Pension pot - annual income

[HouseHouseHouse7]

This is probably not complex at all if you work in pensions but I can’t find a simple answer online. All the calculators require a signup.

I’ve got an old pension with £62000 in it. If I took it at age 55 next year and for argument’s sake it were still worth £62k, how much would I get per annum? No lump sum.

I know it’s worked out on female longevity and other assumptions but that is the info I can’t find.

Tthank you.

about 2k a year

Do you know what type of scheme it is. Ie is it a defined benefit scheme or a defined contribution. I would assume it’s a DC as you refer to it as if it’s a pot of money rather than an annual income but don’t want to give you incorrect information.

If it’s a DC pension you can take as much as you want, but it will run out quickly! If you take the advised amount of 4% pa you’ll keep your pot roughly the same size and receive £2,480 a year.

If it’s a DB pension you’ll have to ask your pension company.

I think you can’t take either pension until 57 now.

As a conservative estimate I would divide it by 20, so about £3100 pa

Try the PensionBee pension calculator - it is free, and quite easy / helpful I think

You could buy an annuity an get £3,900 pa

Are you sure about the current value of it? Mr Trump and his crazy tariffs have probably knocked a chunk out of the value of it in the past few days. Bigly.

Thanks everyone. It is a DC.

yes, I agree about Trump! It was a bit higher last week (I can view it via my Lloyds Bank app).

I can definitely take it at 55.

I’d kind of forgotten about it tbh. I was in my twenties and self employed and my dad encouraged me to pay into a pension, which I did for several years.

Ah your with Scottish widow too? Mine took a dive this week too, I’m not looking again for a while!

It is still 55 until April 2028.