Pretty much that......luckily the eldest a) studied nursing in Scotland (no fees, and got a bursary) b) plans to stay up there so housing is massively cheaper c) has already been working (and saving) for a couple of years. I’ve promised to fund her Masters though and we’ll help with property...
Had a chat with my adviser a couple of weeks ago......something I hadn’t really thought about was the likely reduction in spending as you get older. Currently I reckon I’d burn through my pension at an alarming rate as we’re reasonably fit and active, travel a lot etc, but as time goes by this...
Yes........but bear in mind the usual drill would be to take 25% when you can (if you need to) and then schedule additional drawdowns after that to minimise tax (if necessary using the 25% to help fund your lifestyle). Unless you have a particularly extravagant lifestyle you should be able to...
If you’ve got any kind of decent sum tied up, professional advice is critical.......think the report on my modest DB pot ran to about 40 pages and was prepared by an actuary and interpreted by an IFA.
Exactly
1k would be 4% pa (a decent, but not unachievable, return that would leave your 25k intact and be available to your legatees if the worst should happen, unlike if left in a scheme)
You can obviously schedule your drawdowns to maximise tax efficiency too.
That’s what I meant by cashing in........not simply taking a lump sum from a DB/DC pot......my bad for not being clear
Not sure why there are a number of posts that are pointing to the need for pension income. Drawing down from a lump sum can provide ‘income’.
Not necessarily true.......lump sum can be invested and drawn down as required as an alternative to a regular pension income. Doesn’t have to be spunked on a Porsche and cheap hookers (although can be, obviously [emoji106][emoji16])
Advisers are pretty highly regulated now......saying they are ‘unlikely’ to give good, objective advice simply isn’t true or fair on the vast majority who do a decent job. FWIW if you’re cashing in a pension pot over £30k I think you HAVE to take independent advice.
Sounds fairly typical - most DB schemes have been capped or stopped completely now. Annuity rates are indeed poor..........I had a (legacy - from a former employer I left a long time ago) capped DB scheme until recently but took it all out and invested in a SIPP instead (annuity rates being low...
Sounds more like it's a company scheme (final salary ?) than an annuity. Either way, I'd highly recommend at least a chat with an independent adviser - most will offer an initial consultation for free. Rules around pensions, and associated options, are incredibly complex and the wrong decision...
Correct...but that's not what you posted..............'ISAs don't have much of a return at the moment (or the last 8 years or so come to think of it'
If you'd added 'cash' at the start it'd have been ok...............