Guidance needed after Life gave me a kick up the !!!!!.

dacdac

I take your point about about my pot size at 67 and think I can take a more balanced approach and draw more in the earlier years and then make part time work a choice rather than necessity

As much as I would like stop working before 60 I don't think my current pot at £237k is large enough and I feel I probably need another 4 years of work to fund it properly to provide choices.

I have just received info on taking DB 2/3 at 60 instead of 63.

DB2 63 = £9,384 @ 60 = £9,039
DB3 63 = £6,039 @ 60 = £5,109

So I will revisit numbers taking DB @ 60

bolwin1

dacdac wrote: »

I have just received info on taking DB 2/3 at 60 instead of 63.

DB2 63 = £9,384 @ 60 = £9,039
DB3 63 = £6,039 @ 60 = £5,109

So I will revisit numbers taking DB @ 60

Are you sure that figure for DB2 is correct - giving up £345 p.a. for 3 years extra payments, it would take 81 years before you'd be worse off taking that option. It seems too good to be true.

dacdac

Yes that was my first thought but I also requested an estimate for 58 and that was £8,686 so it is defo not a typo but agree it does seem to good to be true.

dacdac

kidmugsy wrote: »

I wouldn't consolidate them. Current protection is £50k per pop, rising to £85k in April. In your shoes I'd prefer to keep them across two or three providers.

There can be, however, limitless protection for some sorts of insurance company products. dunstonh is the chap who understands these things. In your shoes I might decide to pay an IFA for advice, especially as you can get £500 towards the advice paid from your pension pots three times in your life.

Can you tell me more about getting £500 towards advice as I am unaware of this?

Suffolk_lass

I was wondering what you plan to do after you retire that you think £35kpa is what you need to be comfortable?

Given the top up options you have through drawdown and downsizing, I would be looking at what my plans are and whether I can afford to do those things while I am young and fit enough to enjoy them. Especially after a bit of a health warning. For us, we are front-loading the expensive things while we are not suffering from any slow-down chronic health conditions.

I was encouraged by your having requested figures for actuarily reduced pots. Rather than just looking at the cost, also look at what you gain by drawing them early. Especially the ones you think are underfunded or not index-linked. You might also enquire about commutation and reverse commutation options (taking more or less as TFLS/pension income) and rates. In my DB scheme my TFLS is only actuarially reduced by 3% for each year I could take it early, while the income reduction is 5%.

kangoora

dacdac wrote: »

Af

2, Sanity check my high level plan? Is it realistic? Have I missed anything obvious?

.

You appear to have not accounted for pot growth, assuming average returns. After taking 81k TFLS you will have approximately £250k left. Drawing down £15k/year after that will only reduce the pot by £5k/year, assuming 4% withdrawal rate @£10k and by 67 your pension pot could be actually increasing by £5k/year if you only draw £5k at this point.

Assuming overpay of £1k/month plus £35k in offset your mortgage will be well below £50k in 5 years time.

You also talk aout downsizing / re-locating but don't account for the money released from that anywhere in your figures. Depending on how far you are prepared to relocate, in the North East in a nice rural area £300 - £400k will get you a nice 4 (or even 5) bed 'executive' house / 3-4 bed barn conversion etc. Your figures would look a lot different if you had a 'spare' £250k added to them.

I also think you are completely wrong in not including your partners pension in your calculations - unless you plan to leave them Unless it's 'their' money and isn't used for the two of you...........

At SP age you could have £21.5k + £6.5k + £17k PLUS income from DC pensions - thats £45k PLUS DC pension cash (not including any down-sizing/relocating money).

Personally I believe you could finish a lot earlier than you think you can.