Quote Originally Posted by BCram View Post
Thanks Rross. I was trying to find a way of means testing state pension. I wonder what the really wealthy get from their final salary schemes. If you retire on 2/3rds final salary based on ?150k final salary you would get ?100k. How much of a fund would you need to earn that if you had to build it up, yourself? Also how much would you need to buy an annuity? Sorry for the questions, but I dont think the problems of pension funds is being properly addressed.
Single life annuity about 7.8% if in good health......but you can get from 8% to 20% if on deaths door.

So a fund of 1 million gets you £78k gross.....roughly

Drawdown you ain't really recommend to take more than 4.5% from fund but to be honest most people do.

The best thing they can do is reduce employers element in public service pensions but that would involve taking on council, teachers, police, fire service and NHS unions.