Bridging gap between retirement and State/DB Pension - SIPP holdings

Consumer3

It would be great to get to get some ideas please!

As a background: 52, married no kids, no debts, mortgage free. I have been a fairly low earner all my life so I don’t need to fund a lavish lifestyle. Always been a basic rate tax payer currently earning around 28k. Have full state pension.

Lucky to be in an LGPS (LPFA) DB pension, currently due around 7.5k a year at State pension age, not planning on leaving work anytime soon so this will be fine for age 67/8 (age when government makes up its mind). 

Also have Prudential AVCs which due to fees, very low fund choice and no passive funds, only has 2k in it (Prudential International Equity Fund) and I’m not currently contributing. However I do understand this has tax advantages when taken at the time of the LGPS pension.

70k in cash ISA’s, 20k in high interest account (mostly proceeds from selling house in South East and buying elsewhere). I’m very good at moving around it for the best rates, putting into ISA’s since the move. 

Hoping to retire by 58-60 and these savings need to bridge the gap, I’m ok for it to be mostly all drawdown by the time I reach 68. 

I have just transferred an old Aviva workplace DC pension into Interactive Investor, so it’s now sitting in cash at 86.5k. Looking at putting this swiftly to work in the HSBC FTSE All World Index Acc C (higher risk but around 50% of total assets not including house).

Now to the ideas bit…

I want to regularly invest £500 (£625) a month from salary, plus use some of the built up cash to make the most of the SIPP tax wrapper. 

I could continue to add into the HSBC index fund?
Put it into lower risk investments, bonds/gilts?
Restart payments into AVCs? 

Any thoughts please would be much appreciated. Spouse does his own thing with his finances but is also cash heavy. 

Hoenir

Consumer3 said:

I have just transferred an old Aviva workplace DC pension into Interactive Investor, so it’s now sitting in cash at 86.5k. Looking at putting this swiftly to work in the HSBC FTSE All World Index Acc C

With only a 6 year runway. What's plan B.  Equities are long term investments. In the shorter term volatile in nature. 

Consumer3

@Hoenir the thought behind it being that I drawdown off this fund last, so more like 10 - 13 years, but aware it’s a shorter time frame. I haven’t made the investment yet.