My House is my Pension

Catbells

Have lived in my house for 25 years and now kids have grown up and dont need to live here I'm going to be selling it to buy a smaller house/flat. I have worked part time but havent paid into a pension scheme for the last 15 years so I will be totally dependent on the left over money (after new house and mortgage repayments are taken from the sale price). I hope to have about £250,000 for pension purposes. What is the best way to get an annual income from this amount for my pension.

EdInvestor

I suggest you consult an IFA who specialises in investment to draw up a plan for the money taking into account your attitude to risk .Suggest you pay him a fee rather than commission.

A mix of different assets - shares/unit trusts, bonds,cash and commercial property is likely to be best, with the percentages adjusted for risk

Expect an overall return of around 5% income on the capital, ie 12,500 a year - but with a well organised investment strategy, you should be able to avoid tax on most of this.

Presumably you will have the state pension coming along in due course for a topup?

Catbells

Thanks for that. Yes I will be entitled to the minimum state pension I think and I will carry on working part time if I'm lucky - til I drop. What happens to the lump sum when I die. I would of course want to leave it shared, to my children.

*MF*

All of your assets (including the lump sum), less any liabilities, will form part of your estate, and you should see a solicitor and have a will drawn up so that what you wish done is carried out - that will also include having an executor for your estate, someone who makes sure your wishes are carried out.

Hope this helps ...