Puzzled. How much will I get???

dunstonh

Audaxer wrote: »

dunstonh, I must be misunderstanding your comment, but if his pension currently is worth £42k, I'm puzzled as to how it would definitely pay out over £2,000 per year without any growth?

If you used drawdown 5% a year, thats over £2000 a year. Whilst I prefer to use 3.5% (to allow for future increases and occassional ad-hoc) you could probably get away with 5% draw rate.

I wasnt talking about annuity yet (although you can get higher than 5% in your mid 60s now).

Either way, the statement projection is way off the mark. And this thread is another example where we see the bad projection assumptions leading to bad outcomes.

Audaxer

dunstonh wrote: »

If you used drawdown 5% a year, thats over £2000 a year. Whilst I prefer to use 3.5% (to allow for future increases and occassional ad-hoc) you could probably get away with 5% draw rate.

That's interesting to know as I would have thought a 5% withdrawal rate was definitely a bit high.

dleafy

Just received my annual statement from Prudential on another “frozen” personal pension which has a current value of £29,335.81.
Should I transfer it it to the Aviva one (or even my current Scottish Widdows one?

dunstonh

dleafy wrote: »

Just received my annual statement from Prudential on another “frozen” personal pension which has a current value of £29,335.81.
Should I transfer it it to the Aviva one (or even my current Scottish Widdows one?

Insufficient info to go on.

its unlikely it is frozen.

dleafy

I guess it's deffered then?
I'm currently signing up to all three online. Done Aviva and Prudential. Just got Scottish widows to do, but have to wait till Monday. Hopefully then I will have a better idea of what I've got and what I'm going to do with it.

Cheers
Davy !!

On-the-coast

Why not just leave them all where they are. They’ll keep on growing in value, and the closer you get to retirement the more valuable they’ll be. You don’t have to worry about transfer fees etc. I think it’s also easier to cash out small pension pots tax free at retirement than single big ones?
How long do *you* (and your loved ones) plan to live?

dleafy

Truth is, I'll probably take a tax free lump out at 55 for a nice holiday and then leave the rest.
I plan to live until I've spent all of my money...lol

badmemory

If you would like to retire at 60, how do you intend to fund the time between then & state pension age? Will the property lets use all your personal allowance or will you be able to take some (other than 25% tax free) that is still within your personal allowance?

dleafy

As well as the pension, we also currently both work full time and plan to have a fair bit of savings. Plus we also make a reasonable amount of £££££’s from craft fayres etc.
I think we’ll be ok.

AnotherJoe

Audaxer wrote: »

Okay thanks, I didn't realise he was talking about an annuity. £2k pa from £42k is 4.76% which is a higher income than I thought you could get from annuities these days.

Stab in the dark at an annuity aged 65 or so. Might not be spot on.