How much from pension ?

[GoodnightGrandma]

If I was to get £156,000.00 in pension from DH in the settlement, how much could I expect to get a year after I’ve taken it ?
And if DH can take his at 55, could i too or would it be a different agreement ?

That should say ‘how much per year’

If you are 55 now and start withdrawing from it now, you’d get around £9k/yr assuming you do not use any of your 25% tax free lump sum.

Obviously, if you are younger and it is a vested pension that grows over time until retirement age, you’d have a higher annual income when you reach 55.

I would think that if it’s 55 for him, it would be for you as well. Most pensions don’t have different ages by sex anymore.

You can take pension at 55.
You would be buying an annuity to give you an income. They are individual policies. Think of it as life assurance in reverse. The company will calculate your life expectancy and agree to pay a certain amount until your death. If you are older or sick you will get a higher amount.

If you are entitled to full state pension you could take a higher amount up until the state pension kicks in.

You need to get professional advice that fits your circumstances.

I think the guidelines are to take an 4% out per year as an income. Or you can take 25% out tax free as a lump sum, both of these options are when you are 55.

Thanks, I’m 50 so it’s got a bit to run.
I’m just concerned about maybe losing my job in the future, so it would just be nice to know that I’d be ok after a certain age.
Yes, I’m entitled to full state pension, currently at 67.

Anyone know what it is thought you can comfortably live on ? I’m thinking paying bills and food/clothes etc, not expensive holidays !

You can get quotes for annuities all over the internet

LG here

An annuity is guaranteed to pay out for the rest of your life however annuity rates have fallen considerably in my lifetime.

If you have other sources of income, such as a full pension, you could convert this pension to a different kind of account and just drawdown as required. To cover special events including things like boiler failure etc. It looks attractive compared to annuities but is obviously at risk of running out in your lifetime.

Do get financial advice.

I personally prefer money in my bank under my control, rather than being given it bit by bit, so would it be wise or not to take the lump sum and invest it somewhere pretty safe ? Or is it better left with them ?

Don’t forget, that will add to your own pension too - I’m presuming if you are working you will have your own pot?

I will get advice, I’m just asking as I think of things.
Being able to get hold of money in a an emergency is a thought.

You can mix and match too. Have one pension pot as an annuity, another pension pot as a drawdown. I agree about talking to a financial advisor.

I wouldn’t get an annuity.

@Chippymunks

I think the guidelines are to take an 4% out per year as an income. Or you can take 25% out tax free as a lump sum, both of these options are when you are 55.

This is what I have been told. Don't know where PP who said £9k a year got that from, you'd burn through the lot by the time you're 70!