Im in a similar position, not quite as much at this point but about 5 years younger so you are where I am hoping to be in a few years time. I have also taken a similar hit over the last 12 months and it does sting but i just keep investing as much as I can into the pension. It is interesting that annuities now seem to be a lot more attractive than they have been in recent years.
I'd argue it's a good rule of thumb and should be taken as a rough guide.Unfortunately the 4% rules is not a rule…
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But what happens to the £250k after you die with an annuity? If you lose it, then that might not work for people wanting to leave an inheritence.Welcome to MyAviva - Login or Register
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A 250k fund could give around 17k pa as an annuity
Add the state pension to it and that's going to be in the region of 24k pa tax free
I was talking to a guy in Turkey who tells me that they have a similar system over there where you pay an insurance into the Government each month based on hour you have worked. Once you have contributed either the specified number of years or hours required you stop paying in but can start to withdraw.
apparently i get to choose.
You still pay tax on that surelyWelcome to MyAviva - Login or Register
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A 250k fund could give around 17k pa as an annuity
Add the state pension to it and that's going to be in the region of 24k pa tax free
It won’t be tax-free. Just like when you are working, you’ll pay 20% tax on everything above the ~£12.5k threshold, regardless of where your money comes from (unless you’ve already factored that into your 24k figure?)Welcome to MyAviva - Login or Register
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A 250k fund could give around 17k pa as an annuity
Add the state pension to it and that's going to be in the region of 24k pa tax free
Anything over the tax allowance which is 12500 is taxable
Put it in your works pension they will match your payments to a certain level double bubble !!!