Feasibe option to utilise pension funds?

MPPG

Hi

I have a pension fund which is currently at £120,000.

I took 25% previously when 55.

I do not expect to work up until 67 and want to retire around 60 to 62 years old.

I'm type 1 diabetic and most figures sent to me go up to 95 years of age.

Not being funny but on balance I'll never get to 95.

What I am keen on doing is retiring at 62.  Can I draw money from my fund at a set figure of my choosing up until 67 and then when state pension clicks in reduce the money I draw out from my pension and use it only as a way of topping up over my state pension?

I also pay into my current employers pension scheme but they refuse to allow me to transfer that over to the 120k pension pot

Dazed_and_C0nfused

Yes, you may need to change provider to one that allows the flexibility that you want but it should be do able, remembering whatever you have in that fund now is all taxable.

Have you checked your State Pension forecast to see what you have accrued to date (ignore the headline figure) and how stopping work might impact your final entitlement?

Albermarle

What I am keen on doing is retiring at 62.  Can I draw money from my fund at a set figure of my choosing up until 67 and then when state pension clicks in reduce the money I draw out from my pension and use it only as a way of topping up over my state pension?

This is what most people do nowadays, it is called 'Drawdown' . You can take the money as fast or slow as you like but of course if you take too much it will run out quicker.

Here is a useful link - there is a section on taking your pension.

Pensions and retirement | Help with pensions and retirement | MoneyHelper

Also the websites of the two pensions you have will most likely have an explanation of options as well.

You can have a free chat about your pension here ( government paid for ) 

Pension Wise (moneyhelper.org.uk)

I also pay into my current employers pension scheme but they refuse to allow me to transfer that over to the 120k pension pot

Is it the same kind of pension with a pot of money , like the SIPP ? 

MPPG

They just advised me that it creates too much admin for them to do and refuse to transfer iver

Albermarle

MPPG said:

They just advised me that it creates too much admin for them to do and refuse to transfer iver

That is often the case . Anyway once you stop work , I am sure there will be no problem to transfer your workplace pension out to your SIPP , or vice versa.
It is often assumed that a personal SIPP must be better than a workplace pension , but that is not always the case . Often the employer will have negotiated a significant discount ( but not always)

jamesd

Yes, you can do the variable drawing and it's what I usually suggest: take your state pension level from your pot as soon as you start retiring and the balance left over after deducting the cost of that for however many years is what you use to calculate your sustainable for life topup.

I'm wondering how big the pot at the employer is and what savings and rough income you have. That's because I'm wondering how viable it is for you to retire now or whether moving savings into one of your pensions is worthwhile.