How wealthy?

[laurentian]

Maybe if you can take more than one tax free lump (up to the 25% limit), maybe take part of it out and see how your finances go before deciding on whether to take another lump?

Ah! didn't realise you could do that - I've learned something! Thanks

 

[Stevo 666]

Ah! didn't realise you could do that - I've learned something! Thanks

I'm not 100% sure about that but at least you know to ask! Do you have a good pension/financial advisor?

 

[First Aspect]

Oh you have no shame Stevo.

 

[First Aspect]

Is it just me being overly optimistic, but isnt aiming for 80 a bit conservative?

 

[Stevo 666]

Oh you have no shame Stevo.

I'm not putting myself forward!

 

[laurentian]

Is it just me being overly optimistic, but isnt aiming for 80 a bit conservative?

I figured by 80, I probably won't need as much.

 

[laurentian]

I'm not 100% sure about that but at least you know to ask! Do you have a good pension/financial advisor?

Thanks again. I haven't taken any advice as yet and don't have an adviser - I intend to get one!

 

[BoldonLad]

Cheers - not intending to put 25% "back in". The 25% would sit in a bank account and top up the annuity (i.e. paid into my current account along with the annuity) to keep in the "lifestyle to which I am accustomed"

I did something similar to what you proposing. However, I did not take the 25% lump sum, instead, I opted to leave it in the scheme, and, receive a very slightly increased monthly pension. One advantage of this, in my case, is that my “dormant” final salary pension scheme did include an annual increase, concerning payment. By opting for no lump sum and slightly higher monthly payment, I also receive a slightly higher annual increment. Having been lucky enough to live 17 years (and hopefully more to come), I calculate I am better off than I would have been if I had taken the 25%. My circumstances may not match yours of course.

 

[BoldonLad]

I figured by 80, I probably won't need as much.

That may or may not be true, depending (among other things, your health) plus do not underestimate the effects of inflation! I am 77, going on 78 and my outgoings have not decreased since I retired (early) at 60. Plus, unfortunately, my wife’s health is likely to cause an increase in outgoings

 

[Pblakeney]

Ah! didn't realise you could do that - I've learned something! Thanks

This is not advice it is simply what I do.
I draw down a taxable amount up to the tax free limit. I then top up to what I want/need from my tax free amount. This is only a few percent so this process will run for nearly 10 years. The State pension will kick in before then so I will be re-evaluating my strategy at that point.
Note to draw down the taxable amount on a monthly basis, not lump, so you don't get taxed as if taking that amount monthly.
Also draw down the tax-free money monthly for easier budgeting and your pot remaining larger for a bit longer will earn a bit extra in the meantime.

 

[bobzmyunkle]

A bit of a thread hijack but as a couple of you on here seem to know what you're talking about, I wonder if someone could offer me some advice:

Best advice is don't take advice from anyone on here.

 

[Ian H]

If it's any consolation, friends of mine who retired in their mid 50's have now un-retired as they got bored/under the OH's feet or whatever - and not because they needed the money.

I don't really understand the concept of retiring to do nothing.

 

[Stevo 666]

I don't really understand the concept of retiring to do nothing.

Me neither.

TBF my friends who un-retired weren't doing nothing but clearly it wasn't enough. Going from full time/long-ish hours 5 days a week to not working can be a bit of a culture shock.

 

[pinkbikini]

That may or may not be true, depending (among other things, your health) plus do not underestimate the effects of inflation! I am 77, going on 78 and my outgoings have not decreased since I retired (early) at 60. Plus, unfortunately, my wife’s health is likely to cause an increase in outgoings

I was going to say the just that. Assuming that your financial requirements are lower in your later years is risky (unless you have family prepared to care for you, and even then do you want to deprive them of their earning potential? Isn’t it better to assume that what you need at, say, 65 is what you’ll need at 80, and ‘bank’ the difference in the meantime?

I could be completely wrong, and I have a habit of being financially under-prepared!

 

[briantrumpet]

I don't really understand the concept of retiring to do nothing.

To be fair, you do sit around on your ar$e for long periods.

I mean, how long did it take you to do PBP on a fixie?