Pensions/drawdown etc

[northernladuk]

HL SIPP - £125K
EX-employer pension - £25K
Current Umbrella pension - £42K
NEST - £2

Not brilliant....

Thanks PC.

[sludgesurfer]

One of the best explanations I've read:

The annual allowance for pensions

[psychocandy]

****.

Why? Its hardly like I've got a massive amount that I'm boasting about.....

[psychocandy]

***.

Actually, if I'm going to boast, you should see the size of my..... ok I'll stop there.

[northernladuk]

Actually, if I'm going to boast, you should see the size of my..... ok I'll stop there.

Would have been better if you'd stopped around post number 4

[psychocandy]

Drawing the 25 per cent tax free does not trigger MPAA. Spend it on cocaine, hookers or daffodils. No difference.

Draw down even 1p in income after taking the 25 per cent and you trigger the MPAA.

And MPAA when triggered applies to ALL you're pensions not just the one you took it out of?

[psychocandy]

Take out £250K spend £50K per year on fun stuff, if you make it till sixty you are nearly deed anyhoo, so no need for a lot of cash after that

Long time deed


Sent from my iPhone using Contractor UK Forum

Throw yourself at the mercy of the state and claim benefits ;-)

[mudskipper]

HL SIPP - £125K
EX-employer pension - £25K
Current Umbrella pension - £42K
NEST - £2

Not brilliant....

Is that 25K income or 25K pot? If that latter, that doesn't sound like much of a retirement income. IIRC, the rule of thumb guidance used to be £100K of pot for £5K of annual income, so you're looking at around £10K a year there - probably better than most of the population, but not exactly easy street money.

I suppose a better question that 'how much have you got' is how big a pot you need in order to be able to retire at 55.

Vaguely thinking about chucking it all in next year - currently (counts fingers) 53, so just over a year till I can access my pot.

But am absolutely clueless about how it all works, whether I can afford to not work, whether I'm allowed to take a part time job while drawing pension etc, etc.

No mortgage, but I don't want to be counting pennies if I want a weekend away, or an occasional holiday etc.

No idea how long I'm gonna live for, that kinda info would be handy...

[Fred Bloggs]

And MPAA when triggered applies to ALL you're pensions not just the one you took it out of?

Refer to your other post in the other thread where you posted the same question.

[Fred Bloggs]

Is that 25K income or 25K pot? If that latter, that doesn't sound like much of a retirement income. IIRC, the rule of thumb guidance used to be £100K of pot for £5K of annual income, so you're looking at around £10K a year there - probably better than most of the population, but not exactly easy street money.

I suppose a better question that 'how much have you got' is how big a pot you need in order to be able to retire at 55.

Vaguely thinking about chucking it all in next year - currently (counts fingers) 53, so just over a year till I can access my pot.

But am absolutely clueless about how it all works, whether I can afford to not work, whether I'm allowed to take a part time job while drawing pension etc, etc.

No mortgage, but I don't want to be counting pennies if I want a weekend away, or an occasional holiday etc.

No idea how long I'm gonna live for, that kinda info would be handy...

Today, I would suggest 5% drawdown is far too high to be sure you won't run out of money. Especially going into drawdown at 55 if you pull out money to live on. There is no magic number that's guaranteed to work. But it's going to be far less than 5% drawdown if you don't want to run out of money.