We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Fixed Annuity or drawdown

2»

Comments

  • Ok thanks for the responses.
    For clarity, I am being made redundant in June 26, I will be 59.
    My local government will be 22k (no reduction)
    My AVC pot is 100k.
    I want to recieve an income for 5ish years before a couple of smaller pensions kick in before State pension aged 67.
    I was leaning towards a 5 year fixed annuty but the total return over 5 years is £110k, which is taxable.
    Now, I am thinking of going down the ISA route, depending on Wednesdays budget and utilising me and my partners ISA allowance.
    My tax code is 1257K.
    My redundancy pay will be 30k and 14k auto pension lump sum, so i will not need to touch the 100k for a couple of years. 
    My aim is to take home approx 3.2k - 3.3k a month.

    I am a novice to all this stuff but realise the importance of this decesion.
    This forum has been great for opening my eyes to all sorts of Pension scenarios and have learnt so much in the last couple of years by asking questions and reading the threads.
    After i am clear with what i am going to do, I will then approach a FA to see if my calculations are correct or at least along the right path.

    Open to other suggestions

    Thanks again
  • DRS1
    DRS1 Posts: 2,509 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Couple of points
    The tax code of 1257 - does that actually have an L after it?  A K code is quite a different kettle of fish.
    You have had another suggestion up above but don't say anything about it - have you rejected it for some reason?
    You mention the £22k is with no reduction - so presumably that means it is £22k from age 67?  What would it be from age 59.5?  Also you don't mention if there is a tax free lump sum in addition to the £22k.
    I don't know what the smaller pensions will generate but clearly a pension of £22k is not going to give you £3.3k per month.  Have you tried doing some sort of spreadsheet showing income/outgoings?  Personally I would not know where to start but some people on here are very clued up on that sort of thing and could suggest online versions which may help.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.5K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.6K Work, Benefits & Business
  • 602.9K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.