Another sanity check

kidmugsy · 28 November 2017 at 12:35AM

In your shoes I might retire soon and make up for missing income in 17/18 by using some of the TFLS from the money purchase scheme. Then in 18/19 onwards I'd drawdown enough from that scheme to use up my Personal Allowance vs income tax, and boost that to £25k using more of the TFLS.
At 60 I'd start my DB pension. Then I'd boost my income to the desired £25k using more drawdown and TFLS. Finally at 67 I'd have an adequate annual income from DB + State Retirement Pension and a useful back-up of cash left in my money purchase pension.

I suppose that if I were an unconfident investor I might invest most of the capital within the money purchase scheme into a "ladder" of gilts.

The alternative is one you've suggested: work part time or even just find an undemanding job wth a different employer. There's no sense in risking your health by sticking to the wrong job when you have such a fine level of capital/pension rights under your belt.

Pensions_matter_2 · 28 November 2017 at 8:14AM

That's really helpful and reassuring. Often difficult to know how to assess ones situation. Worry about inflation too, but at least have a little indexation (capped) built into DB pension. Need to think about part time, different job, or one more year!

Great to have your input.

justme111 · 28 November 2017 at 9:01AM

you have about 25O k spare- why would you need to think about OMY (one more year, a recognised syndrome:)

Pensions_matter_2 · 28 November 2017 at 9:49PM

It would be £225k ( depending on how I take it), but very much appreciate your point about one more year. Definitely one I will mull over.

Thanks

justme111 · 29 November 2017 at 1:16AM

I wiild have imagined you done that one more year and have not 300 k but lets say 330 k. Why 330 would be enough and 300 not so ?

Pensions_matter_2 · 29 November 2017 at 9:19AM

Yes, a good point.

Kidmugsy, can I ask you how I would go about looking into a ladder of gilts - not sure I can do that in the schemes I'm am in. Where would I be best moving funds to?

Thanks

enthusiasticsaver · 29 November 2017 at 6:03PM

You have several options depending on whether you plan on going before 60 or before. If you use the DC pot to bridge the gap between now and 60 that reduces it by £75k - £100k at £25k per annum depending on returns. If you then take your DB pension at 60 there will be a £6.5k shortfall for 6 years which presumably again will come from the DC pot until your state pension kicks in. I would say you can afford to go now or within the next year. I don't think I would go for an annuity but if it gives you peace of mind then you should do it.

Pensions_matter_2 · 30 November 2017 at 9:23AM

Thanks, that's helpful.

Alter_ego · 30 November 2017 at 9:34AM

DO IT! Life's not a rehearsal.

Arthurian · 30 November 2017 at 10:37AM

Moving from a salaried, full-time job to a series of part-time, temporary, hourly-paid jobs was, for me, a breath of fresh air. Very little stress, not too much expected of you, you choose where and when to work. I found it an ideal way to transition into retirement, earning a little money for extras such as holidays. Maybe you could pop into a local temping agency and ask what they could do for you, before jumping?

Another sanity check

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