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In what order should we draw from our assets in retirement?

These investors want to draw from their retirement assets in the most tax-efficient order
In what order should we draw from our assets in retirement?

These investors want to minimise income tax while maintaining a reasonable income in retirement

They could do this by drawing from more than one pot of income at a time

Their self managed investments are UK orientated so they should diversify these geographically

Reader Portfolio
Dewi and his wife 61 and 57
Description

Pensions, Isa and investment account invested in funds and shares, employer share scheme, equity crowdfunding, cash, residential property.

Objectives

Fully or partially retire in three years on £25,000 to £30,000 a year, minimise income tax, draw from assets in retirement tax efficiently. 

Portfolio type
Managing pension drawdown

Dewi is age 61 and retired from full-time work four years ago. For a few hours a week, he helps his son run a property business and earns £5,000 to £6,000 a year, and plans to do this until he is 63. Dewi has also been receiving £2,400 a year from a former workplace defined benefit (DB) pension since May last year.

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