Taking an annuity with only part of a DC pot

Moonwolf

If I want to use about half my DC pot to buy an annuity, and use HL or an IFA, will they do all the paperwork for me? Do they communicate with Standard Life and does the remainder just stay where it is? Is there anything special I need to do when using part of my pot?

Detail below but I don’t think it is needed for the answer.

I will be 60 later this year, I have already retired and have been taking £3k a month from my DC pot flexible drawdown (UFPLS style so £750 tax free and the rest at 20% after my personal allowance.

I’ve run the numbers and changed my plan slightly.

Originally I was just going to drawdown adjusting down when each DB pension kicked in.

I’m pretty sure now I will take all 3 of my DB pensions at 60, two when they mature and one 5 years early with an actuarial adjustment. This will give me £21k a year guaranteed index linked income. £5k is capped at 5%, the rest is uncapped CPI.

My DC pot is currently £385,000.

I’m thinking of using £150,000 to buy an annuity. I should be able to get just over £7,000 joint life 50%, 3% growth with my postcode, health conditions and a partner who is 15 years older. I accept a flat 3% growth is a risk if inflation goes up but as my DB pensions are CPI and more than enough to live on it doesn’t seem a huge risk.

Then I would take the £50k tax free lump sum the £150k implies plus an NHS 1995 scheme cash lump sum and use £800 a month to mirror the state pension until it kicks in at 67 - I qualify for the full new state pension.

The remaining £185k, my partner might need if I die early but I would draw down a little extra, up to £500 a month if necessary. It is basically my flexibility.

Secret2ndAccount

Have a read of my thread:
https://forums.moneysavingexpert.com/discussion/6616100/my-annuity-purchase
If you use Retirement line, they will basically do it all for you. They will disucss it with you over the phone, send you half-completed forms, and request the partial transfer for you. You will need to deal with your existing provider so that they know how to fund the cash to pay for the annuity.
It isn't difficult.

Moonwolf

Secret2ndAccount said:

Have a read of my thread:
https://forums.moneysavingexpert.com/discussion/6616100/my-annuity-purchase
If you use Retirement line, they will basically do it all for you. They will disucss it with you over the phone, send you half-completed forms, and request the partial transfer for you. You will need to deal with your existing provider so that they know how to fund the cash to pay for the annuity.
It isn't difficult.

I must have seen it as it was showing as read, it is useful, thank you