True Potential - good idea or not?

jamesd

Madeinireland wrote: »

le of market this time) next week. Unless he tells me otherwise I’m more inclined to stick with the DB pension option and work with the IFA to get my other assets (including the sizeable lump sum) into the best possible shape and have the £30k DB scheme as a solid floor.

Looking at that, long term between you, you'd have 30 + 168.60*52*2 + 8k = £55,534 of guaranteed and inflation linked income.

The tax free lump sum and other capital of 200 + 100 + 220 = £520,000 could produce an initial 5%, so another 26,000. That's ignoring the 90k pension lump sum.

So long term around £79,534.

But you're not yet at state pension age so you'd perhaps really want to draw more on the capital to start on at least the £55,534 now. Loosely, £30k DB leaves you with 25.5k to cover for 9 years, costing 9*25.5k = 229.5k. 520k - 229.5k = 290.5k. G-K on that for 40 years would be 14.5k.

So crudely, around £55,534 + £14,500 = £70,034 a year immediately.

Blanchett's wok on drawdown success rates could suggest using as low as 25% success rate but even 50% would increase the 14.5k to about 23.2k, taking you to £78,734 starting. 50% success rate meaning having to cut more in about half of the historic outcomes.

That's a pretty good position.

Given your life expectancy thoughts and hence likely early income preference it implies that you might choose to go with £80k a year intending to use most of the capital and take reductions later. People tend not to like drawing on their capital rapidly, though...

Madeinireland

I will be seeing an IFA ( by that I mean a real IFA not restricted) next Friday - appointment already setup.

Yes the person I saw so far was a restricted FA.

Thanks...