Please may I ask what choices you made payout wise re: private pension?

[AppleFruitloaf66]

My private pension comes into fruition next year at fifty five.

I appreciate it will be ultimately our decision when asked what choices we want to go with, but I’m asking to see what choices people made when their private pension came into fruition, or any advice really, so we can make a more informed decision.

We were looking at taking my 25% tax free lump sum, then the rest at a later date, or whether to wait a further two years when dh collects his, but with Brexit, we’re a bit worried about future investments.

Thanks in advance. Hope I made some kind of sense...

Sorry just seen your post hence my late response.

I have 2 private pensions. A pension which my IFA opened for me many years ago, (He switched it to flexi drawdown once I decided to draw from it.). It was originally a Stocks and Shares pension but 18 months ago I switched it to what he called a "smoothed out" plan which thankfully has not been negatively affected by the recent crash. My other pension is a final salary pension although I joined vary late in my employment with my previous employer so only relatively small.

I retired early at 59 and immediately started taking £500 per month from the flexi drawdown. I continue to do this as don't qualify for the state pension for another 2 years. Once I was 60 I decided to start drawing on my final salary pension which would have paid more had I left it alone until I was 65 but after looking at the figures I decided to draw it at 60. I initially took 25% of this and then I take a monthly amount. I ensure my total income is under the tax threshold less the 10% I give to my husband. We are mortgage free and my husband has very healthy pensions so we are very fortunate in being able to live very comfortably and still save a considerable sum each month. Once I can draw my State Pension, I intend to freeze the remainder of my flexi drawdown pension as I basically wont then need it.

I don't know if this helps at all but the above has worked incredibly well for us for 5 years now.

@Rafflesway, thank you for answering, it’s interesting to see different ways that other people draw theirs.

Many options to consider.

I’m glad your pension is working out well for you.

So far so good Applefruitloaf66.

I am certainly thanking my lucky stars every day for financial decisions we made over recent years bearing in mind the current climate. 🙏

It does depend on what sort of pension it is.
Is it a final salary (defined benefit) pension or a money purchase (defined contribution) pension?
If final salary is your normal pension age 55 for that pension? There are lots of variables.

I withdrew 25% lump sum last year at 55 and take a monthly payment too. Still work full time but would rather have the money now when I can enjoy it. My father and grandparents died relatively young so I am doing things now rather than waiting and maybe not being able to enjoy in 5 or 10 years time. The only drawback is I’m taxed on the monthly amount but not worried about that in the grand scheme of things.