George and his wife are ages 63 and 64, and they have two financially independent children. He retired last year and his former workplace defined-benefit (DB) pension pays out around £50,000 a year before tax. His wife receives £1,750 a year after tax from her former workplace pension. Their home is worth around £700,000 and mortgage-free. George and his wife also have half-shares in two residential properties, one of which is being sold and should give them proceeds of £220,000.
Sipp, Isas and investment account invested in funds, pensions, residential property, cash
£30,000 per year on top of pension income to maintain lifestyle, fund children's pensions
“We need £30,000 a year in addition to our former workplace pensions to fund our lifestyle,” says George. “I draw £26,000 a year from my self invested personal pension (Sipp), which is worth around £1.4m and of which £743,696 is deferred. I have a pensions lifetime allowance of £1.8m and at age 75 I will face a charge.