Mike
£1000000 will generate at todays interest rate after tax approx 3.5%
thats 35k in the first year and 35k each year thereafter depending on interest rates. Perhaps what you mean is getting your mitts on the actual capital in the pension fund.......well of course you cant do that beyond a potential 25 % cash when you start your retirement.
As I was saying 1 Million in a fund perhaps a SIPP will create in interest around 35 k per annum after tax Pro that up or down I just made up 1 Million to keep the maths simple.
As has been pointed out if you go the annuity route.once you kick the bucket the nasty horrible evil insurance company which is also probably charging you a fee every year...takes what is left !!!!!!
(What you are forgetting is where does the money come from to pay the local authority workers in the first place and therefore who is paying for their overblown guaranteed pensions. LO workers now want to be able to retire at 50 when uncle Tony wants the rest of the population to work on till they die! )
On the other hand if you are using growth rates used by the actuaries....then you can arrive at any income you like. As we know the stockmarkets can go both ways .....I was dealing with certianty .not speculation.
And the pot I was talking about was in relationship to national insurance....the government do not have a pot. They've spent it ! As for the pot for LO workers perhaps Gordon should raid that...................sorry I shouldnt say that........ I might give the gormless jock ideas.
Barry
