Managing own pension

Fretman12

I see what you are saying my 'plan' would be next year I get £300 NHS pension + £400 rent I only need to draw about £200 from the pot. Then at 66 Sate pension would mean I can manage without drawing at all. This seems sustainable to me taking account inflation and little or no interest. Does that make sense or have I missed something?

bostonerimus

Maybe you could outline your current age, annual income need and annual income sources, when they start and whether they are index linked. The we can see how much you need to draw from your savings. You might also be able to go with a slightly riskier portfolio that will give you the possibility of higher return.

Fretman12

I am a couple of months away from 59 yrs: I can happily live on the £800 pm I draw from the pension plus £400 rental income. Anything above that such as holidays I can cover with savings. As mentioned above at 60 yrs I get 10k lump sum and £300 pm index linked pension from NHS. Then finally a full state pension.
I have a partner who is retired with savings but in P/T return to work, we own our own house and no debts, thanks

xylophone

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

Is your partner already drawing a state pension? If so, did she become eligible before 6/4/16?

Fretman12

I did and I'm eligible for the new full pension and my partner gets the same along with a small NHS pension of around £200.

bostonerimus

So just dealing with you for the moment, you need 14.4k annual income. For this year you'll need to withdraw around 10k from the pension and add that to your rent income to cover expenses. When the NHS pension starts the withdrawal will go down to around 6k a year until the SP starts and then you'll be able to do without any pension pot withdrawals. As rent, NHS pensions and SP are index linked inflation isn't much of a worry. Even at 0% return on the pension pot you should have around 100k when the SP starts. So you can afford to be conservative and you might think about a ultra short term bond fund or you could actually take some risk as you won't need to take income from the pension pot after SP starts. It's up to you, but definitely get rid of that management fee

Fretman12

Appreciate the feedback and that's what I was thinking to find some conservative fund and look after things myself from there. Is it worth going to see another IFA I dont want to deal with the one I have because my original requests were the same as here, also Im not sure I want to set it up alone?

bostonerimus

I can see that you are a bit nervous, but you have a good plan and if you can stick to your projected income you'll be ok. The big platforms will all be happy to help you with the transfer and one of the bond heavy multiasset funds will probably suit your conservative requirements.....ie something like VLS20, although I think you can afford to take on a bit more risk. Remember to keep a cash buffer in case of emergencies.

Apodemus

Not trying to hijack the thread, but what happens later down the line? The OP gets to a point where there is £100k sitting unused but in drawdown in a SIPP from age 60, but i am confused as to whether the upper age limit of 75 then applies? Does the OP need to do some tax planning to avoid taking a very large income in the tax year of the 75th Birthday?

C_Mababejive

I am far from being an expert as some of my utterances on this forum will attest but even i know those fees are a bit more than you need to pay.

You could self manage, find a low cost platform and invest at least some of it in low cost trackers. Seems to me a lot of returns are nibbled away in various charges so keeping charges low seems really important.