- This investor wants to supplement her pension income with £12,000-£15,000 a year
- She could use her funds to buy an annuity but might not have enough to buy this level of income
- Drawing from her investments could generate this amount but they could run out before she dies
Pensions invested in shares and funds, cash, residential property.
Take £12,000-£15,000 a year from investments to supplement income, 5% a year return from investments, decide whether to transfer personal pension into Sipp,
Marion is 69 and retired. She receives state pension of £15,000 a year and an occupational pension of £500 a year after tax. She has three adult children. Marion’s home is worth around £725,000 and mortgage-free.