Retirement income

TBC15

I’d be very wary of taking the 25% tax free out at the beginning at the moment was my first thought.

After covering the back of a fag packet with numbers I’m reasonably sure if you went with a 4% pa withdrawal from the 2 new pots you would be better off due to paying less tax on the GIA part and the £20000 each you can put away in ISAs.

Down side is once it is done it’s done. The 10% CGT band may not survive for too long. If you kick the bucket before the wife she will only get the pension tax free.

How old is the wife? Is she putting £2880 pa into a SIPP?

Wrighty69

For my state pension I need to contribute one more year for a full pension, I think probably 3k a month income from my pension after tax, will be enough. My wife would get the pot if I died I believe but it would be taxed.

xylophone

My wife would get the pot if I died I believe but it would be taxed.

See

https://www.gov.uk/tax-on-pension-death-benefits

Have you had a Pension Wise appointment?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

Have you checked the options offered by your current pension provider?

Arthurian

https://www.retirementlivingstandards.org.uk/How-to-estimate-likely-RLS-2024.pdf gives a quick and easy table to see roughly how much you need to have saved up to fund a comfortable, moderate, or minimum lifestyle.  For explanations of what is meant by those categories, see the home page at https://www.retirementlivingstandards.org.uk/  The PLSA website has come in for criticism recently for seeming to advise having a daunting amount of savings, but I still like it.  Some people say they would never need to spend that much, but I think a good safety margin for unexpected problems is in order.