How can my £100k pay me £10k a year?

Sexyscorp66

I have £100k from the sale of my parents home.I have no income,as I'm too unwell to work and have too much capital to be eligible for any benefits.
How do I provide an income that I can actually live on?-would £100k In a pension pot give me a good income now? -or would I need to look at an 8ncestment trust?-I don't want to risk losing it-but at the same time I need it to generate me an income to live on.
Any suggestions?

masonic

An income of £10k a year for how long? £100k can easily provide an income of £10k per year for 10 years, perhaps 11 or 12 years without taking any risk. It is not feasible for it to last a whole lot longer than that if you want to guarantee it won't run out in less than 10 years.

You mention putting it in a pension to generate an income now. Are you already over 55 years old?

Sexyscorp66

Let's say for 15 years

Stubod

£100k will give you an income of £10k but only for about 10 years. (Probably more assuming you get some interest).

There is no "safe" savings account that will get you anywhere near 10% annual interest. The best currently available are about 1.5-2 % if you want to take the interest out each month, ie about £2k per year from £100k, and this will not keep pace with inflation.

Longer term you would need to take some risk and go for S&S which "may" give you an overall return of 3 or 4 %...or then again they may not.

There are some "annuity" websites that will give you an indication of a likely return, but I would only assume a couple of grand per year for an investment of £100k depending on whether you opted for inflation increases or dependents allowances once deceased.

kidmugsy

Sexyscorp66 wrote: »

I have £100k from the sale of my parents home.I have no income,as I'm too unwell to work and have too much capital to be eligible for any benefits.
How do I provide an income that I can actually live on? I need it to generate me an income to live on.

It can't be done: you'd have to consume part or all of the capital.

masonic

Sexyscorp66 wrote: »

Let's say for 15 years

If you are able to put it in a pension with tax relief (relying on carry forward of previous years pensions allowance), and you are 55 or older to be able to enter drawdown, then at a push it could last that long. But you'd need to invest in low-medium risk funds and there would be a risk of not meeting that objective. But, this would change your eligibility for benefits, which could make all the difference.

BucksLady

Sexyscorp66 wrote: »

I'm too unwell to work and have too much capital to be eligible for any benefits.

PIP isn't 'means tested' - might be worth taking a look:)


https://www.gov.uk/pip/eligibility

Sexyscorp66

Yes I do claim it,but it's only £212 a month.

choille

Could you buy a letting property?

z1a

Become a loan shark at 100%/week interest.

Lungboy

Sexyscorp66 wrote: »

Yes I do claim it,but it's only £212 a month.

Are you sure that's correct? The lowest PIP amount is £57.30 a week.