Pension provider says I can retire early.

QrizB

MikMikandThriceMik said:
I did not know I could drawdown or get an annuity at my age, some X years before my personal allowance age.

Normal Minimum Pension Age (NMPA, the age when you can first receive pension benefits) is currently 55.

NMPA will rise to 57 in April 2028.

Some pensions/pensioners have a protected pension age of less than this.

QrizB

MikMikandThriceMik said:

So the £15Kpa figure is based on my doing a drawdown or annuity on the current pensions and savings that I put into my lifesight account I guess.

There's a video about Lifesight ageOmeter here:
https://players.brightcove.net/5728959027001/B12A5zfPz_default/index.html?videoId=6228394439001

One of the first things you're asked is details of any other pensions or savings. I would expect the tool to be taking these into account.

MikMikandThriceMik

QrizB said:

MikMikandThriceMik said:

So the £15Kpa figure is based on my doing a drawdown or annuity on the current pensions and savings that I put into my lifesight account I guess.

There's a video about Lifesight ageOmeter here:
https://players.brightcove.net/5728959027001/B12A5zfPz_default/index.html?videoId=6228394439001

One of the first things you're asked is details of any other pensions or savings. I would expect the tool to be taking these into account.

Yes, I put all my pensions and savings into it.
Thank you all for your help and understanding.

TheBanker

I also have a Lifesight pension. For those not familiar, the Ageometer says:

Step 1: Tell us about any savings you have outside of LifeSight
Step 2: Set a target income that's right for you
Step 3: Consider how much you can contribute
Step 4: Think how much investment risk you want to take
Step 5: Choose your preferred retirement option, if you know
Step 6: See a summary of your results.

So you basically tell it what other pensions/savings you have, how much money you need in retirement and how much you plan to contribute in future, and it works out when it thinks you can retire.

It is important to understand that the quoted figures/ages include all pensions you've told it about, not just the Lifesight funds. It's also important to read and understand the long list of assumptions it makes.

My version of Lifesight includes an assumption that I will receive a full state pension at 67. I.e. it is assuming that I draw more of my Lifesight pension in the earlier years, then reduce it in the later years when the state pension kicks in. 

When you say 'Personal Allowance age' do you mean State Pension age?

MikMikandThriceMik

TheBanker said:

I also have a Lifesight pension. For those not familiar, the Ageometer says:

Step 1: Tell us about any savings you have outside of LifeSight
Step 2: Set a target income that's right for you
Step 3: Consider how much you can contribute
Step 4: Think how much investment risk you want to take
Step 5: Choose your preferred retirement option, if you know
Step 6: See a summary of your results.

So you basically tell it what other pensions/savings you have, how much money you need in retirement and how much you plan to contribute in future, and it works out when it thinks you can retire.

It is important to understand that the quoted figures/ages include all pensions you've told it about, not just the Lifesight funds. It's also important to read and understand the long list of assumptions it makes.

My version of Lifesight includes an assumption that I will receive a full state pension at 67. I.e. it is assuming that I draw more of my Lifesight pension in the earlier years, then reduce it in the later years when the state pension kicks in. 

When you say 'Personal Allowance age' do you mean State Pension age?

Yes, spa.

Oh, so the drawdown/annuity must have a hard cutoff date, or at least some of it, so that when the sp comes in, I am still getting the same amount in total pension.... Is that it?

TheBanker

I think the way it works is, if you say you want £25k per year, it assumes Lifesight and your other pensions have to generate £25k a year until you're 67. Then from 67 they only need to generate £14k a year, because the State Pension will kick in and top it up to £25k a year (figures rounded). 

But the really important thing to remember is it's just an estimate, based on assumptions about future investment returns, inflation, and other things. It is absolutely not saying you can take £x at age y. 

xylophone

OP, would you benefit from taking expert advice from an Independent Financial Adviser who would take all your circumstances into account and guide your decisions?

You could try

https://adviserbook.co.uk/

You would tick "confirmed independent" and other specialisms required when the menu comes up.