flexible drawdown

A7andy

I am wondering what a large and small pension pot is ??

dunstonh

All down to the perspective of the individual.

If you earn £10k a year then you will have a different view of small or large compared to someone earning £100k a year.

green_man

There’s some info here you might find useful

https://www.telegraph.co.uk/financial-services/investments/pension-advice/what-is-a-good-pension-pot/

From that article.

. According to analysis by Fidelity International's report, Fidelity International’s Financial Power of Women publushed in July 2018, the average pension pot for a man currently aged between 25-34, putting money into a pension in line with the government’s auto-enrolment contributions, would be worth £142,836 at the State pension age of 68.

So generalising somewhat, a pot of much under £100k at retirement age might be considered small, and maybe £500k+ might be considered large. But as stated above it’s all relative.

AlanP_2

Given title of thread and the question are you asking about the Small Pot aspect of the Money Purchase Annual Allowance OP as opposed to an indication of what a large / small pension pot would be viewed as?

A7andy

AlanP the only reason I said small or large is because I have been looking at what is a reasonable drawdown rate and many quote small and many quote large without an actual figure, I am also trying to understand the effect charges against drawdown , I wanted to take a natural yield but many say no !!! In an ideal world I would like my pension pot to ping on zero the night before I curl my toes up, however we don’t have that luxury. In summary it would be nice to read others views on drawdown rates and how they see the future for themselves.

AlanP_2

A7andy wrote: »

AlanP the only reason I said small or large is because I have been looking at what is a reasonable drawdown rate and many quote small and many quote large without an actual figure, I am also trying to understand the effect charges against drawdown , I wanted to take a natural yield but many say no !!! In an ideal world I would like my pension pot to ping on zero the night before I curl my toes up, however we don’t have that luxury. In summary it would be nice to read others views on drawdown rates and how they see the future for themselves.

I'm not sure the size of the pot has a relationship with a reasonable drawdown rate, without considering age and life expectancy.

If you need to plan for your pension pot lasting 30 years the starting amount doesn't matter. The smaller the pot the less you will have in £ terms but the safe / reasonable rate will be the same.

LHW99

I wanted to take a natural yield but many say no !!!

To some extent that depends on how much you need from your pot, whether you need to leave any capital for a spouse / children and your preferences.
I expect to take natural yield initially, but swap to a combined approach later, and perhaps to an annuity as decrepitude sets in.