Background
Our client is aged 65 and was retiring immediately.
He had both Defined Benefit (DB) and State Pensions in payment giving him c.£1,550 net income (approx. £20,000 gross), and outgoings of £600 per month. He also had one Defined Contribution (DC) pot valued at c£60,000.
The client had decided he would like to take his entire fund as cash as he had sufficient income and an annuity of c.£200 per month would be taxable and would not change his lifestyle.
He also wanted the lump sums to fund large luxury expenses in his retirement such as travel and large-scale entertainment.