Thoughts on partial annuity with £1M dc pot
I had considered flexible drawdown for my pension only, but a couple of big world events, namely Covid and Ukraine have made me realise that perhaps i should secure some pension with drawdown to cover all bills and food. I see China and Taiwan as a major concern moving forwards.
My monthly requirements are around £1600 .Allowing for income tax and giving some extra headroom to allow for some inflationary effects initially until SP kicks in ,which in turn should then cover quite a few years of inflationary effect(not at current rates!!) means I have rounded this up to £25000. Assuming my expenditure levels drop each decade as i become less active as well should also reduce my monthly requirements.
Quoted annuity rates, 100% spouse , no rpi. are around £100k for £5800 annual pension for me , so i would need to take around £430k from my £1M pot.This would still leave £570k for drawdown .It sounds like a safe option ? What is everyone else doing with a similar pot? Leaving it all in drawdown or securing some income? The RPI option doesn't look value for money so I am discounting that.
Appreciate your thoughts, but know we don't have a crystal ball as that would make it far too easy!
I am shortly to be 58 , in reasonable health and no mortgage if that helps !
★ ★ ★ Meet your Ambassadors
- All Categories
- 338.8K Banking & Borrowing
- 248.6K Reduce Debt & Boost Income
- 447.5K Spending & Discounts
- 230.7K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 171K Life & Family
- 243.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards