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I have 2 small pensions with Aviva. One matured but I have left in but am now thinking of drawing it./ 24.8.2013• A. Velasco• Posted At 04:00 PM

…The fund value is £8,351.90 estimated 15 July’13.What amount of pension could I draw from this? The other one will mature on my 65 birthday 16032016.At the moment is has Opted out portion £5117.60 and the other portion is £7039. What pension would this generate me do you think in 2016?

Kind Regards, Susan

IFA Steve says:

There are lots of factors to consider here before being able to give you specific figures:
• You would need to check whether there are any guaranteed annuity rates available in your current pension contracts
• Whether you want to take any lump sum from the pension or just income.
• Whether you want your benefits to be level or index-linked
• Whether you want to build in any guaranteed payment periods, or spouse / dependents pensions
• Also your own individual health, around 50% of people can get enhanced rates based on a variety of factors such as their health, smoker status, weight or occupation.

If you are able to give me a bit more detail I may be able to help,

regards, Steve

Steve Weisner Dip PFS, BSc (hons)
Independent Financial Adviser
Radcliffe & Newlands
3rd Floor,
14 Bonhill Street,
London
EC2A 4BX

 

IFA Richard says:

Dear Susan,

The first thing I would say is that we don’t know what pension income you can receive from your pension in 2016 as what one can get from a pension fund changes all the time and from provider to provider.

What we can say is that you can take up to a maximum of 25% of your pension fund as a Tax Free lump sum which for Pension 1 would be £2,087.98 and Pension 2 would be £3,039.15, the remaining sums can then be used to provide an income.

As an approximate guide (and as mentioned before, these rates change daily and may not be as high as this at present as annuity and drawdown rates are currently low) the level of annual income derived from the remaining sums can be calculated at around 5% so for Pension 1 it would be £313 p.a. and Pension 2 would be £456 p.a. or a combined monthly income of £64.

Of course this is simplified summary of the pension ‘realisation’ process and in reality as part of a financial review we would ascertain what your exact requirements are, and select the most suitable solution for you to ensure it best meets your needs.

Kind regards,

Richard Rogers DipFA
Financial Adviser
Shepherds Mutual Solutions
Telephone no: 0161 495 6412
Fax no: 0161 428 3666
rrogers@shepherds.co.uk

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