Thoughts please.

bouncydog1

Ok - NRD is very soon, but I plan to carry on working for another 8 months.  My current scheme is DB so although I can take pension now, I plan to carry on contributions and benefit from employers contributions and tax relief.  I have 2 other DB schemes that will pay out and also will get almost full OAP.  I also have a Prudential plan that allows me to take an annuity but having seen the value of the plan I reckon my best bet is to transfer to a plan whereby I can drawdown with latest age being 75.  DH also has good pension benefits and we have savings.  My plan shows that income and expenses will allow some saving to continue.  This is not boasting - we are indeed fortunate to be in this position.  Can anyone see any flaws with the above please.  

Marcon

bouncydog1 said:

Ok - NRD is very soon, but I plan to carry on working for another 8 months.  My current scheme is DB so although I can take pension now, I plan to carry on contributions and benefit from employers contributions and tax relief.  I have 2 other DB schemes that will pay out and also will get almost full OAP.  I also have a Prudential plan that allows me to take an annuity but having seen the value of the plan I reckon my best bet is to transfer to a plan whereby I can drawdown with latest age being 75.  DH also has good pension benefits and we have savings.  My plan shows that income and expenses will allow some saving to continue.  This is not boasting - we are indeed fortunate to be in this position.  Can anyone see any flaws with the above please.  

Without knowing what you're trying to achieve, and in the absence of any figures, it's hard to know if there are any flaws in your route to getting there! For example:

bouncydog1 said:

I also have a Prudential plan that allows me to take an annuity but having seen the value of the plan I reckon my best bet is to transfer to a plan whereby I can drawdown with latest age being 75.  

Why does the value of the plan makes you think drawdown is the best bet?

dunstonh

 I also have a Prudential plan that allows me to take an annuity but having seen the value of the plan I reckon my best bet is to transfer to a plan whereby I can drawdown with latest age being 75.

Whilst old fashioned plans stop at 75, modern plans do not.

bouncydog1

Value of the plan is £80k plus and options don’t look very good for annuity - between £2k and £2.5k pa if I take a lump sum.  I thought if it went into a drawdown trust arrangement  (available where I live) then I could put DD as a beneficiary so she would get anything left.  Rules say drawdown can be no later than 75.  Plus as I’m still working I can pay more into it each month.  I can’t pay any more per month into employers pension scheme.

Albermarle

My current scheme is DB so although I can take pension now, I plan to carry on contributions and benefit from employers contributions and tax relief. 

Normally by continuing to being an active DB scheme, the real benefit is by building up more guaranteed pension when you eventually retire. The employer contributions themselves are not directly relevant to how much pension you will get.

You need to carefully check the scheme rules ( if not done so already) about what happens if you continue to work beyond the NRD. Different DB schemes have different rules .

dunstonh

 I thought if it went into a drawdown trust arrangement  (available where I live) then I could put DD as a beneficiary so she would get anything left.  Rules say drawdown can be no later than 75. 

Are you not in the UK?
In the UK, drawdown is not location specific and there are no rules saying you cannot drawdown later than 75.

bostonerimus

I would do a budget to help in your planning. You seem to have good guaranteed income, but you have to see how that aligns with your expected spending. Also are the pensions index linked - inflation can quickly eat away at income and do you have enough cash/other investments to pay for large one off expenses that might disrupt your budget ie a new car, major home repairs etc. I would also check your insurance coverage and make sure it's appropriate for your circumstances and go over wills, trusts and inheritance arrangements.

bouncydog1

Thank you everyone.  I am based offshore and have checked scheme rules for existing DB so am fine with benefits of continuing.  My thoughts of transferring the Pru plan were that I could continue paying into it once retired.  The rules surrounding these plans in my jurisdiction is that drawdown must be no later than age 75 so I was hoping to build up a fund which, if I died before age 75 it would go to my daughter under a permitted trust arrangement that links to the plan.  Under the current plan with Pru I don’t think I can set up a trust so would need the cost of changing my will to ensure she got the benefit.  My DH supports my plans as he will be very well provided for under my current DB scheme.  I will investigate further but your comments have all been very helpful.