Drawdown or take pensions early
Discussion
I am looking to retire shortly and have four final salary schemes (some have retirement age of 60 and some 65 - the two bigger ones 60). I am 63 in 3 months.
Between us we have a fund from DC schemes and lump sums of approx £300k.
The DB schemes have penalties for early payment so am I better living off drawdown for a couple of years, to the extreme of even letting those with a retirement age of 60 continue to grow at 6% plus inflation or is it better to just take the pension as it stands and minimise hits to the drawdown fund?
Am I better taking maximum tax free cash from the DC schemes or converting to pension? My gut feel is to take as much as I can as pension as we don't really need the bigger lump sum as we get some from my current DC scheme. When state pension arrives we will both be paying basic rate income tax.
Between us we have a fund from DC schemes and lump sums of approx £300k.
The DB schemes have penalties for early payment so am I better living off drawdown for a couple of years, to the extreme of even letting those with a retirement age of 60 continue to grow at 6% plus inflation or is it better to just take the pension as it stands and minimise hits to the drawdown fund?
Am I better taking maximum tax free cash from the DC schemes or converting to pension? My gut feel is to take as much as I can as pension as we don't really need the bigger lump sum as we get some from my current DC scheme. When state pension arrives we will both be paying basic rate income tax.
Gassing Station | Finance | Top of Page | What's New | My Stuff