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How do I avoid breaching the pensions lifetime allowance?

This investor's pensions are close to the lifetime allowance limit
How do I avoid breaching the pensions lifetime allowance?
  • Alan could consider stopping contributions of £375 a month into his Sipp
  • It is a good idea to reduce risk and volatility, at least for a proportion of investments, when drawing an income
Reader Portfolio
Alan 56
Description

Defined benefit pension, Sipp and Isa invested in funds and shares, cash, residential property.

Objectives

Retirement income of £4,000 per month, pay off mortgage, avoid breaching pensions lifetime allowance.

Portfolio type
Managing pension drawdown

Alan is age 56 and has recently left employment with a voluntary severance package which should fund his living expenses until next April, and some home improvements. His partner is age 56 and earns £50,000 a year.

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