Pension choices ?

_Chris__2

I am currently receiving state pension, but also have 2 personal pension pots that have built up over the years, about £6,000 in both individually. I am currently 69 and could do with the money. 

I'm hearing that it's best to take 25% as a lump sum - is that correct?

I would like to get the maximum income once the 25% has been taken.  How would I do that please?

dunstonh

I'm hearing that it's best to take 25% as a lump sum - is that correct?

In most cases.

I would like to get the maximum income once the 25% has been taken.  How would I do that please?

Realistically, it's unlikely to be worth it with such small values.   You are probably best to take them as a lump sum under the small pots rule rather than get circa £18pm income.

_Chris__2

dunstonh said:

I'm hearing that it's best to take 25% as a lump sum - is that correct?

In most cases.

I would like to get the maximum income once the 25% has been taken.  How would I do that please?

Realistically, it's unlikely to be worth it with such small values.   You are probably best to take them as a lump sum under the small pots rule rather than get circa £18pm income.

Yep, but how do you ensure you get the best annuity with the remainders after the lump sums have been taken?

QrizB

_Chris__2 said:

Yep, but how do you ensure you get the best annuity with the remainders after the lump sums have been taken?

We're suggesting that for the less-than-£10k you'll have left, there's not much point buying an annuity. You might as well just take the taxable cash.

_Chris__2

QrizB said:

_Chris__2 said:

Yep, but how do you ensure you get the best annuity with the remainders after the lump sums have been taken?

We're suggesting that for the less-than-£10k you'll have left, there's not much point buying an annuity. You might as well just take the taxable cash.

What to do with the amounts left over after the lump sums have been taken?  However small they might be.

I do have other pensions coming in.

Sarahspangles

_Chris__2 said:

I am currently receiving state pension, but also have 2 personal pension pots that have built up over the years, about £6,000 in both individually. I am currently 69 and could do with the money. 

I'm hearing that it's best to take 25% as a lump sum - is that correct?

I would like to get the maximum income once the 25% has been taken.  How would I do that please?

Are these pensions which only offer the choice of taking a lump sum, but after that you have to buy an annuity?

People are suggesting that you take them as ‘small pots’ instead. Or you might be able to consolidate them into another pension .

jimjames

_Chris__2 said:

QrizB said:

_Chris__2 said:

Yep, but how do you ensure you get the best annuity with the remainders after the lump sums have been taken?

We're suggesting that for the less-than-£10k you'll have left, there's not much point buying an annuity. You might as well just take the taxable cash.

What to do with the amounts left over after the lump sums have been taken?  However small they might be.

I do have other pensions coming in.

Savings account or investments? For £12k it's not going to make much difference, you could get around £600 per year interest on it. What are you doing with the lump sums, same place could be used for the rest.

DE_612183

_Chris__2 said:

QrizB said:

_Chris__2 said:

Yep, but how do you ensure you get the best annuity with the remainders after the lump sums have been taken?

We're suggesting that for the less-than-£10k you'll have left, there's not much point buying an annuity. You might as well just take the taxable cash.

What to do with the amounts left over after the lump sums have been taken?  However small they might be.

I do have other pensions coming in.

That depends on "how much" your other pensions amount to and how close you'll be to the relevant tax bands.

If you buy an annuity you have a guaranteed value for life.

If you have draw down you can take it when you want.

Both options have growth and both can be taxable depending on your position.

You may be better off taking the "less than 10k" and then putting that into a savings account.

_Chris__2

So, about 12k in total - after taking 25%, that leaves 9k to buy an annuity - any advice on where / how to get that?

DE_612183

you could try legal and general - or you could ask a financial adviser ( but that may cost you a chunk of the 7k ).

teh return you get will depend on a number of circumstances, such as your age, postcode etc.

There are a couple of comparison sites - you could try those

_Chris__2

DE_612183 said:

There are a couple of comparison sites - you could try those

Anyone recommend any?