Pension drawdown

k6chris

WERDN wrote: »

Currently spend about £3500 per month (excluding debts).

Have you worked out how much you will need / want to spend each month once you are retired? It might go up due to a desire to travel more or down because you don't need a new car every 3 years (for example). You will probably end up with a few numbers - 'bare minimum' - 'comfortable' - 'epic' etc - worth spending some time to work these out. Analysing what you spend your £3,500 a month on at present would be a good place to start. See the "Number" thread for more details.

tacpot12

How long your pension might last depends on whether you transfer it out of the DB pension scheme and what you State Pension entitlements are, and whether your spending will remain reasonably static (save for inflation rises). If you post your state piension entitlements, I could offer an opinion based on the assumption that your spending remains static save for inflation rises.

Reluctantpensioner

A number for you to think about: If you wanted to buy a lifetime pension of £24610 per year you would need £1,051,709 to buy an annuity.
Numbers from: https://www.hl.co.uk/retirement/annuities/best-buy-rates assumptions: Joint life 50%, 3% escalation, no guarantee age 55. (your scheme may be different).

PS: careful of tax on that £60K, It might push you into a ludicrous tax bracket. If it does, look at sacrificing it into a pension (you can get it back next year at basic rate). (or request the start of a tax year).

WERDN

Thank you
Have been told told if taking VR it would be paid in new tax year - VR payment calculation works out at £78K before tax. Thank you

WERDN

Morning
Have checked on GOV site
Mine currently says £136 as of April 2018 and need 6 years to get to £164
My wifes says £154 as of April 2018
Thankyou

mgdavid

All sounds a bit precarious to me. If I were you I'd be looking at working until say, 60 and using the next 5 years to get a tighter grip on your finances. Close examination of outgoings, pay down some debt, start learning about investing, etc etc. Or just working out how to enjoy retirement on that cast-iron gold-plated £32k per annum.


Or could you take the VR and get another job?

atush

WERDN wrote: »

No experience of running an investment portfolio
I would have no other means of income other than to drawdown on £850,000 and house which is worth about £350,000
So i guess £150K downturn would be difficult
Unreduced pension not available until 65, and is estimated at £42K, estimate at 60 is £32K, at 55 is £24K

30K of the 60K is taxable, i suggest putting that into a DC pension.

What is the income per year, and lump sum if you don transfer the 850k?

Do you have a spouse and dependents?

If you are in debt now while working, how will you not fall into debt when retired?