Pension Investment Returns

Spivo46

No, I am not taking any of the tax free lump sum as I would rather the first 25% of my drawdown income each year be tax free. (No point in taking the TFLS unless you have good reason to do so)  The cash remains within my pension wrapper and has been placed into five, four, three, two and one year fixed term deposits with an aggregate interest rate of just under 6%.  This provides my first five years of retirement income without reliance on how my equities are performing.  (They have five or six years to just sit there and do their thing.)  I'll review again towards the end of the five years but at that point I will have a small (circa £3.5K) DB pension kicking in as well as the state pension so all my basic living costs are covered anyway.  The DC pension will be for all the fun things - high days and holidays :-)       

Sounds good. I think the L&G "Fixed short term retirement plan" works on the same principle as your fixed term deposits. All of my money is currently in a pension with RL and a standard fixed term deposit (like yours) wouldn't be suitable for me