so the plan now is..............

clive0510

as some of you may know I was a little concerned as to whether i was doing the correct thing with my pension fund. the plan now is to retire at 65 but can not draw state pension till I'm 67. so I will draw on my private pension 18k a yr. then when the state pension kicks in I can reduce my private pension withdrawals accordingly.
I will take my private pension as a draw down rather than annuity as drawdown is more flexible. 
because I have various pensions I have been advised by a IFA to put it all in one big pot, with aviva and save on maintainance and admin charges.I have a company on the  case called Hilltop finance,and they are charged with sorting all this out for me between now and when I retire. so my question is does this sound all good to you?

1813

Also annuities are poor value for money but if it ticks all the boxes there should be no issues. I cannot, for now, see the point of an annuity. Much rather drawdown. Id like the option to transfer my pension.... alas, never going to happe, but maybe thats a good thing.... you just need to ensure that your income needs meet your requirements and as long as they do, no problem. 

clive0510

1813 said:

Also annuities are poor value for money but if it ticks all the boxes there should be no issues. I cannot, for now, see the point of an annuity. Much rather drawdown. Id like the option to transfer my pension.... alas, never going to happe, but maybe thats a good thing.... you just need to ensure that your income needs meet your requirements and as long as they do, no problem. 

Thanks for that. currently my pension pot stands at 175,000. estimated to be 200,000 by the time I retire.(6 yrs). ifa is telling me if I draw 36k over two yrs then reduce it when state pension kicks in, I got enough in the pot to get me to age 82.

1813

Based on this you need to estimate your death age (not nice but necessary) to determine how much you can withdraw safely alongside the state pension. I mean, a considerable sum of money buys a rubbish annuity imo. You need a really big pot to withdraw anything decent, so why would you not draw down? Cannot for now see the logic to an annuity. To me ifa is giving you some iffy advice at best. You may live to 100 for all you know..

garmeg

clive0510 said:

1813 said:

Also annuities are poor value for money but if it ticks all the boxes there should be no issues. I cannot, for now, see the point of an annuity. Much rather drawdown. Id like the option to transfer my pension.... alas, never going to happe, but maybe thats a good thing.... you just need to ensure that your income needs meet your requirements and as long as they do, no problem. 

Thanks for that. currently my pension pot stands at 175,000. estimated to be 200,000 by the time I retire.(6 yrs). ifa is telling me if I draw 36k over two yrs then reduce it when state pension kicks in, I got enough in the pot to get me to age 82.

What are you going to do from age 83?

Genuine question, as you are likely to live beyond this age.

El_Torro

Yeah, having enough money to get you to 82 sounds a bit iffy to me. Assuming you don't have underlying health conditions you could live a lot longer than that. 

It's unlikely that you'll want / be able to get a job at 80 if you get to that age and realise you'll soon have no money left.

clive0510

thanks for the comments. but quite honestly what else is there to do other than what I'm putting in place?

garmeg

clive0510 said:

thanks for the comments. but quite honestly what else is there to do other than what I'm putting in place?

Things to consider ...

Try running the figures but drawing £1k less from your SIPP- what age does that get you?
Can you live on the lower income?

You should look at getting an income up to age 90 really as a minimum.

Could you live on just the state pension after this date?

Do you have any other assets - ISA, savings etc to draw down from as well?

clive0510

i do have other assetts. premium bonds-£20000, gives me a little winner now n then. isas £10,000. shares in m&s- £4000

clive0510

I still think drawdown is the better opotion.

1813

Well if you have 164k at 67 and withdraw around 9k a year, probably a bit more  I estimate you should make it last longer than that. Not sure where the 82 run out of money issue comes from unless i am missing something obvious.