Retirement income options with a £200K pension pot - Episode 5 Pension Income Planning

In this fifth episode of a pension income planning series we look at what income levels you may achieve with £200K in pension savings. We also look at how inflation may impact your retirement income and look at both early retirement and retirement at state pension age scenarios.

Inflation was around 4% at the time of filming but jumped to over 5% just one week later.

We look at annuity incomes assuming you will take the 25% lump sum in full and use the remaining balance to buy an annuity.
We then look at keeping all of the money invested and potential income options using drawdown.

***Related content***
Episode 3 - £300K pension pot - retire in comfort:

How to top up your state pension:


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Keywords:
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#retirementplanning #pensionplanning #pensions

DISCLAIMER: This is NOT financial advice, it is financial education. Be sure to seek a professional financial advisor for advice tailored to your needs.

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[ferenczsinko]

I have just run the same L&G calculator 17/03/2024 with same figures. So when this video was made the figure was £5325, Today 3 years on, the same figures would give you £8100 a year for life - that's £2775 a year more for life or an additional 52% more per year, every year until you die. Rates have gone up amazingly and this is the year to take an annuity before interests drop back resulting in lower figures. I will come back in a further 3 years time to see what the L&G calculator shows for the same figures in 2027. Interesting stuff - Subscribed.

[KristinPMosher]

Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.

[tancreddehauteville]

Drawdown is the best route - because you are in full control of everything and your options remain open. Avoid annuities like the plague.

[brownwellson]

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this

[tonykelpie]

There is no substitute for putting the effort in to understanding and controlling your own expenditures and your various sources of income. This approach is simplistic and misses out the importance of understanding and controlling expenditure

[williamjohn]

Retirement is wonderful if you have two essentials — much to live on and much to live for. Invest wisely and get good returns.

[BouncingBack]

Episode 5 of the Pension Income Special series - what income a £200k pension pot could provide. We also look at inflation impacts, which jumped to just over 5% in the space of one week from filming to release.

[DC_]

I'm 37 and starting to worry about being homeless once I'm realistically too old to work, as I'm on a relatively low salary and don't own a property. I've always paid into a corporate pension and will continue to do so but I don't know if it will be enough as rents and property prices will only keep on rising. Unlike my salary, as I've always had trouble taking on more responsibility. I'm currently trying to track down a previous pension, which is proving difficult but will keep at it. Then will do some calculations.

[JURASSICDIVERUK]

Another great video and very informative. Sorry if this is something you have already But could you do a video on how much you ideally should have in your pension pot by the ages of 30, 40 and 50...like would £100, 000 but a good target to reach by 50?
Thanks!

[Whalewraith]

Im old enough to remember the winter of discontent . Inflation hit 18% in 1980 (UK). I don't expect it to get that high again but it can go well over this 3% people keep throwing around.
Maybe im missing something but what possible reason is there to spend a £200, 000 pot to take £16, 000 a year for a decade? (total£160, 000)

[yasinnabi]

Awesome sharing, enjoyed watching your videos :)

[lessharkboy]

Thank you, was hoping you'd make this video 🙂

[PDCRed]

I'm not an an adviser and all imo... Even in retirement (for drawdown) I think people don't take enough risk. You should be able to achieve a target drawdown of 5-6% so long as your risk is high enough and you adapt your drawdown to reflect market conditions.

[blhlow]

Thanks, Helena for your videos. Much appreciated. I'm thinking of withdrawing from my company's pension and/or my SIPP this year and am considering between drawdown and UFPLS. I definitely do not want an annuity because of the low interest rates. Could you comment on the difference or do a video on this?

[YOUAREMOVINGUP]

Great video lots of easy to understand information. Thanks

[terrycooper]

Worked for several companies over the years. Have a pension (some small) of different types, proper corporate, people's, etc. Any advice on how to handle the situation?

[mal]

Great content very informative Thanks.

[peterjohnson]

Great video. I have retired a few years early and my state pension will start in 3 years time. Can I draw down a higher amount over the next 3 years to use up my personal income tax allowance and then reduce the drawdown when my state pension kicks in? Many thanks

[Codydawg]

Annuity income rates drops if you factor in inflation rise each year, otherwise you receive this fixed amount for life.

[chipledhungaman]

Bonds arent such a safe bet at the moment (Oct 2023)