250k lump sum

maybelandlord

We will be seeing a FA but am interested in getting opinions as to what would be likely options so we (well, I) can do some research in advance.


Some background:
OH is 53, being made redundant next July. May take 130k lump sum and stick 100k of that into pension (currently waiting on info re Annual Allowances etc). Seems he can basically then take the same amount out tax free and claim pension from 54. Alternatively, he can take around 250k lump sum. We'll do the calcs and see which seems best.


1st question - is there an accepted time before a lower lump sum/higher pension should break even for it to be seen as a good deal?


Secondly - assuming he goes for higher lump sum, what would you recommend doing with the 250k? Planning on spending lot of year abroad, have a place out there already paid for, 4 btl's in UK plus somewhere to stay. Very generous pension so that and btl income will give good standard of living. No immediate requirements for 250k. Already has around 100k in savings (cash, premium bonds, S&S ISA). Appetite for risk fluctuates tbh, but inclined to be fairly safe overall, or at least can tolerate risk if spread.


Really interested to see what people think before he sees the so-called experts!


Thanks in advance.

Wilkins

Since you already have a lot invested in property, my choice would be to put more into equities, perhaps a mix of low cost index trackers and investment trusts.