Newbie question!

Starskystattoo

Good evening!

Four and a bit years to us retiring at 67 when SP starts, mortgage ends and I’ll have options on my stakeholder pension, currently standing at around £220k. Not putting much in of late and it’s in low risk mode, picking up around 2% growth PA.

I’m slowly navigating around the myriad of options, opinions, terminologies and helpful information. My initial broad question is this: we’re considering buying an annuity or taking a lump sum (we did take a 25% lump four years ago) and other options. Our (estimated) £25k combined SPs will give us a comfortable lifestyle as over half that income would probably be disposable so wouldn’t it make more sense to just drawdown the exact amount we have to pay for annual holidays and keep the SH pension invested? Would this not minimise any tax paid, or are they pitfalls I’m currently unaware of? TIA

Marcon

Have a look at https://www.moneyhelper.org.uk/en/pensions-and-retirement

Sounds as if a free appointment with PensionWise would be helpful, not least to help you get to grips with the terminology and abbreviations so beloved of the pensions world.