Pension Drawdowns

kevgreen36

Hi not sure what I am going to do, I have reached 55 have a pension pot of 100k. Should I consider pension drawdown, I am not getting good returns on my pension at the moment. I was thinking of taking the 25 per cent tax free and putting the rest in a drawdown fund. Any suggestions

MallyGirl

what is the pension invested in?
you aren't just looking at last year are you are everything went down in 2018?
are you planning to retire now?
is this your only pension?
if you take anything beyond the tax free 25% then you are limited to £4k contributions for the rest of your life

MallyGirl

I will delete your similar thread in the stoozing board as that is the wrong place for it.

kevgreen36

Thanks for the reply not looking to retire, but work less and earn less. I do have a pension of about £13k at the moment. Now will be self employed so not putting much into my pension Pot.

mgdavid

you appear to have low pension provision given you should live another 30 years and maybe 40 ! I'd keep working and building savings and pension, and leave this one alone to grow some more.

jamesd

kevgreen36 wrote: »

have a pension pot of 100k. Should I consider pension drawdown, I am not getting good returns on my pension at the moment. I was thinking of taking the 25 per cent tax free and putting the rest in a drawdown fund. Any suggestions

It's not being in a pension that produces the performance, it's the investments. So what investments are you using in the pension, how would you change them outside and can you make the same changes inside this pension?

It's been a fairly mediocre year or two for the investments you're most likely to be using.

When you reach state pension age you'll probably get 8.5k state pension on top of the 13k. Is 20.5k a year OK?

A 100k pot could be used to do one of these things:

1. add around 4k a year from state pension age for life
2. add around 7k a year from now until state pension age with almost nothing left at state pension age but more level spending from now until death
3. add around £3k a year from now until death
4. do some topping up to say 20k a year in years when our self-employment income isn't high enough. Probably leaves some left over to increase your income after state pension age

Do any of those interest you?

Mnd

MallyGirl wrote: »

if you take anything beyond the tax free 25% then you are limited to £4k contributions for the rest of your life

Just to clarify, this is an annual allowance, not just £4k for the rest of your life

atush

kevgreen36 wrote: »

Thanks for the reply not looking to retire, but work less and earn less. I do have a pension of about £13k at the moment. Now will be self employed so not putting much into my pension Pot.

This money is for when you arent working, and you are working now. Leave it to grow, no point in taking the TFLS unless you need it.