should i cash in my final salary pension ?....?

Sony_smartphone

!

Join Date: Apr 2015

Posts: 4

Thanked 1 Time in 1 Post

!Lots more info needs to be known here.[/QUOTE]

Hi,, I've given more details of my situation in earlier posts,, pension value at 60!
and when we, d get our state pensions etc..all comments have been very welcome and I, m definitely learning a lot from all your experience, , I've recently read a thread on "Flexi access drawdown " I think this might be a possibility going forward,,, my D.B pension pot is sitting at £175k,,, if I take my 25% tax free approx £43k I reckon we live ok on £16k pa,, this would do us for almost 3 years, then maybe look at drawing more out of my remaining pot, taking just enough to ensure to stay under my personal tax allowance, , and then topping it up as required from our savings until our state pensions kick in,,,,, does this plan seem ok or am I missing something,,,

Sony_smartphone

Opps,,,,, sorry ,,, told ya I was new to forum,,,,,, posted same message twice,,:T:beer:

mgdavid

you have a good DB pension potentially paying you almost £10k per year from 60. That plus 2 state pensions of £8k each means that after SP age you both will be able to live comfortably and have a bit of leeway for extras or unforseen events.
So as was said very ealy on, 'Leave the DB pension alone safe in the knowledge that someone else has taken that responsibility from you.'
It's biggest advantage is that it's cast iron guaranteed and needs no looking after by you.
You have savings (and your wife's £13k pot) to live off until 60, and to supplement the DB pension until 65.

PeacefulWaters

Sony_smartphone wrote: »

Hi,, I've given more details of my situation in earlier posts,, pension value at 60
and when we, d get our state pensions etc..all comments have been very welcome and I, m definitely learning a lot from all your experience, , I've recently read a thread on "Flexi access drawdown " I think this might be a possibility going forward,,, my D.B pension pot is sitting at £175k,,, if I take my 25% tax free approx £43k I reckon we live ok on £16k pa,, this would do us for almost 3 years, then maybe look at drawing more out of my remaining pot, taking just enough to ensure to stay under my personal tax allowance, , and then topping it up as required from our savings until our state pensions kick in,,,,, does this plan seem ok or am I missing something,,,:cool::beer:

Why throw away the guarantees you currently have?

kangoora

On the face of it the plan 'appears' OK.

Assuming you take your TFLS and invest the remaining £130k in the stock market you start drawing your £5.2k/year (4%) plus another £5k to get you to your personal allowance. Thereby dropping your pot by circa £5k/year. The pot could last 20 years.

What happens if after 2 months we go through another 2000 or 2008 market crash and your investments lose 30% of their value. Your £130k is now only worth £86k, at 4% you only get £3.5k so need to take £7k a year from a reduced pot size to get the same income. Any increase when the markets recover would be limited as you are drawing down the capital so there is less 'money' in there to enable a full recovery.

Personally (and I am in a very similar position with a couple of DB pensions I have), I'd live off savings for a few years and take the guaranteed income for life from 60 onwards, unless you have a reduced life expectancy that hasn't been mentioned yet. You should still have circa £50k+ reserve savings at age 60.

Depends if you want to gamble, with a big proportion of your life savings, over taking a guaranteed income for life!

Sony_smartphone

To mgdavid,,, peaceful waters and kangoora,, and all the other people who responded to my thread ,, I want to thank you all very much,,, your knowledge and opinions have been invaluable,, I think I, m nearing the end of my decision making journey,, there certainly is a lot to take in, and as everyone in the media etc kept saying "its a decision you have to get right",,, ,, this was my first time on any forum and I cant express enough my thanks,,, an invaluable tool for sure,,, any other comments or opinions more than welcome,,, once again,,,, thanks