does my pension plan have any flaws ?

kidmugsy

lilactime1936 wrote: »

its just that my plan seems the most simple way to do things.

Nah, the plan I described is just as simple and avoids income tax altogether. You might be very glad of that when you're older.

Audaxer

lilactime1936 wrote: »

at 63 i will have approx 150000 in a personal pension

Presumably that is a forecast that assumes a certain percentage of growth in your investments each year, but if there is an equity crash within the next 7 years that figure could be significantly reduced if you hold a high percentage of equities.

at 67 state pension kicks in i start drawing down on personal pension .

Have you checked your SP forecast to see if you need to make any voluntary contributions to get to the maximum weekly amount? It is worth checking as many people just assume they will be entitled to the maximum available. If you find you are not on the maximum it is usually worthwhile making voluntary contributions to get you to the maximum.

bostonerimus

lilactime1936 wrote: »

well by the time im 63 i will have only bills to pay £12000 per year is enough to live on with the savings and any inheritance i will get . iam fit and healthy but as you know anything can happen . ive not really looked into professional advice its just that my plan seems the most simple way to do things . nearer the date i may seek advice . and of course my pensions may be worth more or less .

You need to do a detailed budget. Then you need to project that into the future with a contingency for emergencies/changes and a range of inflation rates. You also need to use a range of investment returns ie use the historical average return for your asset allocation and maybe +/-2 or 3 times the standard deviation to see the best and worst cases for your ending pension pot.

Your plan is solid if your future income projected using a high inflation rate can be produced from your investments using the worst case investment return.

lilactime1936

another quick question . if i take the workplace pension in two lump sums for 2 years wiping it out and paying little tax . can i then take the 25% tax free out of my personal pension ?

Brynsam

lilactime1936 wrote: »

another quick question . if i take the workplace pension in two lump sums for 2 years wiping it out and paying little tax . can i then take the 25% tax free out of my personal pension ?

Check if your workplace pension can be taken as you suggest.

You can take your 25% tax free from your personal pension at any age from 55 - but again, check if it supports drawdown if that's what you want.