Looking to retire early….not a huge pot?

Albermarle

crv1963 said:

chalkybar said:

Again, thanks for all the info, etc……I hadn’t even looked at a SIPP. I’d always thought they were for people with a lot of funds and needed to be set up at least 20-30 years prior to retirement. 

Is it really possible that I could open one now….this late in the game?   Any suggestions for where to look at, or at least what not to go for please.?

a question please, sorry, probably showing my ignorance….but as far as my db stating an £8k salary (from age 60?) does that mean I could start taking that at any time….or does it benefit me in any way to leave that for as long as possible. I thought that leaving any retirement funds for as long as possible is always the best option. If so, come next year is it better to take this £8k year, when I stop work, and just top up with a bit of cash savings as need be, and invest any remaining savings?
Apologies for all the Qs, but this is such a minefield, and not having unlimited funds I want to make sure to do the right thing….or at least not go head first down the wrong path.
would it benefit me to see a recommended adviser…..I did look into this a few years ago, but the general consensus seems to be that they’re generally not interested in those with limited funds.

SIPPs aren't just for folk with lots of money. Yes it is possible to open one and get the tax benefits. You can open one with £100 , or maybe even less.

I suggest- contact the DB pension people find out when this is accessible with no reductions and how much it pays and if there is any tax free lump sum with it. If this is payable now without reduction then take it. If this pushes you to HR tax then saving from earnings into SIPP mitigates this through the tax relief system up to the point you retire.
All DB schemes have different rules, so you need to check the scheme rules/booklet, to get the definitive answer about the withdrawal timings. 

I would do as SVas suggested and move savings to SIPP, indeed this is something my wife is doing as she gets 1.5% on savings whereas she will get the 25% uplift in her SIPP. £10000 becomes £12500 and repeat next financial year, as long as you earn enough for the contribution made.

I would also seriously consider marriage if you and your partner want this, this way each can inherit the others property/ pension without IT, also your then wife may be entitled to a Survivors Pension from your DB Pension but you need to check first. If you intend to stay together it would potentially save a lot of future hassle and money to get married. 

We worked out how much we estimate we need in retirement, looked at what we had saved in various places and then how we could increase the sums saved and for us SIPP was a no brainer. We also looked at when we wanted to go. Also we looked at what we want to do in retirement and made some significant alterations to our home- loft conversion to create a hobby room for my wife, getting a Rhino greenhouse and doing garden alterations for me. This was helped by still being in employment as costs are always more then estimated!

I can't suggest where or who to go for your SIPP, I would ask either on this thread or start a new thread for this specific topic. I can only say we use Hargreaves Lansdown and are happy with the ease of website and the telephone service when we contact them. I don't know if they are better than anyone else or worse just they suited what we wanted at the time we opened our SIPPs.
It is more important what investment(s) you choose within a SIPP, than who the actual SIPP provider is. Although charging structures for some are more geared towards smaller investors, and some towards larger ones.
For smaller amounts, HL are one possibility, also Fidelity and AJ Bell or Vanguard. Have a look at their websites.

Good luck and it isn't as complex as some might think but it does make my wifes eyes glaze over!

OP.
The comments above are good, but I have added a couple of my own.