Soon to retire -- a sustainable income?

Uncle_Stinky

Thank you all for your replies, I think I now have some sort of plan.

1. Mount a cunning, yet subtle, mental attack on Auntie Stinky to persuade her to defer her pension.

2. Look at Tim Hale portfolios, read through Wade Pfau blog, and when I have a clear head Credit Suisse Research 2013 Yearbook. This, combined with re-reading Monevator blog should give me clearer idea of risks and likely returns.

3. Depending on results of 2, construct a set of sub-folios, as suggested by Linton, that I can rebalance annually, making sure that I have at least 3 years income (plus some) in cash to cope with market instability.

4. Make any increase in shares/funds/ITs proportion gradually, making sure to diversify by geography and sector.

5. Consider defer claiming own SP.

6. Relax and open a nice (or not bad but cheap) bottle of red!

Once again, thanks for all replies.

atush

Sounds like a plan.

kidmugsy

moneyfoolish wrote: »

I had originally thought that extra pension was the best option but then began to wonder if taking the lump sum would be better for my wife in case I die earlier than I hope! However, if I understand correctly, you're telling me that my wife will get some benefit from my extra State Pension produced by the deferral? I was completely unaware of this so I will investigate further.

Here are the rules.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210220/DWP024.pdf

"If your husband dies after claiming his State Pension and he has chosen to get extra State Pension, you will get extra State Pension paid with your weekly State Pension when you claim it."…

"You could inherit:
• 100%of the extra State Pension…he had earned on his basic State Pension
• 50%of the extra State Pension … he had earned on his Graduated Retirement Benefit...
• 50% of the extra State Pension … he had earned on his State Second Pension, or
• between 50% and 100% of the extra State Pension ...sum he had earned on his SERPS pension."

bigadaj

kidmugsy wrote: »

Here are the rules.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210220/DWP024.pdf

"If your husband dies after claiming his State Pension and he has chosen to get extra State Pension, you will get extra State Pension paid with your weekly State Pension when you claim it."…

"You could inherit:
• 100%of the extra State Pension…he had earned on his basic State Pension
• 50%of the extra State Pension … he had earned on his Graduated Retirement Benefit...
• 50% of the extra State Pension … he had earned on his State Second Pension, or
• between 50% and 100% of the extra State Pension ...sum he had earned on his SERPS pension."

Sounds like a way for auntie stinky to plan things possibly........