My retirement journey is about to start

FIREDreamer

Bianchiintenso said:

FIREDreamer said:

saveallmymoney said:

If your withdrawal amounts are enough to live on, your asset amounts look fine to support them. (consider downsizing a backup option later if needed).

The oft quoted 4% rule would indicate a supportable drawdown of just under £16,000 per annum. So £25,000 reducing to £20,000 is a bit punchy?

Bianchiintenso said:

saveallmymoney said:

If your withdrawal amounts are enough to live on, your asset amounts look fine to support them. (consider downsizing a backup option later if needed).

Thanks for that, there's a certain amount of guesswork with withdrawal amounts, as a retirement lifestyle may change our money spending patterns for better or worse.

The 4% rule is for a 30 year retirement. I know you are 65 but your wife is a lot younger so that may be something to think about?

Thanks, I make it £18,400 from the £460,000?

Once wife’s pension kicks in in 10 years and spend naturally reduces with age, mobility etc I think we should be ok, but your right it’s probably tighter than I would like

Sorry I was looking at your pot and ignoring your wife as she is younger so assumed the drawdown of £25k was from your pot only.

Bianchiintenso

That's OK, I had planned to get to a joint £500k a couple of years ago, but will just have to be more careful

Albermarle

I am not planning on taking a Tax Free Lump Sum but withdraw an annual sum £25,000 in first year plus use savings and reduce to £20,000 when SP kicks in with 25% tax free.

This is not 100% clear to me. Are you aware that you can not just take taxable income without taking some of the tax free first or at the same time ? You can not just save the tax free part for later .

Bianchiintenso

Albermarle said:

I am not planning on taking a Tax Free Lump Sum but withdraw an annual sum £25,000 in first year plus use savings and reduce to £20,000 when SP kicks in with 25% tax free.

This is not 100% clear to me. Are you aware that you can not just take taxable income without taking some of the tax free first or at the same time ? You can not just save the tax free part for later .

Sorry, my lazy grammar, the 25% would be on each withdrawal rather than taking it as TFLS

Albermarle

Bianchiintenso said:

Albermarle said:

I am not planning on taking a Tax Free Lump Sum but withdraw an annual sum £25,000 in first year plus use savings and reduce to £20,000 when SP kicks in with 25% tax free.

This is not 100% clear to me. Are you aware that you can not just take taxable income without taking some of the tax free first or at the same time ? You can not just save the tax free part for later .

Sorry, my lazy grammar, the 25% would be on each withdrawal rather than taking it as TFLS

OK then the nest step is to check with your chosen pension provider if they offer this facility. 
They will all offer the possibility of an irregular or lump sum payments consisting of 25% tax free and 75% taxable, a so called UFPLS payment. However only certain providers can do this on a regular monthly basis ( without a lot of paperwork)
Alternatives can be taking one UFPLS a year and putting it in a savings account and taking out money as and when needed. Or taking a larger tax free lump sum and then regular taxable payments, so called flexi access drawdown.

Bianchiintenso

Hmmm, my ideal scenario would be to take a small sum for first monthly payment for tax purposes and then a flexible amount monthly depending on needs, I'm guessing I would have to sell funds and have the cash available to withdraw from my drawdown pot, as you say I'll have check with AJ Bell that I've read the website FAQs correctly and it's possible. 
EDIT : it seems like that will be fine

AJ Bell: Accessing your pension by flexi-access drawdown or pension lump sums No Charge

Bianchiintenso

I have a bit of a quandary in that my Zurich pension is performing a lot better than the AJ Bell SIPP (by a large factor)  so leaving it where it is for as long as possible, seems sensible.

Could I replicate the Zurich holdings in a SIPP (probably not possible)? 

Use drawdown from wifes AJ Bell SIPP and leave Zurich to grow and crystallise when AJ Bell fund depleted? (what tax implications of doing it that way?)

Just use the AJ Bell SIPP until my SP kicks in then crystallise the Zurich

Does the disparity in pension pot sizes between 2 partners could make for tax complications?

Albermarle

Bianchiintenso said:

I have a bit of a quandary in that my Zurich pension is performing a lot better than the AJ Bell SIPP (by a large factor)  so leaving it where it is for as long as possible, seems sensible. It is nothing to do with it being Zurich or AJ Bell, it all depends on how it is invested within the pension.

Could I replicate the Zurich holdings in a SIPP (probably not possible)? Probably not exactly but you could probably get close with a bit of research,

Use drawdown from wifes AJ Bell SIPP and leave Zurich to grow and crystallise when AJ Bell fund depleted? (what tax implications of doing it that way?)

Just use the AJ Bell SIPP until my SP kicks in then crystallise the Zurich

Does the disparity in pension pot sizes between 2 partners could make for tax complications?

You and your wife's tax affairs are separate. So what you do has no effect on her tax position. The main point is to make sure you both use up your max personal allowance each year.

AJ Bell: Accessing your pension by flexi-access drawdown or pension lump sums
No Charge
Just the fact thee is no charge does not mean they can be fully flexible in all things that you might want to do. You need to talk it through with them.

badmemory

Please be careful re the needing less as you get older.  That is not strictly true.  You may need a lot more help, a cleaner & gardener.  Things that you need to get sorted may cost more because of a lack of ability to DIY.  Also whilst your wife is younger & it is true that 2 do not live as cheaply as 1 neither is it true that one can live at half the cost of 2.

Bianchiintenso

Thank you both, all taken onboard🙂