Retirement arrived earlier than expected

kidmugsy

In your shoes I'd get up to date with the details of the DB pension, in particular the index-linking it offers, and the terms (if any) that cover taking a tax-free lump sum from it.

Meantime, I urge you to consider the suggestions of atush and others (i) move your DC pension to HL or the like (unless FP happen to offer a good value drawdown deal), (ii) top up in 15/16 using your savings, (iii) probably leave it invested as cash rather than going for equities or bonds.

You would then be free to take its 25% tax-free lump sum within 15/16 to cover a few months of living expenses. In 16/17 onwards you can take drawdown of up to £11k p.a. free of income tax. You can even consider harvesting further advantages by contributing £2880 p.a. for 16/17 onwards so that you can take a further tax-free lump sum later, and treat the rest as emergency savings.

Worried_of_wakefield

Blimey, I thought work was stressful! you guys don't fancy popping into my local for a few free beers do you?


Shall make appropriate phone calls to FP tomorrow and have already received draw down quotes from 'My pension Expert' - any nasties I should know about this company?


Whilst I thought my plan was too simple and probably not worth taking professional advice I think on reflection I will.


Thanks everyone

neilvw

Friends Life don't offer flexi-access drawdown, only full cash-in and annuities. You'd need to transfer out.

https://advisers.friendslife.co.uk/products/new-pension-freedoms/index.jsp