Retirement Questions

choi

Linton wrote: »

You have not told us the most important piece iof information in determining annuity rates - how old are you? How old is your dependent?

I am 65
My wife is 59

If you retire and both are 65 in average health you would expect around 3% for an RPI linked annuity, so say £7.5-£8.5K. However for an exact figure with all your requirements you would need a personal quote.

Using your full pot to buy an annuity would probably be a bad idea - better to take the 25% tax free lump sum.
But surely this will reduce the annuity and mean I had to find somewhere to save the cash
Or am I just being too cautious

Sorry for being such a newbie
Your help and advice is much appreciated

Are you buying an annuity through an IFA?
Yes
At 1% of fund
It would probably be worth while to do so. The worst option is to simply go for the one offered by the pension provider.

Thanks in anticipation

Linton

Yes the annuity would be 25% less if you took the TFLS. However £60K could form the basis of a long term portfolio of funds which could be completely sheltered in a pair of S&S ISAs within a couple of years to generate tax free income.

How much cash do you have? You say you dont want to tie it up for more than a year - so you might want to spend it all within two years? If the sum is substantial you could think about investing some of it.

A figure for comparison - if you took a level annuity the income would be about 60% higher than for one matching RPI.

choi

Hi Linton
I have in the region of 100k cash savings
This is currently earning circa 1% interest pa
After I wind up my business I hope to have at least an additional £100k
My state pension will give me just over 8k pa
I want my pension pot to give me around k8 pa

I would be looking for my savings and company cash to give me at least 4k pa extra without seriously affecting my funds

We get about £6k from a house we rent out
[Just over £9.6k pa gross]

Both our houses are mortgage free

A few points to consider

Im a cautios investor who hates risk
We live a relatively middling cost life
I hate the idea of my annuity being wiped out by inflation

AnotherJoe

choi wrote: »

Hi
I have decided to go for a annuity using my full pot of £255,000

Monthly payment in arrears
Increasing payments in line with Uk RPI
Guaranteed for 20 years
50 % Dependents Income Guarantee

What amount of annual pension would this give
Is there any way to improve on this

I do not like taking big risks
My wife and I are in good health

Thanks

That is **** over *** when you don't know how much you'd get !!
"What amount of annual pension would this give?"

I'm going to guess well under £3k.