A little help

newyo1

I'm 53 and have decided to retire at 55, when do I start to plan / speak to advisors ? I have a final salary pension of £23K pa with a lump sum of £130K and another pension of approx £150K. I try to get my head around all this, Can I use the £150K as a drawdown to top up the 23K pa until Im 67 when I will get the state pension. The other bit i'm trying to get in my head is tax. My wife is 50 and is retiring when i retire, she will be 52, she has a small  pension of approx 50K when she is 55 can she drawdown her pension up to £12500 tax free pa? or Can I donate my tax free sum to the wife to avoid tax and reduce her drawdown ?
So much to consider its blowing my mind, can someone please advise a little.

JohnWinder

Two years is plenty to do some adult learning to get your head around financial planning and taxation matters. You can be the wizard you need to be with a bit of commitment. Maybe ask your local librarian for some guidance with books/other information sources to get you started. May the force be with you.

bostonerimus

First thing is to do a detailed budget, then you will see if it's possible to retire.

Korkyb

newyo1 said:

I'm 53 and have decided to retire at 55, when do I start to plan / speak to advisors ? I have a final salary pension of £23K pa with a lump sum of £130K and another pension of approx £150K. I try to get my head around all this, Can I use the £150K as a drawdown to top up the 23K pa until Im 67 when I will get the state pension. The other bit i'm trying to get in my head is tax. My wife is 50 and is retiring when i retire, she will be 52, she has a small  pension of approx 50K when she is 55 can she drawdown her pension up to £12500 tax free pa? or Can I donate my tax free sum to the wife to avoid tax and reduce her drawdown ?
So much to consider its blowing my mind, can someone please advise a little.

What is your final salary "normal pension age"?

Have you taken into account that if you take it early it will likely be reduced through actuarial reduction.

rothers

newyo1 said:

I'm 53 and have decided to retire at 55, when do I start to plan / speak to advisors ? I have a final salary pension of £23K pa with a lump sum of £130K and another pension of approx £150K. I try to get my head around all this, Can I use the £150K as a drawdown to top up the 23K pa until Im 67 when I will get the state pension. The other bit i'm trying to get in my head is tax. My wife is 50 and is retiring when i retire, she will be 52, she has a small  pension of approx 50K when she is 55 can she drawdown her pension up to £12500 tax free pa? or Can I donate my tax free sum to the wife to avoid tax and reduce her drawdown ?
So much to consider its blowing my mind, can someone please advise a little.

Are you job?

Dazed_and_C0nfused

or Can I donate my tax free sum to the wife to avoid tax

Could you explain how that will save tax?

Audaxer

newyo1 said:

I have a final salary pension of £23K pa with a lump sum of £130K and another pension of approx £150K. I try to get my head around all this, Can I use the £150K as a drawdown to top up the 23K pa until Im 67 when I will get the state pension.
Yes, and beyond as hopefully you will have some of that pension left after SP age. 

The other bit i'm trying to get in my head is tax. My wife is 50 and is retiring when i retire, she will be 52, she has a small  pension of approx 50K when she is 55 can she drawdown her pension up to £12500 tax free pa?
Yes, assuming she has no other taxable income at that time.

See answers above to some of your questions.

You look to be in a good position. If you do some research on here and sites like Monevator about investing your lump sum, you might decide you don't need to see a financial advisor.

I would also check the State Pension forecasts of you and your wife online, as like many of us, you may need to make voluntary NI contributions to get up to the maximum State Pension, as it is definitely worth it. 

dunstonh

I'm 53 and have decided to retire at 55, when do I start to plan / speak to advisors ?

About age 48-50 on that basis.

Can I use the £150K as a drawdown to top up the 23K pa until Im 67 when I will get the state pension.

Yes.   "Funding the gap" is very common.

she has a small  pension of approx 50K when she is 55 can she drawdown her pension up to £12500 tax free pa? 

yes, assuming no other income.

or Can I donate my tax free sum to the wife to avoid tax and reduce her drawdown ?

Accessing your tax free cash may not be the best way based on what you have said (at least no more than is necessary to provide the funding the gap to state pension.     Not sure how you taking it and placing in your wife's name reduces tax. 

xylophone

I'm 53 and have decided to retire at 55, 

You say that you have a DB pension and it seems that you plan to start taking this pension at age 55.

You mention an annual pension of £23,000 and a PCLS of £130,000.

Does your scheme permit you to take this pension  without actuarial reduction at age 55?

Do Scheme Rules require you to take the full PCLS or are you permitted to reduce the PCLS (to zero if required) and increase the annual pension?

You mention a DC pension pot currently valued at £150,000 - you plan to access this pension at age 55 to supplement the DB pension, giving you what you consider to be an adequate income up to state pension age.

Drawing a scheme pension (s) concurrently with DC pension (s) is permitted.

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

My wife is 50 and is retiring when i retire, she will be 52, she has a small  pension of approx 50K when she is 55 can she drawdown her pension up to £12500 tax free pa? 

If this will be her only income then she can draw up to her personal allowance tax free.

Can I donate my tax free sum to the wife to avoid tax and reduce her drawdown ?

The Pension Commencement Lump Sum is tax free when you receive it. 

Giving the money to your wife would incur no tax liability on you.

You say that at the date you plan to retire, your wife will also retire although at age 52 she will be unable to access her pension for another three years.

Is the plan to give your wife the £130,000 in order that she can continue to contribute to her pension (in the amount permitted for a person with no relevant earnings, £2880 net/£3,600 gross)

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100

and place the rest in (for example), savings accounts so that she could take out sums as required to meet your joint needs?

The interest on the accounts (unless in an ISA for example) would be taxable but  if her only income, would likely be tax free by the time she had used her personal allowance, the starting savings rate  and the savings allowance. 

https://www.moneysavingexpert.com/savings/personal-savings-allowance/

Has your wife obtained a state pension forecast? See link above.

newyo1

The figures are with the discounts already removed for retiring early. so they have estimated my pension when im 55.
I have obtained my state pension online its says i will get the max. 
I didnt realise we could still input into my wifes pension when she stops work something we will have a look at.
Yeah plan was to invest tax free lump and use it whatever i need it.
The wife has obtained a state pension forecast and i think she will be 3 years short of the 35yrs 
thanks for the help

QrizB

newyo1 said:

I have obtained my state pension online its says i will get the max.

Is that "the max" based on contributions already paid, or do you still need more years?