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Large Pension Pot
Comments
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£7.5k state and the rest from the £500k
Ah that changes things. So you take 25% tax free lump sum from the £500K leaving £375K. Then you buy a £12.5K fixed rate annuity at say £200K. So you are left with £175K for the drawdown SIPP. Using flexible drawdown sufficient to bring your income up to £40K, perhaps putting excess money into 1 or 2 S&S ISAs each year, seems reasonable. You should be able to empty your pension pot well before your Life Expectancy, if that's what you want.0 -
Ah that changes things. So you take 25% tax free lump sum from the £500K leaving £375K. Then you buy a £12.5K fixed rate annuity at say £200K. So you are left with £175K for the drawdown SIPP. Using flexible drawdown sufficient to bring your income up to £40K, perhaps putting excess money into 1 or 2 S&S ISAs each year, seems reasonable. You should be able to empty your pension pot well before your Life Expectancy, if that's what you want.
That is exactly what I want to do!0
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