Sanity check my plans

[dirky dirk]

Hi.

Can someone sanity check my sums

M54 married own home,
hoping to retire early sixties around 400k in my pension by then.
and around 150k in savings by then

So if I was to retire at say 63and take 120 as a lump sum.
That’s tax free so I could use that for four years as an income of 30k a year. Then my state pension comes in at 67 of 11k a year so I’ll drawdown 20 a year for then at age 81 and onwards I’ll have my state pension plus my savings

Currently I’m paying 630 into my pension inc employer contris.
I’ll up that soon and also all future bonuses will be going which are around 5k a year
Mrs currently works part time and will continue to do so.

And we will downsize to something small in the Peak District

I’d be grateful for any opinions and ideas as to what I’m doing right or wrong.
One child already out of the nest one I’m doing my best to get out lol

Thanks in advance

[DeuceDeuce]

More info needed but main initial thought:

In today’s terms, you can have an income up to £12.5k without liability to income tax so using your tax free lump sum for that amount is a waste.

Google ‘phased drawdown’.

[chip*]

At quick glance:

1) Inflation

2) Preserve your 25% TFC, and more tax efficient to drawdown pension £16,670 (12570 personal allowance which will no doubt change, £4190 = your 25% TFC) + top up £13,330 from your saving

3) your wife's state pension?

4) don't under estimate one-off / irregular expenses e.g. new boiler, car expenses etc..

5) see #1

[scot_aln]

Wouldn't the max tax free on a 400k pension be 100k?

[TwigtheWonderkid]

If you need £30K/year, take £12570 from your 75% taxable part of the pension (assuming no other income) and £17430 from the tax free part. Draw it monthly, like a salary. £1047.50 from the taxable part and £1452.50 from the tax free part.