£100K Investment for monthly or annual income

Nick9967

Thought this forum more apt than pensions. 
Just looking for some advice, generic perhaps as it probably wont happen for almost 2 years or so.
When I retire in about 2 years i need a top up in annual income, i am downsizing my house at that time and will have at the very minimum £100k cash to stash somewhere.
Its not really important whether i take an income annually or monthly from this but need to maximise that income.
I'm not averse to a little risk but need to be sensible about it.
what can i do other than a bank account with 1%
thanks


 

Prism

What sort of yearly extra income are you after? Around 3-4k as a starter would be a typical target with a balanced level of risk in stocks and shares.

MaxiRobriguez

You don't really have any options of beating 1% unless you put the capital at risk in investments, at which point a whole different discussion emerges about risk tolerance and target gains and non-certainties etc.

Rather than stash the money, could you inject into a DC pension over the next 3 years and gain from the tax top up at least? You could then take a proportion as cash and then leave the rest in a mixed investment portfolio which you could draw down on over time (subject to having those discussions about risk tolerance etc).

Nick9967

My average, requirements are a little up and down through the period, would be about £7-9k pa over 17 years or so - at that point the capital has gone , which is fine as it will hare done its job by then .

I had considered taking downsizing just before i put my main pot into drawn down in order to get the tax relief, i could probably do it over 2 years i think,, then take so me cash as part of 25% of pension take and leave the rest in pension drawdown BUT looking at my figures that just increase the tax i'd be paying overall because id be working part time simultaneously

Dazed_and_C0nfused

Do you have sufficient pensionable earnings to be able to put £100k into a pension over 2 (or even 3) years?