Royal London Assured Managed 1 Fund

crv1963

Sorry if these seem odd questions. We have just received my wife's pension statement, she contracted out of SERPS way back in the 80s, and hasn't contributed to this for years, we had an old -2004- statement saying it was worth 24k, todays statement says it is worth almost 68k which would buy an income of 3k pa in 2027. Her other pension saving is in the NEST auto enrolment(currently 5k), (employer will not pay in more than the legal minimum) so we've been looking to make other pension savings in her name from now until we retire when she is 55- 4 years time. Full SP from age 67. Me DB that will be 16k pa if taken in October possibly a lot more if I work another 3 years, full SP at 67.


I'm hoping that in a couple of months we can start off by saving 500pm, then next year up this to almost the whole of her take home pay of 1400pm.


Questions:-


1) Should we start another pension pot, PP, SIPP or Stakeholder? Then use this to drawdown 55-SPA, keeping just below PA for income tax, when this Royal London one starts at 60 view it as a bonus- but stay below PA?
2) Would (if it is possible) it be worth starting to pay into this RL pension, saving the hassle of opening a new one?
3) Move this RL pot and then add our monthly sums?
4) Would it be wiser to see an IFA to double check our pension planning and run over our figures?


Plan is to be able to draw down an income below the PA annually from 54-67, then use SP as income which along with my DB and SP will meet our needs.

dunstonh

odays statement says it is worth almost 68k which would buy an income of 3k pa in 2027.

Probably more than that given the assumptions used in current projections.

1) Should we start another pension pot, PP, SIPP or Stakeholder? Then use this to drawdown 55-SPA, keeping just below PA for income tax, when this Royal London one starts at 60 view it as a bonus- but stay below PA?

Stakeholders are a niche option nowadays.
The RL pension doesnt need to start at 60. Its just an age they are using on the statement for projections.

2) Would (if it is possible) it be worth starting to pay into this RL pension, saving the hassle of opening a new one?

Probably not possible and may not be the best option. However, it is an option to investigate.

3) Move this RL pot and then add our monthly sums?

Possible.

4) Would it be wiser to see an IFA to double check our pension planning and run over our figures?

Choice is to DIY or use an IFA (not any other option). Like any job in life, if you DIY well, you can save money. If you DIY badly it can cost you more.

Plan is to be able to draw down an income below the PA annually from 54-67, then use SP as income which along with my DB and SP will meet our needs.

And will your spouse be ok if you die first and the income goes down 50%?

crv1963

Thanks dunstonh for the quick reply. I understand that she can draw it from 55 but we aim to save "a pot" which she will draw so we could leave the RL pot until 60 or later. I am confident in my planning but if I go first then I'm not sure that Mrs CRV would be confident to DIY.


We have worked out that if I go first the survivor pension which is 9.5k plus drawing down 8-10k pa from the savings/ pension pots we're planning will be enough to meet her needs until SP starts at 67.


I think it may be wise for us to discuss with an IFA, then they may offer better suggestions, so spending a couple of months planned savings amount may be worth it even for simple peace of mind. As I will be a LRT payer in retirement it is my wife pension I'm concentrating on, as she has very little at the moment and we're hoping to retire when she is 55 and I'm 59.


We'll be mortgage and debt free with 6-12 months outgoings each as savings plus the TFLS from my DB as an emergency lump sum/ big spend pot. If of course everything goes as planned, which is an optimistic view, I know, there's always a curved ball on its' way!


Worse case we'd have to work a bit longer!