Retirement at 60, the plan:

magd36

DRS1 said:

magd36 said:

Triumph13 said:

I always prefer to start at the position where both state pensions …

That’s really useful. Thanks.

Not sure what this means? “£9k DB (to get to your £15k total”. I have £15k DB after I’ve taken the lump sum.

We do have a child and have some health issues so wasn’t really looking at annuities.

Thanks

Health issues can be quite handy when looking at annuities.

But obviously annuities are no good if you are thinking of leaving something from the pension to the kid.

And given that you have two lots of DB pension you already have an annuity like income coming your way.

But there are different sorts of annuity including a fixed term annuity which could cover eg the period from retirement to SPA to give you that extra £20k or whatever pa.  And you can structure it so there is a lump sum payable at the end.

Thanks. That’s worth considering. I’ll look in to this further.

squirrelpie

magd36 said:

squirrelpie said:

Does your plan provide for your wife if you die first?

Yes 50% of my DB

I hope you're just leaving out the rest of your plan, because the whole of your DB isn't enough for the two of you and costs are higher for a single person.

magd36

squirrelpie said:

magd36 said:

squirrelpie said:

Does your plan provide for your wife if you die first?

Yes 50% of my DB

I hope you're just leaving out the rest of your plan, because the whole of your DB isn't enough for the two of you and costs are higher for a single person.

Sorry you’ve lost me. What do you mean?

LHW99

magd36 said:

squirrelpie said:

magd36 said:

squirrelpie said:

Does your plan provide for your wife if you die first?

Yes 50% of my DB

I hope you're just leaving out the rest of your plan, because the whole of your DB isn't enough for the two of you and costs are higher for a single person.

Sorry you’ve lost me. What do you mean?

One person's living costs are not usually half of those of a couple - more like 2/3.

Food bills will reduce but eg energy use probably won't. Council tax for a single is 75% of that for a household etc

Triumph13

magd36 said:

Triumph13 said:

magd36 said:

Triumph13 said:

I always prefer to start at the position where both state pensions …

That’s really useful. Thanks.

Not sure what this means? “£9k DB (to get to your £15k total”. I have £15k DB after I’ve taken the lump sum.

We do have a child and have some health issues so wasn’t really looking at annuities.

Thanks

Ah, so your wife's £6k pa DB is on top of the things that you listed in your original post?  Does it come with automatic lump sum as well?

Yes. It comes with a lump sum of 9k min or more if willing to reduce the 6k. I didn’t mean to include her situation other than her SP. I think I misled everyone by mentioning the £36k SIPP idea which was a bit if a red herring. Sorry for the confusion.

In that case, the numbers become £46k post tax from 2 x SP, 2 x DB and 3.5% drawdown on DC1, plus another £3k from ISA drawdown.  Looking good

magd36

LHW99 said:

magd36 said:

squirrelpie said:

magd36 said:

squirrelpie said:

Does your plan provide for your wife if you die first?

Yes 50% of my DB

I hope you're just leaving out the rest of your plan, because the whole of your DB isn't enough for the two of you and costs are higher for a single person.

Sorry you’ve lost me. What do you mean?

One person's living costs are not usually half of those of a couple - more like 2/3.

Food bills will reduce but eg energy use probably won't. Council tax for a single is 75% of that for a household etc

I get that but my wife will get 100% of all Savings, ISA’s and DC pension passed to her as well. If that’s what you meant?

magd36

Triumph13 said:

magd36 said:

Triumph13 said:

magd36 said:

Triumph13 said:

I always prefer to start at the position where both state pensions …

That’s really useful. Thanks.

Not sure what this means? “£9k DB (to get to your £15k total”. I have £15k DB after I’ve taken the lump sum.

We do have a child and have some health issues so wasn’t really looking at annuities.

Thanks

Ah, so your wife's £6k pa DB is on top of the things that you listed in your original post?  Does it come with automatic lump sum as well?

Yes. It comes with a lump sum of 9k min or more if willing to reduce the 6k. I didn’t mean to include her situation other than her SP. I think I misled everyone by mentioning the £36k SIPP idea which was a bit if a red herring. Sorry for the confusion.

In that case, the numbers become £46k post tax from 2 x SP, 2 x DB and 3.5% drawdown on DC1, plus another £3k from ISA drawdown.  Looking good

Thanks all very useful 👍