TFLS positioning for safe near term access

fcandmp

I am planning to take my £150k TFLS from DC pension (£600k value) before April 2016 crystallising that part of my pensions. The help I would appreciate the forum's input on, is how I spread it for access over the following 5 years until my NRD and DB schemes come into payment.

I am assuming I will use £30k immediately in the 2016/17 to position my and OH ISAs (this years allowance already used). We also already have 3 Santander 123 accounts fully positioned, and use Nationwide as our secondary bank account. I have a low tolerance for risk during such a short investment period and wondered how you might consider spreading for access and best return? For background, I am just turned 55 and currently still working in a well paid role, planning to work part time through to April 2017, and my wife is a non-earner / carer.

atush

Have you got a pension for your wife? Even as a non earner she can ut in 2880 per year which receives TR and will then become 3600. Do this each year going forwards as she has a PA which might go to waste.

Fixed term bonds are now beginning to rise a little, so look at them, and I guess NSI if you dont want to invest any of it.

You could both use regular savers too.

Any reason you are taking the money before you retire?

coyrls

I think a safe way is to model what you want to use in each of the five years and then place those amounts in 1 (2.06%), 2 (2.38%), 3 (2.65%), 4 (2.75%) and 5 (3.08%) year fixed savings accounts, taking care to stay below £75,000 with any one institution. You'll probably at least keep pace with inflation (not guaranteed obviously).

fcandmp

Atush, thanks for your reply. Early crystallisation to benefit from 1.25m LTA as already over 1m.

fcandmp

Atush, also yes started a stakeholder pension for my wife this tax year (should have done sooner!)