Advice on my Pension Plan

camelopardis

Hello,I've just taken voluntary redundancy and am hoping I can now retire early if I've done my sums right. I'm 51, wife is 50, also no longer working.

We would like an income of at least 25k . I currently have a DC pension worth £140K (with protected NRD of 50), my wife and I also have final salary pensions jointly worth approx £18K pa at 60, and a reliable rental income of £12K a year. I also received a redundancy package worth £45K

Becuase I dont want to lose any of the benefits of the final salary pensions, I feel I should leave these until 60, so as not to suffer actuarial reductions (they can be taken from 50).

My plan is to use redundancy money plus rental income, and take 25% lump sum from DC pension and start drawing it down up to my personal allowance every year (my only income, rental income all in wifes name). Then start taking final salary at 60. Current DC pension doesnt cater for drawdown so I'll have to transfer it somewhere.

My question is, is this a good plan, or is there something fundamental I'm missing? Also, if I transfer the DC pension in order to take advantage of drawdown, do I then lose the protected retirement age of 50? (if so, I can still hold out until 55 as I have other savings to draw from)

Triumph13

I think you'll find that you probably have to wait until 55 to access that scheme. I believe transfers are only allowed if everyone in the scheme transfers at once and if you take the benefits from within the scheme you have to take all of them at once including any DB elements - that was certainly the case when I looked into mine!

Well_excuse_me.

At 60 you have £18k pension plus £12k rent (total £30k)so thats OK
From 55 to 60 you can take £18k pa from your DC pension plus £12k rent (total £30k)so thats OK.
From 51 to 55 you have £12k rental income and can take £11k pa from your redundancy pot, so you need to find £8k (4*£2k) to achieve your £25k.

From 67 you will have (?) £18k pension, £12k rent, plus two state pensions, plus whats left of your DC pension, plus any remnants of savings.
I have no doubt someone will improve on this