receiving Db pension

Worried_of_wakefield

with help from this board i have arrived at figures which allows me to instruct my pension administrator to proceed with processing my Db pension

i have asked payment to commence circa my 64th bday in Dec

i have arrived at £19k pension and a £53k LS

i have approx £15k in a sipp all in shares

i have £5k in premium bonds

savings are pretty much exhausted as these allowed early retirement 3 year ago

I need the pension but not the LS

I have used approx £5k of this years tax allowance and will not use anymore until the pension arrives

Question i have is should i instruct my administrator to pay the pension or LS anywhere specific other than my currant account such as my sipp or a new ISA

any ideas on investing the LS appreciated

apologies for lumpy script my right hand is crocked!

AnotherJoe

I would say you need the lump sum if you have no savings, you seem to have cut it down to the wire !
Just get it paid into your bank account, you can send it on to wherever you want from there later.

I suggest a mixture of high interest accounts (where something like Marcus 1.5% counts as "high interest" these days), a high interest saver or two you can get from 3-5% on about £250 a month I think, a fixed rate saver over a year or two (you can get about 2% for 1 year at present) £2880 into a SIPP every year to get £120 free.

dunstonh

Question i have is should i instruct my administrator to pay the pension or LS anywhere specific other than my currant account such as my sipp or a new ISA

If the administrator was to pay to a SIPP or ISA, that would be classed as a third party payment and involves a whole step of hassle. Indeed, it may not be accepted by ISA providers and a pension provider may not be happy with it as they would have to run anti-money laundering checks on the scheme administrator which would be very difficult. if you want it in an ISA or SIPP, then do so after you receive the money.

any ideas on investing the LS appreciated

Insufficient information to go on.

Is taking the lump sum the best option? When is the breakeven point if you were not to take the lump sum but take a higher income? (in most cases, not taking the lump sum is best)

xylophone

the pension or LS anywhere specific other than my currant account such as my sipp or a new ISA

Do you have relevant earnings sufficient to contribute anything above £2880 (net) to a pension?

Had you read the rules around recycling a pension lump sum?

http://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/recycling-of-tax-free-cash/

https://forums.moneysavingexpert.com/discussion/comment/72595646#Comment_72595646 Do you have to take the lump sum?

Worried_of_wakefield

Is taking the lump sum the best option? When is the breakeven point if you were not to take the lump sum but take a higher income? (in most cases, not taking the lump sum is best)[/QUOTE]

i'm working on a 'middle' option crossover point would be age 77, then clearly a larger pension would benefit if i live beyond this age which given my robust health have every reason to believe i will, plus would benefit my 'much' younger wife. back to the spreadsheet?

dunstonh

Have you factored the annual increase into the breakeven point (and the compound nature of the increases)?

Worried_of_wakefield

Have you factored the annual increase into the break even point (and the compound nature of the increases)?

Dunstonh, yes in accordance with scheme rules which, based on an assumed cpi of 3% (max) gives 2.62% compounded. Do you consider a 3% cpi adequate for general purpose 'lifetime' spreadsheets?