Bridging to DB pensions.

Moonwolf

I've asked questions about bridging before :-
https://forums.moneysavingexpert.com/discussion/6489313/choices-choices#latest

However I have been working on blended options, does this one make sense?

I'm 59 now and will be 60 in December.

I put my postcode and health conditions (cancer although I have been discharged and a history of pulmonary embolism) into the money helper annuity rates calculator and this suggests at 60 an annuity rate of 5% with 50% partner and 3% growth.

This seems pretty good, particularly as
a) I prefer secure income over growth as long as it is enough and
b) My spouse who is 15 years older than me is covered and
c) I don't need to worry about leaving anything for anyone else.
d) I think I'll beat the actuarial odds because despite my health conditions I'm quite fit.

So of my now £360,000 pot I could use say £200,000 to buy a £10k a year annuity and add the £66,000 TFLS to my £50k other savings.  Leaving about £100,000 in my DC pot, to which I will still add £3600 a year, and might not be touched except in emergencies.

Then I could take a 24% actuarial reduction on my 2015 NHS pension (5 years not 7 because I have ERRBO) reducing it from £14,345 pa at 65 to £10,907 at 60. As a minor admin benefit I could apply for all my DB pensions at the same time.  I also get around £10,500 in other DB pensions from 60.

With a little over £100k in savings I'd have more than enough to fill the state pension gap.

That would be my budget matched with fully or partly inflation proofed income and would take me off the investment roller coaster.

pterri

Moonwolf said:

I've asked questions about bridging before :-
https://forums.moneysavingexpert.com/discussion/6489313/choices-choices#latest

However I have been working on blended options, does this one make sense?

I'm 59 now and will be 60 in December.

I put my postcode and health conditions (cancer although I have been discharged and a history of pulmonary embolism) into the money helper annuity rates calculator and this suggests at 60 an annuity rate of 5% with 50% partner and 3% growth.

This seems pretty good, particularly as
a) I prefer secure income over growth as long as it is enough and
b) My spouse who is 15 years older than me is covered and
c) I don't need to worry about leaving anything for anyone else.
d) I think I'll beat the actuarial odds because despite my health conditions I'm quite fit.

So of my now £360,000 pot I could use say £200,000 to buy a £10k a year annuity and add the £66,000 TFLS to my £50k other savings.  Leaving about £100,000 in my DC pot, to which I will still add £3600 a year, and might not be touched except in emergencies.

Then I could take a 24% actuarial reduction on my 2015 NHS pension (5 years not 7 because I have ERRBO) reducing it from £14,345 pa at 65 to £10,907 at 60. As a minor admin benefit I could apply for all my DB pensions at the same time.  I also get around £10,500 in other DB pensions from 60.

With a little over £100k in savings I'd have more than enough to fill the state pension gap.

That would be my budget matched with fully or partly inflation proofed income and would take me off the investment roller coaster.

Anuities have taken a leap because of the orange menace master strategy as well? I’m with you, I’d take a little security over a bit more luxury money (after basics and reasonable fun money taken care off)