This will provide her with a maximum tax free cash sum of £51,400 and either -
*To illustrate the variables and the type of decisions someone might need to take, this assumes that the remaining fund does not grow. In reality Susan is likely to keep some or all of the funds invested and might factor in some growth into her calculations.
Now let’s assume that Susan decides to change her investment outlook and invest in higher risk funds and invest a lump sum bonus payment she received from work.
What the examples above demonstrate is that if Susan was to take £16,000 from her pension savings as a regular income, then she would run out of money quite early into retirement. For it to last her lifetime (estimated to be age 89*) she would either need to retire
with pension savings of roughly £420,000 (if she took the maximum tax free cash) or she would have to be more realistic and take less of an income from her savings. In addition there’s a 1 in 4 chance that Susan would reach the age of 96 meaning her pension income could have to last for 28 years after she retires.
Find out how long your pension may need to last (opens external site in new window)
To illustrate the variables and the type of decisions someone
might need to take, this assumes that the remaining fund does not grow.
In reality Susan is likely to keep some or all of the funds invested and
might factor in some growth into her calculations.
Putting more money into your pension can help you reach your retirement goals. Find out how much you can top up your pension by and how to do it.
Making sure you're invested in the right funds is one of the most important parts of retirement planning. So how do your feelings about risk affect how your money is invested?
If you have more than one pension, bringing them together could help you achieve your targets better than if they sit separately.
You might consider delaying when you receive your pension. This gives it more time to potentially grow in value. Call us to discuss.
It's important to discuss your retirement options with a financial adviser. They'll be able to help you decide on the right thing to do for your personal circumstances. If you don't have a financial adviser we've outlined reasons why you might benefit from using one and how to find one local to you.