I'm looking for some very general advise on how to approach pension planning, particularly in relation to figuring out how much my pension pot will get me.
I'm currently in a DC scheme and I'm paying AVCs to the max of the Revenue rules. My most recent statement tells me that my pension pot is predicted to be about 750k by my normal retirement age (which in my current employment is 60). I've also got a couple or PRBs from earlier employments that should be worth around about 100k.
So that's 850k in total, but I'm very confused about the choices I have with that and what it will yield me.
As far as I can tell, I could take 200k of that as a tax free lump sum and then put the remaining 650k into a ARF and draw 4% p/a as an income from that. That would give me 26k p/a (I understand that I may have to put 63.5k into a AMRF, but I can still draw from that, so my net 26k remains about the same).
I'd very much like to retire early, but 26k wouldn't be sufficient. But I can use my lump sum to top me up until my contributory state pension kicks in.
My confusion is about the options between buying an annuity and drawing money from an ARF. Annuities seem to yield much less than 4%, but I guess they are less risky and won't run out. I'm also not sure if drawing 4% p/a from an ARF is sustainable for somebody retiring earlier than the normal retirement age?
I'm currently in a DC scheme and I'm paying AVCs to the max of the Revenue rules. My most recent statement tells me that my pension pot is predicted to be about 750k by my normal retirement age (which in my current employment is 60). I've also got a couple or PRBs from earlier employments that should be worth around about 100k.
So that's 850k in total, but I'm very confused about the choices I have with that and what it will yield me.
As far as I can tell, I could take 200k of that as a tax free lump sum and then put the remaining 650k into a ARF and draw 4% p/a as an income from that. That would give me 26k p/a (I understand that I may have to put 63.5k into a AMRF, but I can still draw from that, so my net 26k remains about the same).
I'd very much like to retire early, but 26k wouldn't be sufficient. But I can use my lump sum to top me up until my contributory state pension kicks in.
My confusion is about the options between buying an annuity and drawing money from an ARF. Annuities seem to yield much less than 4%, but I guess they are less risky and won't run out. I'm also not sure if drawing 4% p/a from an ARF is sustainable for somebody retiring earlier than the normal retirement age?