What are you aiming for as an annual pension for you?

Anonymous101

justme111 wrote: »

So would not reasonable course of action be to identify a point a year or 2 or 5 or whatever number if years earlier when it is enough rather than plenty

That was exactly my thought when I read that.


If you're thinking you have more than enough money but worried about the time you'll have to enjoy it then redress the balance.

WANNA_BE_MORTGAGE_FREE

We are planning on a combined net income of around £35K. My wife shall retire from her NHS job in 23 months when she reaches 55, I shall then follow at 55, 13 months later.


We shall both take our TFLS to amounting to ca £200K.
My pension pot shall then be used to Draw Down an annual income to combine with the DB pension of my wife, making a total of £35K.


When SPA kicks in, the amount of DD from my pot shall reduce.


Our calculation is based on us both totally finishing work, however there is a chance that we may both do a few hours a week, this shall reduce the amount that needs to be taken from my pot.

Paul_Herring

We shall both take our TFLS to amounting to ca £200K.

Have you got plans for that £200k, or are you just taking it just because you can?

lisyloo

justme111 wrote: »

So would not reasonable course of action be to identify a point a year or 2 or 5 or whatever number if years earlier when it is enough rather than plenty

Difficult if you have longevity in your side I.e. might live into your 90s.
The calcs become less reliable over time e.g. inflation can have a big affect so you can only really estimate a wide range.

Personally I’d rather err on the side of caution/plenty as I fear being cold/poor more than I do working an extra year or 2, but it depends on your health and your work situation. Some people hate their jobs/commute but aren’t in a good position to change in their late 50s or 60s.

It’s a personally decision but you cannot do accurate calcs over 35-40 years when there are unknowns (like inflation for example).

I err towards plenty.
DH errs towards “get me out of here”.
So it’s personal.

westv

Paul_Herring wrote: »

Have you got plans for that £200k, or are you just taking it just because you can?

You could get a decent car with that.

Spreadsheetman

I'm planning at about the £32k point for 2 which will be entirely from DC/Isa/taxable investments for 8 years then a mix of 2xSP and 1xDB after.

BoxerfanUK

Paul_Herring wrote: »

Have you got plans for that £200k, or are you just taking it just because you can?

That's a very good point Paul.

My DW's plan is to retire at the end of April 2022 (age 60) and we are hoping her DC pot will by then be in the region of +/- 400K.

The idea up until recently has always been to take the 25% PCLS but just lately I'm not so sure. I don't envisage that we'll need it for any specific purpose at that point so now starting to think would it be best to just leave it invested in the pension and allow it to continue to (hopefully) grow, just drawing down an as yet undecided figure.

Of course, then the decision has to be made as to what type of draw-down route to go down. Our very rough plan at this stage with our Mortgage paid off next April is;

Me: Age 60 already retired drawing DB pension.

DW: Age 57 retire in 3 years and draw-down to personal allowance, currently 12.5K.

Me: 2025 State pension kicks in, currently £8,767.20 pa

DW: 2028 State pension kicks in, currently £9,174.04 pa and then reduce her draw-down to stay within personal tax allowance.

By that point we should have a combined income (assuming we both survive that long) of around 55K before tax and to be honest I don't know how we'll spend it all let alone having to touch our savings.... but we'll give it a go

My main priority is to ensure her pot lasts as long as possible in case I pop my clogs first. Yes she will still get 50% of my DB index linked and her own state pension but her DC pot will be relied upon for providing the rest, not including savings of course.

Paul_Herring

westv wrote: »

You could get a decent car with that.

A Lamborghini, say?

WANNA_BE_MORTGAGE_FREE

Hi


The £200K is not needed to pay off any mortgage or other loans / credit cards. We have two sons in their early 20's, both are saving for house deposits with help to buy ISA's. We would like to help them with probably £30k each. We also plan to travel the UK and Europe in a Motor Home which shall be around another £30K.
We are doing our long haul holidays now while earning.
The remaining balance shall be a buffer if my pension pot is not keeping pace with our projections.

frugal90

Some massive numbers on here!
We are on 24k net until teachers pensions and state pensions kick in. Drawing down Sipps to bridge gap from now until tp's kick in. Then Sp's further down the line. Total 56k gross when we both reach sp age, in quite a few years time. IS A pot of 300k as security. We stopped when I was 56 and wife 50. Freedom to do what we want,when we want important to us. So far we are spending less than expected and having a ball!life is great!