Carl Lamb, managing director of Almary Green Archant Our reader this week wants to know the best way to take her retirement income - all at once, as an annuity, or a mix of both? Carl Lamb of Almary Green responds. I’m in my early 60s so am due to get my state pension from age 66. I have built up a private pension fund of about £120,000 and am wondering what might be the best way for me to take my retirement income. I understand I can take it all out of my pension at once and not buy an income for life but just invest it and live off the investments. Is that right?Response from Carl Lamb of Almary GreenWhen you are getting close to retirement, it’s a really good idea to get advice about how you will manage your retirement income as the rules are quite complex these days. There are three main routes you could follow with your private pension fund.Firstly, you could, if you so wish, take all the money out of the fund. The most important thing to remember … [Read more...] about Ask the Expert: What’s the best pension option for me?
Annuities age 75 rule
Americans aren’t terrific at saving for retirement. Many are even worse when it comes to figuring out how much to spend once they get there. An actuary who’s studied the issue for three decades recently proposed a relatively straightforward strategy that can help. In its simplest form, the “Spend Safely in Retirement ” plan suggests waiting until age 70 to claim Social Security and using the IRS’ required minimum distribution table to determine how much to withdraw from savings each year. Even those who stop work earlier can use the strategy, or a version of it, to figure out when they can afford to retire and how much they can spend, says Steve Vernon, a research scholar at the nonprofit Stanford Center on Longevity in Stanford, California. Vernon worked with the Society of Actuaries to study nearly 300 different retirement income approaches. The strategy was the best way for middle-income people with $100,000 to $1 million saved to create an income … [Read more...] about How not to run out of money in retirement