I am hoping to take early retirement and am considering options for deriving an income.
I have 8 years to go before I can touch my private pension, (20 until I can get my state pension) I expect this to be worth around £200k depending on how the stock market performs (risk) I would also have around £50k in savings by then as well.
What options do I have to use this to fund my retirement? I am not risk averse but have to be sensibly cautious.
I am aware of annuities, but they provide a dismal income (although it is guaranteed) or at best 3%, this is not enough for me to realistically retire on anything like a good standard of living.
I need a minimum of 8% to be "comfortable".
So, are there any other options?
I have considered shares to earn through dividends, buying property to rent out as well as setting up some kind of business, ie property development etc.
I am aware of "peer to peer" lending that appears to average out around 7% so that might be an option.
My thoughts are to put some into shares for dividend income, some into P2P lending and possibly start a business to derive income with the rest.
What other options do I have?