I have a pension worth around £150k and am due to retire soon. With the new pension rules in the UK, what would be some good options to maximise my income post-retirement?
Annuity - I will be retiring early, so annuity rates are poor due to my age, I would only get around 4% return per annum, or about £6k income per year. I could continue working for a few more years paying in more to the pot and would then get a better annuity rate as I would be closer to death, but I don't really want to do this!
Property - I could withdraw the cash (or a portion of it) and buy property to rent out. I can buy a small house locally for about £40k and that would return around 10% annually, net. However, I would have to pay tax on the lump sum, but I am not sure exactly how the tax is calculated.
Would buying a holiday home abroad be more lucrative? I kind of like the idea of buying somewhere in France or Italy, maybe Spain as I could then holiday there when it isn't being rented out at reduced cost.
Are there any other areas in the UK that would return rental yields much above 10% net?
Shares - I could withdraw the money and buy shares for the dividend income, but it is hard to choose shares that yield more than about 6% and they are volatile.
Invest in fine wine, art etc - I don't have any specialist knowledge of these kinds of things so it's probably not something I'd want to invest in.
I have other modest forms of income to support myself that will continue even after I retire and no debt, but I would like as high an income from the pension fund as possible. I own my own home so no mortage/rental payments come out of my income/savings.
I am quite fit and healthy so hoping to live for 20 years plus after retiring.
Any ideas welcome thanks.