Indecisive and overly cautious?

pterri

Phossy said:

I'd note that you will be a higher rate tax payer at SPA if you take your full DB at 60; taking it earlier and/ or taking a lump sum will give you headroom on withdrawals from the SIPP.

Yep, unless the thresholds move wildly upwards which is not likely. I can take a higher DB at 60, reducing at SPA to play with that. Something to think about. 

Secret2ndAccount

You can retire tomorrow, get the Ferrari and the teeth, and still have more than 24k for the rest of your life!  Why have you not retired?
Yes, take the DB early. 35k/yr @57, less tax = 30k/yr. So the SIPP and ISA are only needed for treats and emergencies. When SP kicks in you will have money coming out of your ears.
Are you sure you only need 24k?

pterri

Secret2ndAccount said:

You can retire tomorrow, get the Ferrari and the teeth, and still have more than 24k for the rest of your life!  Why have you not retired?
Yes, take the DB early. 35k/yr @57, less tax = 30k/yr. So the SIPP and ISA are only needed for treats and emergencies. When SP kicks in you will have money coming out of your ears.
Are you sure you only need 24k?

Yeah, the 24k is just basic spend, I’ll be taking more. 

DT2001

If you want, go as soon as you can. I agree with others that you should take your DB now assuming 12/13% reduction in amount at 60. Then take your SIPP up to the start of the higher rate tax band (after any GIA income). As you say drip your 25% TFLS into ISAs. If tax thresholds are frozen/increase less than inflation you are ahead of the game. Even if you spend all your SIPP money (from 57 to 67) at SPA you will have guaranteed income of nigh on £50k and ISAs with a very healthy balance. 

pterri

DT2001 said:

If you want, go as soon as you can. I agree with others that you should take your DB now assuming 12/13% reduction in amount at 60. Then take your SIPP up to the start of the higher rate tax band (after any GIA income). As you say drip your 25% TFLS into ISAs. If tax thresholds are frozen/increase less than inflation you are ahead of the game. Even if you spend all your SIPP money (from 57 to 67) at SPA you will have guaranteed income of nigh on £50k and ISAs with a very healthy balance. 

If I do it (it’s looking very likely) I won’t decide on t(e DB immediately. I’ll jack in work and have some time to really mull it over without having work stuff on my mind. (Thanks)

QrizB

This is a detail and doesn't affect any of the suggestions you've already had.

When you say you'll get a full State Pension, is that based on NI you've already paid? Or do you need more years between now and age 67?

Apologies if you've answered this in a different thread already.

NoMore

pterri said:

DT2001 said:

If you want, go as soon as you can. I agree with others that you should take your DB now assuming 12/13% reduction in amount at 60. Then take your SIPP up to the start of the higher rate tax band (after any GIA income). As you say drip your 25% TFLS into ISAs. If tax thresholds are frozen/increase less than inflation you are ahead of the game. Even if you spend all your SIPP money (from 57 to 67) at SPA you will have guaranteed income of nigh on £50k and ISAs with a very healthy balance. 

If I do it (it’s looking very likely) I won’t decide on t(e DB immediately. I’ll jack in work and have some time to really mull it over without having work stuff on my mind. (Thanks)

A deferred pension can have different early retirement factors to an active one. So investigate the affect of that before making that decision. 

pterri

QrizB said:

This is a detail and doesn't affect any of the suggestions you've already had.

When you say you'll get a full State Pension, is that based on NI you've already paid? Or do you need more years between now and age 67?

Apologies if you've answered this in a different thread already.

Nope, maxed out plus one year so all good

bjorn_toby_wilde

NoMore said:

pterri said:

DT2001 said:

If you want, go as soon as you can. I agree with others that you should take your DB now assuming 12/13% reduction in amount at 60. Then take your SIPP up to the start of the higher rate tax band (after any GIA income). As you say drip your 25% TFLS into ISAs. If tax thresholds are frozen/increase less than inflation you are ahead of the game. Even if you spend all your SIPP money (from 57 to 67) at SPA you will have guaranteed income of nigh on £50k and ISAs with a very healthy balance. 

If I do it (it’s looking very likely) I won’t decide on t(e DB immediately. I’ll jack in work and have some time to really mull it over without having work stuff on my mind. (Thanks)

A deferred pension can have different early retirement factors to an active one. So investigate the affect of that before making that decision. 

It may also be worth investigating if PIE is possible. One of my DBs had that option and it could be very useful if you’d like more money early in your retirement but will be a higher rate tax payer later.

pterri

bjorn_toby_wilde said:

NoMore said:

pterri said:

DT2001 said:

If you want, go as soon as you can. I agree with others that you should take your DB now assuming 12/13% reduction in amount at 60. Then take your SIPP up to the start of the higher rate tax band (after any GIA income). As you say drip your 25% TFLS into ISAs. If tax thresholds are frozen/increase less than inflation you are ahead of the game. Even if you spend all your SIPP money (from 57 to 67) at SPA you will have guaranteed income of nigh on £50k and ISAs with a very healthy balance. 

If I do it (it’s looking very likely) I won’t decide on t(e DB immediately. I’ll jack in work and have some time to really mull it over without having work stuff on my mind. (Thanks)

A deferred pension can have different early retirement factors to an active one. So investigate the affect of that before making that decision. 

It may also be worth investigating if PIE is possible. One of my DBs had that option and it could be very useful if you’d like more money early in your retirement but will be a higher rate tax payer later.

That’s where they pay more before SPA then a little less at SPA so evening out the income? If so yes they offer that. It’s another useful option.