Twenty Two Years And Counting.
ChatterBank0 min ago
Looking For Ideas.....
23 Answers
For our pension pot up to now we have no alternative to buying an annuity (ok some draw down/limp some) is allowed. Now I hate the whole annuity idea but I must grudgingly accept it's merits. As far as anything can be guaranteed it is a safe option all be it with current interest rates (...and thus gilt rates) it provides a derisory income rate, needing a huge pot to get anything like a sensible income. Anyway I digress, with the new rules comming in I suppose myself and others are looking for creative ways to maximise income in retirement. I imagine financial firms will produce various "products" for the market but does anyone have any ideas for creating an income beyond the annuity or is it really still the best bet?
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No expert but I think it was generally agreed the interest / changes on annuities were an abuse of the pensioner's savings.
I suspect your best idea is to pay an independent financial expert to give you their advice. If you can identify them here then great. Have you scanned the various websites to see what is on offer now ?
I suspect your best idea is to pay an independent financial expert to give you their advice. If you can identify them here then great. Have you scanned the various websites to see what is on offer now ?
If your pension pot(s) are anything like half decent, they should be increasing a an annual rate of 5% per annum. A couple of mine are running at over 6. So I see no point in pulling huge lump sums out before you need the money, especially as it throws one into higher rate tax - something I for one have sought to avoid in my working life by investing in pensions. Point taken, though about the tax free sum, which I like the idea too of investing in UK property. It gives an annual income plus the reasonable expectation of capital growth in the longer term.
Not sure what point Talbot is making - property rental income is income for tax purposes, less any explainable expenses like mortgage interest. But it makes no sense to have a buy to let mortgage if one has the capital to fund outright.
Not sure what point Talbot is making - property rental income is income for tax purposes, less any explainable expenses like mortgage interest. But it makes no sense to have a buy to let mortgage if one has the capital to fund outright.
The annuity scheme is not attractive but at least pays a small income.
Despite that, it can pay-off if you have a long life-span as happened with my late mother.
As eldest son, I was forced to agree to an annuity scheme for my mother by virtue of my father's pension plan when he died prematurely. At least I was allowed to draw-down sufficient to pay her mortgage and guarantee her a home for life - first aim obviously.
That apart, the last person to advise is your bank-manager. He/she is only a sales-person.
As the stock-exchange is a gamble (with your money) any loose money is best gambled elsewhere e.g. Premium Bonds. At least that invested money is safe although devaluing with inflation. It can always be cashed-in if a major emegency occurs.
TTT, beware of any magic-money plans. If it sounds too good to be true, it isn't.
SIQ.
Despite that, it can pay-off if you have a long life-span as happened with my late mother.
As eldest son, I was forced to agree to an annuity scheme for my mother by virtue of my father's pension plan when he died prematurely. At least I was allowed to draw-down sufficient to pay her mortgage and guarantee her a home for life - first aim obviously.
That apart, the last person to advise is your bank-manager. He/she is only a sales-person.
As the stock-exchange is a gamble (with your money) any loose money is best gambled elsewhere e.g. Premium Bonds. At least that invested money is safe although devaluing with inflation. It can always be cashed-in if a major emegency occurs.
TTT, beware of any magic-money plans. If it sounds too good to be true, it isn't.
SIQ.
As regards rental of a second property, it sounds great until you face the underlying facts. It means you have to pay for the upkeep of two homes. That means doubling your insurance on both as well as paying community and income tax as well as management fees.
We have considered this and found it impractible in relation to our savings and current company-pensions income.
Let's know if you find unique scheme, otherwise play safe.
SIQ.
We have considered this and found it impractible in relation to our savings and current company-pensions income.
Let's know if you find unique scheme, otherwise play safe.
SIQ.
