Tax & Annuities

kimwp

The gap referred to is when someone retires before they can draw the state pension.

Qyburn

SSTJCKel said:

Am I doing something wrong here ? 

I dontvthink you're doing anything wrong, its just that as you have found your finances are tight for what you want to do.

Have you checked what you'd get for a single life, RPI linked annuity? If you are single and/or you don't have to be concerned about dependents "after you go" then you dont need a guarantee period either.

An inflation linked annuity gives you certainty. If it doesn't give enough then you have to trade that certainty against the possibility (or probability) of getting a better return and accepting a risk of running out.

Some may be happy to risk running out of money at say age 80 or 85, if they think their spending habits may change. Some might take the opposite view, think thst when they're getting on the last thing they want is money worries.

dunstonh

Am I doing something wrong here ? 

You are not doing anything wrong.  It does sound like annuity would probably be better for you given you inability to afford periods of losses.    However, you don't have enough money saved to achieve the income you are looking for.  So, something is going to have to give.    Either continue to work longer to lower your living standards.

SSTJCKel

Thanks all.... This is becoming a lot clearer.