Aged 49 and having to stop work. Need advice on savings to 55 and drawing DC, DB pension
saaya2020
Posts: 127 Forumite
I really need your advice on this :
My brother is 49.5yrs and he is going blind due to macular retina damage. He says it is due to staring at a computer screen for last 25 years in his job.
He says he will have to stop working from February 2020 as he unable to work anymore. Finance details:
He has 3 DC pensions with a total value of £340K.
He has a DB pension with a value £11K at 65 years old.
He has savings in his bank £170K.
This is his retirement plan:
1. He told me was that he would use his half his savings £90K to get him to 55 years old which is £1500 per month (leaving 80K savings left).
2. Then he would take his DC pension from age 55.
He says he wants to draw it down £1500 per month. (for 20 years?).
3. Then from 65, his DB would kick in, so he gets £918 per month.
4. Then from 67, he gets his state pension (with 30 years NI) so approx £700 per month. He would also still have that £80K left.
This is his plan. Do you think its ok?, or could it be improved?
His main concern is for next 5 years, from now to age 55 and how he will survive. He has 4 young kids as well.
I would be really grateful for your advise on this retirement plan? He did ok in life but this blindness has broken him. It's worrying times. Many thanks for any help. Really Appreciated.
My brother is 49.5yrs and he is going blind due to macular retina damage. He says it is due to staring at a computer screen for last 25 years in his job.
He says he will have to stop working from February 2020 as he unable to work anymore. Finance details:
He has 3 DC pensions with a total value of £340K.
He has a DB pension with a value £11K at 65 years old.
He has savings in his bank £170K.
This is his retirement plan:
1. He told me was that he would use his half his savings £90K to get him to 55 years old which is £1500 per month (leaving 80K savings left).
2. Then he would take his DC pension from age 55.
He says he wants to draw it down £1500 per month. (for 20 years?).
3. Then from 65, his DB would kick in, so he gets £918 per month.
4. Then from 67, he gets his state pension (with 30 years NI) so approx £700 per month. He would also still have that £80K left.
This is his plan. Do you think its ok?, or could it be improved?
His main concern is for next 5 years, from now to age 55 and how he will survive. He has 4 young kids as well.
I would be really grateful for your advise on this retirement plan? He did ok in life but this blindness has broken him. It's worrying times. Many thanks for any help. Really Appreciated.
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Comments
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First of all, I am sorry to hear that he is going blind, but there are many adaptations he can use that caters for his disability. Many charities can help out, as well. It is undoubtedly most worth registering with his local council as blind or sight-impaired as they like to maintain the register on disabled people in their local authority. Some boards issued the yellow card for it.
I am profoundly deaf, so I generally registered with local councils every time I move. I had a visit from the local council social worker every move for a chat. In the most recent meeting, we spent an hour or so discussing what I can get and what I can claim and so on, which was very useful. You do not need to be on DLA/PIP to request their help which is very handy once I lost DLA due to changeover to PIP. It is also worth claiming for PIP if he is affected by his blindness enough. Also, when buying the equipment designed for disabled people for personal use, you do not pay the VAT on it, so it saves money.
But he is in some respect in a very fortunate position with a lot of assets which will help him and his children out.
It could be a lot worse for him, much much worse (like deafblind). 
There is the reason why I personally fear blindness the most.
Back to the point of your question, I do not see a problem with the plan actually, but someone who is more experienced would be better to answer your question on the plan.0 -
I would also be looking at his current employer to find out if he is due any ill health benefits0
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My brother is 49.5yrs and he is going blind due to macular retina damage. He says it is due to staring at a computer screen for last 25 years in his job.
Slightly worrying given that I'm 50 and have stared at computer screens for my job for 32 years (including evenings spent on this forum!) I suspect it's more complex than that.:heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote Proud Parents to an Aut-some son 0 -
Make sure he gets a state pension forecast and takes any necessary steps to get a full state pension - that may be as easy as putting the child benefit in his name for a few years as that gives nI credits until the youngest is 12.
The numbers stack up fairly easily. DB plus full SP gives £18k pa post tax eventually. 5 years of £18k is £90k from his savings leaving £80k spare. 12 years from his DC takes about £220k leaving £120k from which he could hope to draw another £3 to £4k a year post tax so all told he should probably thinking more in terms of £1,800 a month rather than £1,500.0 -
Sorry to hear about your brother's sight, my mother has the same condition but fortunately only in one eye.
I'm pretty sure there are a raft of benefits when registered blind your brother will be entitled to which doesn't seem to have been calculated into his figures. PIP and carers allowance for any spouse together could be between circa £150 up to £215 per week (£7.8k - 11.1k/year) assuming he qualifies and dependent on the level of support needed.
https://www.macularsociety.org/your-rights
The main benefits are: Disability Living Allowance, Personal Independence Payment, Employment Support Allowance, Tax credits, Access to Work, Disabled Students' Allowances, Attendance Allowance and Blind Person's Allowance. Contact us on 0300 3030 111 for more information or visit https://www.gov.uk.
He/you need to ensure that he is claiming all the available benefits due to him, it's the reason he has been paying taxes and NI all these years.
I hope this helps0
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