Average return from SIPP

Skinnydad · 16 April 2018 at 4:38PM

Sorry Dunstonh these are not projections these are the actual figures I have received from Santander and the PPF as these can both pay out 60. which for me is 2 months time and the correspondence has just came in. The 190K is hard fact todays figures and the 47K was a figure from 2 years ago (as I'm not relying on this I've asked for an updated projection). So I can't see why you'd say they are assumptions? The state pension does pay out at 66 for me... As for consolidation.if you mean bringing together then I don't believe the PPF allows you to take all your money out from them? Aegon will not accept DB schemes. This leaves me in the position I'm in. Sorry but it just where I'm at, at present. I didn't realise the stock market had taken a 10% dive, and taking your experience into account then a 7K return over 15 months is good! Thanks again.

dunstonh · 16 April 2018 at 4:42PM

Sorry Dunstonh these are not projections these are the actual figures I have received from Santander

Even if they are not projections, it will be annuity as Santander dont offer drawdown.

Aegon will not accept DB schemes.

They do under advice but consolidating your DB schemes may not be appropriate. Consolidating the DC schemes though maybe. Having one money purchase fund is so much easier in drawdown.

Brynsam · 16 April 2018 at 7:18PM

Skinnydad wrote: »

This is a company SIPP, therefore managed on your behalf.

I think you might be confusing 'manage' with 'administer' - surely your employer isn't taking your investment decisions...?

Skinnydad · 16 April 2018 at 9:48PM

Yes administered..apologies. Thanks Dunstonh it's not a Santander scheme, I believe it's an old Abbey Scheme as they took over Abbey National. It's not an annuity its a FS pension I believe. As for Aegon I'm in a vehicle called Retiready pension at this states:

We accept transfers from the following types of pensions:

Personal Pension (Group, individual and self-invested)
Stakeholder (Group and individual)
Money purchase occupational pension scheme (unless you have a fixed or guaranteed benefit)

Retiready cannot accept transfers from defined benefit pension schemes (often called 'final salary' pension schemes).

So for me I have the Pension protection fund, Santander (aka Abbey DB) and Aegon Retiready

I was just trying to work out the best method if it was possible to meet my financial goal of 2200/2300 per month... Thanks again....

Potboiler · 16 April 2018 at 10:59PM

My SIPP has lost approx 4% in the last year. Invested in low cost Lifestrategy/HSBC balanced funds. Mainly due to increased volatility/appreciation of sterling in last two months.

kinger101 · 16 April 2018 at 11:16PM

What will you get from your state pension? The full new state pension at 65 is £164.35 a week which translates to £8,600 per annum.

To get £2,300 a month, you need £31,538 income

Taxable income = £31,538
£11,850 @ 0% = -£0
£19,688 @ 20% = -£3938
Net income = £27,600 or £2,300 pcm

£8,600 state pension (once you're entitled) + £4,600 Abbey + £8,100 PFF = £21,300. That leaves £6,300.

From £200K AEGON, £100K savings and the Abbey TFLS (£?).

Ignoring the Abbey, which you've not given a value for, you'd take £50K tax free from AEGON. That leaves £150K. At 4%*, that's £6K. And £150K in the bank to tide you over until the pensions kick in. In those years, draw down up to the personal allowance.

Personally, given the heavy weighting of the state pension and defined benefit, I'd leave it heavily investing in shares, keeping only rainy day money plus 3-4 years the amount you need in addition to the state/DB pension to tide you over and ride out dips in the stock market.
Drawdown and stick in stocks and shares ISAs if needed.

*4% might be regarded as excessive, but you can easily rebalance based on investment performance, given most your income is defined.

Average return from SIPP

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