Draw down from Retirement Savings Plan?

longman27

I have £20k in a retirement savings plan managed by L&G, through Tesco. I am retired and already receive two pensions totaling 11k a year so I am not using all my tax allowance. I was going to take the tax free 25% of the 20k and then draw down £150 a month until its all gone, roughly 8 years, thus keeping me at about my maximum allowance. As I am nearly 60 this should take me to state pension age when I will start to pay tax again. L&G charge me £35 a year to 'manage' the fund. Is draw down my best option? I have no mortgage and have savings. I don't really need the money now but wanted to access it the most effective way.

Thanks.

Albermarle

Your plan seems sensible . Only that taking £150 per month will take you over the personal tax allowance , but not by much .

You could consider , putting some of the money back into the L& G Pension ( or a new pension ) to gain tax relief. As a non earner you can pay in £2880 and £720 tax relief would be added. 

£35 for a £20K pension seems low . Maybe that is only the platform/management charge and there is a investment fund charge as well ( which you will not see directly as it comes out of the fund )