How do I take a £60,000 Pension taken in Chunks

ianpalmer2007

Hi - my wife - aged 56 - has this pension and she will only have an income of £4,000 per annnum from a property she rents out.
So we want to take 25% lump sum + circa £6,000 to use up her allowances next year (she gives me £1100 unused allowances) followed by £6,000 per annum for 7/8 years so she gets it out tax free before she draws her state pension.

I get my state pension and a small private pension of £7,000 per annum so we are not in a position to ignore the tax savings that can be made and we can enjoy the funds whilst we are young enough to do so.

I believe it is a "drawdown" arrangement I need to get set up and my limited research shows Royal London as being highly rated.

What is the best way to arrange this and do I have to pay for an ifa to set it up for us.

Many thanks for reading this far :-)

dunstonh

I believe it is a "drawdown" arrangement I need to get set up and my limited research shows Royal London as being highly rated.

Correct. Drawdown is needed if you plan to do it that way. It may not the be only option available (UFPLS could work too).

RL is highly regarded and it the UK's largest provider of drawdown. However, it is only retailed via IFAs and whole of market FAs. If you dont want to use an adviser then they will not be available to you.

Triumph13

Also look closely at the fees charged by the various providers - some seem to charge for drawdown, but not for UPFLS which would make the latter a better option.

jamesd

Also ensure that you are each making pension contributions of £2880 net a year until you reach 75.

You might consider state pension deferral if you reached state pension age before 6 April 2016. That's because it will be increased by 10.4% per year of deferral, inflation linked and most of the increase inheritable by her. It's an excellent way to increase guaranteed income.

For those reaching state pension age after that the increase is 5.8% not inheritable.

A person who has claimed their state pension can still start to defer once.

ianpalmer2007

Many thanks - UPFLS - just googled it and I thought you could only do that before 55 and she is 56 now.


I will look at the Royal London list of IFA's and see how much they charge for a typical consultation.

Many thanks

Linton

ianpalmer2007 wrote: »

Many thanks - UPFLS - just googled it and I thought you could only do that before 55 and she is 56 now.


I will look at the Royal London list of IFA's and see how much they charge for a typical consultation.

Many thanks

Wrong way round - 55 and older!!