55 and out of work

I have recently been made redundant. At 55 years old and from a niche background it will be difficult to get a role in these market conditions. 
I will have cash assets of c.£200,000 once my payoff is received. I also have a pension pot of £380,000. 
My mortgage is £230,000 on a property valued at £430,000 with a monthly payment of £1495 on a fixed rate until June 2022. The mortgage has 14 years left (I have been overpaying by £1,000 with a view to clearing in 6 years, however that will not be possible now)
I do not have any other debt.
My question is can I create a regular income from my savings and pension?
Would it be worth moving the mortgage to interest only and put the savings into a income paying unit trust?
Should I move my pension to an annuity now or move it to an income based investment? Or should I leave it?
My main concern is that I need an income whilst getting paying work sorted. I am concerned I will fritter away the cash and it is not working for me at the moment. 
I intend to get some independent financial advice but thought it worth asking the forum too?


  • sheslookinhot
    Can you put any amount from payoff over 30k  into a SIPP and benefit from HMRC contribution ? 40% if higher rate tax payer.
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  • Steve182
    Steve182 Posts: 623 Forumite
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    edited 16 February 2021 at 10:58PM
    If you are looking to find re-employment I personally would not change anything and just try to live off savings in the meanwhile.

    Not many people buy annuities with their pension funds these days mainly because they are not seen as good value. At your age and given your plans to find employment I would definitely not consider an annuity.

    Problem with investing your savings to make them work harder for you is that  means risk. Risk is not something you need right now if you are relying on them to provide money to live off.
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • joebob
    joebob Posts: 454 Forumite
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    You can claim contributory JSA for six months about £75 a week 
  • Dingle81
    Dingle81 Posts: 9 Forumite
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    Personally i'd drive as much money into savings (stock market) as possible, sell house for something smaller with smallest deposit you can, keep enough cash for minimal outgoings for a year, job seek like crazy and then hopefully withdraw from investments enough to 'top up' your new salary. However i like a bit of risk/reward, i think when anyone gets to 55 people completely drop their earlier (well performing) methods because they get scared, each to their own, i'm rolling the dice til I die (albiet it a reduced risk more diversified portfolio). Also you say £200k after payoff, is this offered amount or the amount you have calculated after tax? i'd keep £30k and put rest as lump sum into pension pot. You don't have to pay off your mortgage...in most circumstances (and with todays rates) why bother.
  • bluenose1
    bluenose1 Posts: 2,689 Forumite
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    There is a Pension forum on here where you will get  offered more specific advice if you post. I know you want to carry on working but they will  be able to tell you the best way to spend ‘ protect your pension.
    Your cash savings are equivalent of your mortgage so worst case scenario you could use that to pay your mortgage if required, though if interest rate very low it wouldn’t be my option.
    There are implications of taking more than the 25% tax free cash from your pension Pot. For example it means you can only contribute £4K per annum to DC pension or SIPPs in future.
    I assume you are claiming Job Seekers Allowance?

    You can most certainly  create a regular income from your savings and pension. You neee to work out how much you need to live off per year and check what your state pension entitlement will be. 

    Money SPENDING Expert

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