Sequencing withdrawals when the state pension is still years away
Bridging the gap between finishing work and claiming the UK state pension without draining the wrong accounts first.
Leaving work at 60 while the state pension arrives later creates a bridge that feels abstract until the first year of retirement bills arrive. Cash in a current account feels safe; taxable withdrawals from a SIPP feel complicated; ISA money feels “already sorted.” The order you use them changes both tax and longevity of the pot.
A simple sequencing lens
Essential spending should be matched to reliable income first — rental receipts, part-time work, or a defined benefit instalment if you have one. Discretionary spending is where flexibility lives. Drawing from ISAs can keep taxable income lower in bridge years, preserving personal allowance headroom. Drawing from pensions may make sense if you expect a higher tax band later, or if you want to use tax-free cash carefully rather than all at once.
Mistakes we see often
Taking a large taxable pension lump sum in the same year as a redundancy payment. Ignoring the effect of withdrawals on means-tested benefits for a partner. Leaving too little cash for the first eighteen months and then selling funds in a downturn because the boiler failed.
A retirement income mapping session at Pillar Grove walks through three start dates you choose, so the bridge is visible on paper before you hand in notice.