How Are You Funding Gap from Retirement to State Pension?

westv

Just wondering what other people might be doing.


Keeping a separate pot and taking it from there?
Just part of the overall withdrawal percentage from total pot and not separate?
Not including it?
other?

Dox

Lots of previous threads on this board about just this - have a look back and see what's already been said.

bostonerimus

I have a rental property that produces $1600/month and used some of my DC pension pot to take advantage of a one time opportunity to buy into my employers DB plan just before I retired and that pension is now another $1700/month...that was essentially like buying an annuity to cover my basic living costs. I also have a part time job and save all the wages from that. I'll take the UK SP in about 10 years and will probably invest that aggressively for my heirs.

Stubod

combination of
...a (very) part time job
...savings pot built up for the purpose over the last few years of "proper" work
...rent from half share in a rental property
...maxed out premium bonds

AnotherJoe

Bits and pieces of everything except employment, BTL income and annuities.

Mnd

I'm sending my wife out to work! She will use her DC Pension

westv

Dox wrote: »

Lots of previous threads on this board about just this - have a look back and see what's already been said.

Referrìng to the specific point of funding £8,500 a year (or whatever the figure is now)?

enthusiasticsaver

Combination of ways.

At present we are living off our DB pensions which we took early and the remainder of the tax free lump sums we did not invest. We also have a monthly income from some income funds we have which I invested in after selling a property a year or so ago.

Next year I have a second GMP which will pay out. DH has a DC pension and I have a SIPP so we may opt to draw from those next before our state pension kicks in and pushes us up a tax bracket. At the moment I pay no tax and DH pays basic. Once his DB pension and state pension are being paid though he gets very close to higher rate tax so I think he needs to draw on that DC pension over 4 years prior to state pension to keep to basic tax.

Last resort is our stocks and shares isas but I am confident we wont' need to draw on them.

mgdavid

westv wrote: »

Referrìng to the specific point of funding £8,500 a year (or whatever the figure is now)?

As you will see from the other replies, virtually everyone is different. As you've given no information about your own age, pensions, savings and investments it's impossible to say what might be possible for you.
ETA also important to know when you propose to take SP, as soon as eligible or deferring for the 5%?

westv

Just to clarify, I'm talking about specific funding for income to replace SP until qualifying, not overall income.

Paul_Herring

retirement -> 55 - savings outside of pensions (P2P/ISAs/Premium bonds (drawing down, not hoping for a win!))
55 -> 67 - personal pensions
67+ - whatever's left from the previous two, plus state pension.

Part time work may figure into there somewhere.