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Can I split a pot into part annuity, part drawdown?
Posted: 10 December 2012 14:28:29(UTC)

Joined: 04/02/2012(UTC)
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I'm planning to take early retirement shortly aged 56. I have a £300k DC pension pot with my current employer, but I'd much rather not use it to buy an annuity and would prefer to go the income drawdown route.

As I understand it, I need £20k of other pension income before I can enter a Drawdown scheme. In fact I only have about £17k from previous DB schemes.

Now, is it possible for me to use a bit of my £300k pot in order to buy a very small annuity so I can top-up my 'other' pensions to the £20k threshold, and then put the rest into a drawdown scheme?

If so, would a single scheme provider be able to arrange this for me?
Denis Parkinson
Posted: 10 December 2012 15:29:39(UTC)

Joined: 19/12/2011(UTC)
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You don,t need 20k of other pension to go into draw down, if you go to Hargreaves Lansdowne web site you will be able to download free guides. I have a draw down pension through Hargreaves Lansdowne.
Posted: 10 December 2012 15:54:39(UTC)

Joined: 05/01/2012(UTC)
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I think you mean a flexible drawdown after you have bought an annuity to make up your guaranteed income to 20k. You can then draw down any amount from your pot in the tax year that you have 20k but will have to watch the rate of tax you will pay.

I am in the process of buying an impaired life annuity to bring my income up to 20k and will then flexibly drawdown the rest over a number of years.

Hope this is helpful
Posted: 10 December 2012 17:21:14(UTC)

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Yes I did mean Flexible Drawdown.

Elidh - it sounds like you haev done exactly what I was asking about, so it's clearly OK.

Many thanks.
Cane Wreck
Posted: 02 February 2013 16:32:38(UTC)

Joined: 31/01/2013(UTC)
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I would take the 25% tax 100 % free group sum and spend money on greater producing stocks - stocks and/or financial commitment trusts and ideally Isa - this year and next could protect it if you have a partner. £45K should offer a tax 100 % free earnings of around £2K+ and keep speed with rising prices.

Annuities are a laugh at the moment so shift the rest into draw down but keep spent in stocks to keep speed with rising prices.

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