(NON FINANCIAL) Retirement plans/ dreams/ discussion.

vulcanrtb

Very good point, ProDave. I use the term 'smoothing' when describing my approach to friends and colleagues. I plan to drawdown 40k a year on retirement then reduce it as various other pensions (one DB then SP) come online so I get a consistent 40k a year forever (in today's terms).

crv1963

That is ProDave what we are planning for one of Mrs CRV pots- to draw it down at the same annual rate as her predicted SP until it is exhausted.

cobson

ProDave wrote: »

Show me an annuity where you can ask it to pay out a higher rate and then reduce when you reach SP age?

You could do this by using part of your pot to buy a fixed-term annuity which ends just as your SP starts, and use the rest to buy a lifetime annuity. This would give more certainty than trying to drawdown at a constant rate and exhaust your pot just as SP kicks in, given market volatility.

Whether the rates you can get would make it worthwhile is another question....

MallyGirl

brrr! I have a fan heater on in my office as the UFH takes a while to make a difference. Just back from a lovely weekend in Edinburgh to show DD the city and let her look at the vet school open day at the uni. The weather was much nicer up there compared to the flooding I have come back to.
From an MSE point of view I am hoping DD doesn't choose Edinburgh or London for uni as both would require rather more contribution from us.

I wish I had warm hols to look forward to but this summer we have Snowdonia with friends and then we looking at the North York Moors in the camper.
I have one tiny DB pension and all the rest is DC, OH only has DC, so we will be smoothing using drawdown from DC plus S&S ISAs to avoid income tax as much as possible.

bluenose1

Ha, me to, just got in from work and put our heating on again, would you believe it's June.
Though no doubt I will be moaning about the heat when we go to Disney, Florida in August as I know from experience it is rather hot and humid. There again we only do the Parks in the morning and chill by the pool from early afternoon so I will be brave and soldier on!!! No matter the weather beats being in work.
Hoping it might be my last Summer in work.

westv

Florida, August?! You must be mad!

bluenose1

westv wrote: »

Florida, August?! You must be mad!

Yes I definitely am. That mad we have been for the last 5 years, though only because of being limited to school holidays. As soon as the youngest has left school we will go at more civilised and cooler times of the year.
Seriously though it isn't that bad, the Americans spare no expense on their air conditioning and I am embarrassingly organised on holiday, so our trips to the Parks are designed to minimise waiting to go on rides. More time at the pool.
Wish we didn't enjoy it so much, this year we are staying at Animal Kingdom and I don't want to think about the cost:o

EnfieldP17

Sorry wrong section. Moderator please move/delete as required.

Hello.
Could anyone please offer advice or hints on the following matter?

I am a pensioner, 67 years old but still fit and active. However, as a result of recent events, I now find myself in the situation that I no longer have any benificiary for my will and nor do I have anyone whom I could ask or trust to act as executor.

Owning my own small house outright and with savings of just over 250K, I am concerned as to what would happen if I were to be taken ill or incapacitated in some way. The money is mainly in fixed bonds and ISA's. Given past examples that I have seen, I am willing to involve a solicitor but not to hand over total control.

Would welcome input from persons who have seen this type of situation before or perhaps, have found themselves in a similar situation.

Thank you, Pete.

lisyloo

You might get more help on a more appropriate board (there is one for wills).

You are talking about 2 things.
Firstly the will. This is relatively simple. Get a will set up and I’d advise through a solicitor. If you do your own you risk it being invalid or unintended consequences so if you want to be sure your wishes will be fulfilled as you ask pay for a solicitor. Write down all your wishes about money and your funeral/ashes and ask the solicitor to be the executor. They will charge of course but that’s the price for peace of mind.
If your wishes are specific then there’s no reason you shouldn’t expect them followed (unless you’ve done something like written out dependents).

The second is lasting power of attorney (LPA) if you do not have capability. There are two types, one for property and finance and one for welfare.
This is more expensive as managing someone’s money is an on going activity rather than a one-off like a will.
However I think the same applies here, you can appoint a professional attorney(s).
You can document all your wishes regarding treatment e.g. when you would like a DNR (do not resuscitate) and you could even choose some residential/nursing homes if you wanted to go that far (believe me some of them are awful). The more specific you are the more likely you’ll be treated as you would have wished,
You obviously need to be mindful of the on-going fees as you could still live 30 years.

Perhaps try the wills board.

Btw - were just having a family discussion about where to put ashes and there is a difference of opinion within the family. Our parents paid for their funeral but didn’t specify, so include that too.

atush

ProDave wrote: »

One reason I favour drawdown, which I don't see discussed very much, is the state pension.

Most of us want to retire long before state pension age. So the reality of that means there will be 2 phases to our retirement, pre SP age, and post SP age.

I don't see a lot of point in having a pension income that suddenly increases at SP age. If you are retired you are retired, so you either need enough pension to live on or you don't.

So my approach is have one of my 3 pension pots in drawdown. The plan is to draw that when I retire at 60 at a rate that means it is exhausted when I reach SP age. So the drawdown pension will end just as SP starts. This gives me pretty much a constant level of income both pre and post SP age.

Show me an annuity where you can ask it to pay out a higher rate and then reduce when you reach SP age?

You could take a TFLS and live on that while buying an annuity with the 75%.

but I also prefer DD and we will draw more heavily before SP and reduce once SP is in payment.