Investing £65k for income?

Audaxer

LeadFarmer wrote: »

Sorry I should have explained better, I realise that drawing £6k each year will eventually deplete the investment completely over the 10 years I'd want to be drawing from it. But by then I will be receiving my pension.

Fair enough, but bear in mind if there is an equity crash within the next 5 years your £65k could be worth a lot less, so it could be depleted in less than 10 years. If it was me and if I needed to start drawing £6k per year in 5 years time, I would put it in the highest interest earning savings accounts, or put at least a good percentage of it in savings rather than investments. However if you were able to invest it for the full 15 years to retirement before you start drawing on it, then you would be able to supplement your pension with additional income. Just some choices maybe worth considering.

xylophone

a redundancy package of £65k

Of which only £30,000 will be tax free - the balance is regarded as income in the year of receipt.

It might be an idea to make a pension investment with a view to drawdown at 55?