longer.

Each year you can draw down what's called the "GAD limit" (used to be 120% of that, but the rules changed) and this varies over time with annuity rates, but one might hope that such rates will go up and that we might move back towards 120%

Drawdown has a number of advantages -
1) You remain invested so should (hopefully!) beat the gilts that annuities are based on.
2) Your spouse can inherit your pension pot and either take an income or (after paying tax) take the money.
3) You can "turn it down" once state pension kicks in to derisk.

Note that (1) is a double-edged sword!

Rymo_2

Thanks to all for your opinions, I have certainly got plenty to think about. As for my original question I think at present I don't need the advice of an IFA but as I get to the stage of actually realising an income from my retirement savings an IFAs advice is almost certainly going to be worth paying for.

Without having had the chance to look into it further at present Drawdown looks pretty attractive to me initially, but I will get advice nearer the time because one thing we can all bank on is the rules will have changed!

gadgetmind

Rymo wrote: »

As for my original question I think at present I don't need the advice of an IFA but as I get to the stage of actually realising an income from my retirement savings an IFAs advice is almost certainly going to be worth paying for.

Definitely if you look at annuities, and maybe even otherwise. The tax situation in retirement is complex, particularly when involving spouses, and you need to optimise this. As for investing and growing wealth in the meantime, I find the fact that you already hold some equities as reasonable evidence that you can DIY but I do suggest reading that Hale book.

Without having had the chance to look into it further at present Drawdown looks pretty attractive to me initially, but I will get advice nearer the time because one thing we can all bank on is the rules will have changed!

Sadly, you're right. Planning for retirement is like trying to walk in a straight line during an earthquake, with HMG shaking the ground beneath our feet every bit as hard as the stock markets.