Most tax efficient way to withdraw money from all pensions pots

singhini

Yes i'm all good with state pension. When this tax year finishes in a few months time (2024/2025 year) i will have made my last contributing year. 

I'm so desperate to get to 6th April coz i suspect the government will increase the number of years needed and may well increase retirement age to 70

DRS1

singhini said:

Yes i'm all good with state pension. When this tax year finishes in a few months time (2024/2025 year) i will have made my last contributing year. 

I'm so desperate to get to 6th April coz i suspect the government will increase the number of years needed and may well increase retirement age to 70

Well done.
You may be right about 70 but I suspect if they do it they will phase it in over a decade or so.

MallyGirl

singhini said:

@MallyGirl i like your thinking

It must just be me, but IMHO that's 3 examples of rubbish DB pensions..... one paying £2k, another paying £3k and mine paying £4.5k 
Doesn't sound very impressive. 

EDIT:  In 15ish years time £4.5k wont get you a loaf of bread   Just remembered its index linked pension Doh! 

Heyho, i will stop my moaning 

Mine is from my first job and I was under 25 (the min age to join the DB pension) for most of it. All better than nothing. Added to SP that is a guaranteed £15k a year as a base to build upon.

Hoenir

You haven't said where your DC pots are invested. Be prepared for volatility in the years ahead. The reasoning behind having the reassurance of a guaranteed income for life. May well become more apparent. 

QrizB

singhini said:

Hoenir said:

singhini said:

The info i have from 2017 suggested the CETV was £108,000 and the annual pension was £4,500 (that just feels rubbish........

Times have changed somewhat since then. Worthless basing important decisions on outdated information. That is rubbish. Obtain another CETV. Suspect that you are for a major shock. 
Worth also checking what guarantees,  if any, your DB pension will benefit from when in payment. 

Emailed them last night (apparently it can take a few months for the info to be sent to me). knowdoubt i will be back for further help. 

I wouldn't be at all surprised if your CETV is now something like £60-70k.

See the chart here, for someone with a £10k pa pension (yours is a bit less than half):
https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/

LHW99

If you get a full NSP (you should have time to reach it), that in current money is almost £11,500. Plus the £4500 makes a minimum of £16000 guaranteed index linked income per year.

That means you have already (more or less) secured that amount, and any additional DC pensions will add to the income you receive / or you could use the DC + savings to let you retire one or more years earlier than SPA.

singhini

@QrizB Thats quite some drop (about 1/3rd)
@Hoenir "the reassurance of a guaranteed income for life. May well become more apparent." It just has (this thread)
@LHW99 "retire one or more years earlier than SPA"  I'm throwing the towel in April this year i.e. once i've done my last years worth of state pension contributions. I can't hack it no more (aswell as mum died aged 66, dad was 67 and sister was 45. Long life just doesn't run in my family).

 As its just me, i can always keep downsizing my house if i need money (well that's my thinking). 

Everyone: i will be back with questions once i hear back from my DB pension people

phlebas192

singhini said:

@molerat i emailed the pension company last night to get the latest figures.
The info i have from 2017 suggested the CETV was £108,000 and the annual pension was £4,500 (that just feels rubbish........ i'm just human and all i see is £4,500 a year versus have £108,000 to basically go away i.e. transfer it out to say a SIPP..... atleast i could then drawdown the money in chunks. However the obstacle is getting a financial advisor to agree this........ and i ain't paying for the advise

If the transfer value is more than £30k (I think) and yours will be even today, then you won't be allowed to transfer a DB to a SIPP without first obtaining - at your cost - professional advice. This advice will almost certainly be that you should not transfer it. Whilst the annual amount feels poor to you, the guaranteed nature of it (including at least some inflation uplift each year) means that it would take exceptional circumstances for it not to be considered a good deal.

On the plus side, knowing that you will have a guaranteed income of both the DB pension and the SP will make your life easier in the future!

molerat

singhini said:

@QrizB Thats quite some drop (about 1/3rd)

I think they could be a bit overoptimistic on that new lower amount !

penners324

Can you live on £11k a year though? All bills, food and cat food won't leave much to do anything else