MSE News: 'Second line of defence' for pension savers to be introduced

Pincher

gadgetmind wrote: »

So what? You're living off the income, and ITs are very good at creating rising income streams, and they have a revenue reserve to provide smoothing. The capital value will bounce around, so ignore it. If all you're interested in is the income, then go for something that generates this, and let your relatives worry about capital after you've kicked the bucket.

If not losing any capital value is important, look elsewhere, but those guarantees cost so you'll have less income.

I think you should watch Kung Fu Panda more, and learn to let go.
It's retirement, the end is nigh.


The draw down friendly With Profits scheme doesn't even exist,
but if it did, the underlying portfolio could very well be how you like it. I wouldn't mind at all if they stuffed it with investment trusts. With Profits is opaque, but how many pensioners actively scrutinise their portfolio, or is even capable of understanding it?


Yes, you do.

jem16

jamesd wrote: »

I didn't work that out. How abut you picking your preferred example and doing the calculations?

I may do but as you seemed to have looked into it I wondered if you already had figures.

It'd be particularly interesting if you think you've found a case near to state pension age where deferring looks like not being the best option in normal good health.

I suspect the problem may arise as the state pension continues to move from age 65 to 68 and people want to retire earlier than that so they may have used up some of that pension pot.

jamesd

I could work an example but it's more persuasive if people pick their own cases and run the numbers.

I agree about time to state pension age being an issue, it's part of why I've been writing about "around state pension age" or similar. Eventually the cost of leaving the money in low risk things would offset the gain from deferring vs annuity for those who want low risk. The numbers do seem to mean that even at normal retirement ages deferring beats buying an annuity still. That's in part because annuity payouts are lower at earlier ages.