Pension income sequencing

PJM_62

Thanks Swindiff. Wow there's some big numbers in there 😀
But have to admit to being a little confused. I thought the Inv Bldr was just an inv savings pot that I could draw from once I retire and take my DB pension + it's 3x lump sum. I didn't think the DC pot was paid as a pension + lump sum.

At 55, (2 years from now), my USS forecast is for a 6.5k DB pension + 19k lump sum, and a 100k DC pot.
Where does the 20x part come in ?

swindiff

With a pension you can take a tax free lump sum of 25%. Because the USS has a DB and DC part of the pension it's not as simple as having just a DC pot that you can easily calculate 25% for, so there needs to be a way of putting a value to the DB pot.

They do this by multiplying the annual pension by 20 plus the lump sum part of the DB pension. So in your case it would be (20 x £6500) + (3 x £6500). Thats a value for calculating the TFLS of £149500. Add the £100k from the DC pot gives a total pension value of £249500. You could take 25% of this value tax free £62,375. The remainder of the DC pot can be used to increase your annual pension if you wish to do that.

Have you registered for the myuss website. There are some modellers on there which will illustrate quite accurately what your pension and tax free lump sum are likely to be.

PJM_62

Thanks again for all the advice in this thread.
I've used what I've read to come up with a retirement income sequencing plan for my wife and I.
I started a new post for that , detailing my sequencing plan.
I'd really appreciate your thoughts on it.
The post is called "Early retirement. Income Sequencing plan." (not sure if I can link to it from here?)