retire in September

xylophone

And with regard to renting, are you looking for somewhere with a secure tenancy?

Housing Association scheme for older people etc?

luvchocolate

Thank you all very much for your help,
I am in private renting and on 3 lists for housing associations for over 55 years for 2 years now, so hoping will not be much longer, I will be moving back to my home time 70 miles away.
Bank accounts a little difficult has due to an ex partner leaving me in a great deal of debt so had to declare bankruptcy August 2012 so another 2 years before I have current account options.

I understand annuities are not the best deal but due to the past I need reassurance of enough income to pay my day to day living expenses.

My first plan seems weak now and drawdown does sound more attractive when I fully understand.

Can you still take the T.F.L.S in this case?

luvchocolate

Sorry forgot to mention as I will be moving I need to allow costs involved tops £10,000 for furniture etc, I am in good health and family members living into their 80's

My state pension before defer was £144 per week so its a really good deal.

I will do more research and sums, thank you all very much

xylophone

Can you still take the T.F.L.S in this case?

Yes you can - see post 8 above.

You might benefit from an appointment with Pension wise.

https://www.pensionwise.gov.uk/

luvchocolate

Just rang them to make an appointment. Also rang one of the companies you posted me a link to...appointment for advice approx £1500 to £3000 but he did not have the qualifications said I need some with G60 AF3.
I really appreciate your help, many thanks

xylophone

said I need some with G60 AF3.

A Pension Transfer Specialist? Why? Does your pension scheme have safeguarded benefits?

xylophone

Another search engine here https://www.unbiased.co.uk/find-an-adviser

You can refine your search by qualification.

jamesd

luvchocolate wrote: »

I understand annuities are not the best deal but due to the past I need reassurance of enough income to pay my day to day living expenses.

A pension pot in drawdown is pretty much like a savings account, you can ask for money from it whenever you like and expect it to arrive within a few days in your current account.

luvchocolate wrote: »

Can you still take the T.F.L.S in this case?

Yes, and you should.

Rather than paying an independent IFA you can ask the work FA to compare state pension deferral with the annuity options. Hopefully it'll be so obviously a better deal that you'll be advised to do that with drawdown providing the income instead of buying an annuity.

While it's good to use investments inside a pension in drawdown it's OK to use cash for a while and a few years is OK.

With the £144 a week starting level, two years of deferring that you have already would take you to £173.95 a week, £9,045.40 a year. Add £257 a month for the annuity (but don't buy it, this is just to work out the spending budget) and that's another 3,084, a total of £12,129.40 a year.

For more deferring you have a start at £85,500 in the pension. You can take 25% of that as a tax free lump sum of £21,375 and spend what you need to spend on moving while saving the rest or investing it in a stocks and shares ISA fund. The remaining £64,125 could fund the £12,129.40 a year for 5.3 years, ignoring interest or investment growth.

After that 5.3 years of growth on top of the two you have already the increase from the original £144 would be 75.7%, increasing it to £253 a week or £13,156. And on top of that you'd get all of the inflation-related increases for all seven years to both the starting and extra amount.

Earlier you wrote that you "Need an approx income of £1000 per month".

You can see from the rough numbers I've used that with drawdown and state pension deferral after taking the tax free lump sum you can do that now without any need to buy the annuity and start at a hair over 1000 a month, £12,129.40 is £10010.78 a month. Then once you start to take the state pension the £13,156 plus inflation increases for the deferred years gets you longer term at least £1,096 a month, plus those inflation increases while deferring and future inflation-linked increases.

So it looks as though it's easy enough to get a higher than annuity income without even having to use any investments.

For simplicity I didn't add any inflation increases to the income you take from the drawdown pension while deferring. Just do that once a year, say based on what the announced increase in the state pension due to inflation or the triple lock is.

luvchocolate

Thank you that makes a lot of sense, if I draw down £11,000 per year thus avoiding paying any tax and use my savings to top up.
Thank to everyone who has replied its very much appreciated.

jamesd

Yes, you can use savings or some of the tax free lump sum money to keep the money from the taxable part of the pension within your personal allowance, reducing what you take from that a bit to do it.