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A bit about Dave
Dave is 65.
He has a yearly income of around £14,000 from a defined benefit (DB) pension (promising a set level of pension based on salary and how long he built up benefits) and his State Pension.
He also has a defined contribution (DC) pension pot, based on contributions and investments, of around £150,000.
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Our advice
Our financial planner advises Dave to use part of his remaining pension pot to buy an annuity to give him a guaranteed income. We shop around and find an annuity that will take his total yearly income up to the £16,500 he needs.
Our planner suggests Dave should use the rest of his pension pot for flexible income by putting it into a drawdown pension and using it to top up his retirement income as and when he needs it. The money will be invested with the potential for growth.
The result
Thanks to our help, Dave has the guaranteed income he needs to cover his essential basic costs, and can dip into his flexible income whenever he needs extra money – for example, for home improvements or holidays. Even if his flexible income runs out in the future, his guaranteed income will continue for the rest of his life.
This is a real-life example, but the name and details have been changed.
Are you ready to maximise your pension potential?
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Personal insight
Go to our Pension Potential hub to get a free retirement pack with personal insights just for you.
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Tailored insight
If guaranteed income (annuity) appeals to you, use the Pension Potential annuity finder to shop around for your own tailored annuity.
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Expert insight
Once you’ve looked into your options, ask for a call with one of our friendly retirement experts.
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