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Retirement

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Original poster

Pension choices and no kids

9 replies

Crocuscacao · 22/02/2026 12:22

I will get my state pension next year. I have about the same amount in savings as I do in my pension pot (each under 170k). No kids and house fully owned. I want to enjoy holidays in retirement as long as I can. Also considering a major house move over the next 2 years or so, unlikely to release equity as I want a bungalow and they are pricy. I don’t tolerate risk much. Gut opinions please …. Annuity? I’m going crazy not knowing what to do and if I see an FC he or she will need facts and predictions which is hard with uncertainty.

OP posts:
Nourishinghandcream · 22/02/2026 12:26

You say pension pot so I presume you do not have a DB pension that will pay out for life?

MyNextDoorNeighbourVotesReform · 22/02/2026 12:30

I'm assuming your pension is a DC

How much more do you need each year on top of your SRP to live as you want to?

StripedMug · 22/02/2026 12:37

Do you have a partner? If so, what are their pension arrangements?

With £340k you could buy an index-linked annuity of around £18k per annum. Added to your SP that gives you just over £30k per annum which is pretty much bang on the recommended income for a moderate lifestyle in retirement. If you are risk averse and have no need to leave anyone an inheritance then this would be a decent option.

Alternatively, the rule of thumb is that you should be able to take 4% income from your investments over a 30y retirement (increasing with inflation)- this gives you rather less (just under £14k) but of course your investments may well do better than this and you'd be able to take a higher income and/or leave a large sum on death.

Given what you've said I would give the annuity serious thought- there is a lot to be said for certainty. You can put all your details here and play around with the options https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/compare-annuities I think you would need to set it up as two separate annuities- one inside and one outside the pension.

Original poster
Crocuscacao · 22/02/2026 13:10

Nourishinghandcream · 22/02/2026 12:26

You say pension pot so I presume you do not have a DB pension that will pay out for life?

I don’t have DB (sadly!) it’s the decision making that feels so hard.

OP posts:
Original poster
Crocuscacao · 22/02/2026 13:13

MyNextDoorNeighbourVotesReform · 22/02/2026 12:30

I'm assuming your pension is a DC

How much more do you need each year on top of your SRP to live as you want to?

Yes. Ideally about 15k but I would like a holiday/fun pot to enjoy till I get too old or ill or whatever.

OP posts:
Original poster
Crocuscacao · 22/02/2026 13:20

StripedMug · 22/02/2026 12:37

Do you have a partner? If so, what are their pension arrangements?

With £340k you could buy an index-linked annuity of around £18k per annum. Added to your SP that gives you just over £30k per annum which is pretty much bang on the recommended income for a moderate lifestyle in retirement. If you are risk averse and have no need to leave anyone an inheritance then this would be a decent option.

Alternatively, the rule of thumb is that you should be able to take 4% income from your investments over a 30y retirement (increasing with inflation)- this gives you rather less (just under £14k) but of course your investments may well do better than this and you'd be able to take a higher income and/or leave a large sum on death.

Given what you've said I would give the annuity serious thought- there is a lot to be said for certainty. You can put all your details here and play around with the options https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/compare-annuities I think you would need to set it up as two separate annuities- one inside and one outside the pension.

Thank you that’s really helpful. I like certainty and ease. I don’t really want to be having to review investments and such like more than I do now for savings which are all very safe. I know many people would say I’m stupid not to want to try for more but I had a bad investment experience a long time ago and the feeling never left me. I just really want enough but the desire to travel before it’s too late is quite strong. Certainty has value to me definitely.
I will check out that link, thanks.

OP posts:
MyNextDoorNeighbourVotesReform · 22/02/2026 13:47

Crocuscacao · 22/02/2026 13:13

Yes. Ideally about 15k but I would like a holiday/fun pot to enjoy till I get too old or ill or whatever.

Show quote history

You'll need £27 k a year excluding holidays? I ask this because my cousin has just retired and she lives on £18k excluding holidays as she wants to be frugal.... not necessarily everyone's choice!

Original poster
Crocuscacao · 22/02/2026 16:53

MyNextDoorNeighbourVotesReform · 22/02/2026 13:47

You'll need £27 k a year excluding holidays? I ask this because my cousin has just retired and she lives on £18k excluding holidays as she wants to be frugal.... not necessarily everyone's choice!

Show quote history

If I’m honest I don’t know, I’m trying to relate to what I get now for salary and I want to keep on eating well.

OP posts:
MyNextDoorNeighbourVotesReform · 22/02/2026 17:00

Crocuscacao · 22/02/2026 16:53

If I’m honest I don’t know, I’m trying to relate to what I get now for salary and I want to keep on eating well.

Show quote history

It's so difficult to know for sure how much money youll need, isn't it? Its tough

I think, from what you've said, an annuity is the best idea

Have you already had your f2f chat with Pension Wise?

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