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Pensions Planning: The NUMBER
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It really is very easy to get a quote, but somewhat annoying that I couldn't see what would happen if I stopped working at 60. :think:
Presumably you have already got your 30 years in under the new rules, so entitlement to the basic would not be affected? If so the impact would just be on S2P, are you getting much from that under the old quote?
Of course you can request a new quote if/when you stop work at 60.Trying to keep it simple...0 
Charterhouse wrote: »in 2530yrs time I hope to be looking at:
£750k drawn down at approx 8% a year to provide £60k a year
Where do you get 8%? The maximum drawdown rate is based on the mandated Goverment Actuary Department 'GAD' figure. This is variable and is compulsorily reviewed after 5 years after you initiate drawdown and is based on long term gilt yields I believe, it may also depend on age (not sure about that). Last time I looked it was about 6%.0 
http://www.hmrc.gov.uk/pensionschemes/gadtables.htm
GAD tables are here.They are based on 120% of the annuity rate, so 8% will not be unrealistic.
Useful quick calculator
http://www.invidion.co.uk/pension_fund_withdrawal_calculator.phpTrying to keep it simple...0 
Given a drawdown of 8% and an investment return of 5% that should last me virtually 20 years. If I live longer than that I can downsize the house or rob my children.
[e] Plus, in all seriousness, I'm going to draw it down slower after a bit of time. I want to make sure that my 5570 years can be spent pretty comfortably, but after that it will become a lot less important and the drawdown can slow substantially.0 
EdInvestor wrote: »Presumably you have already got your 30 years in under the new rules, so entitlement to the basic would not be affected? If so the impact would just be on S2P, are you getting much from that under the old quote?
Of course you can request a new quote if/when you stop work at 60.
went back on and had a proper look  you can input various scenarios. Ed, yes, I will have the 30 years (£95.25) and the difference for S2P is around £14 a week, so that wouldn't put me off retiring early. Now I just need to work out how to fund an extra 5 years......A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effortMortgage Balance = £0"Do what others won't early in life so you can do what others can't later in life"0 
Sorry if this is in the wrong place. I have my latest statment that tells me how muchi will get when i retire (approx estimate) in todays money terms. EG £10000 a year no lump sum. Is there a calculator i can use that will tell me how much if i increase my contributions by say 5% each year and assuming a 5% growth each years also.
Thanks0 
zygurat789 wrote: »But do all your figures above relate to an individual or a couple?
Sorryfor late response...
The figures are generally based on the NUMBER for a couple... but no problems with letting us know a good number for individuals.
Economies of scale help though!THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)0 
All this extended life expectancy coupled with an expection for early retirement is making for sobering reading.
Our number is a conservative 27.7k in 2016, at 49 years old. With 3% inflation, this means we need:
£44.5 PA at 65
£93.2 PA at 90!
My son states that we shouldnt worry, as he will arrange for a trip to Switzerland, when the cash runs out!0 
The average NUMBER now stands at £27,500
With a Drawdown/Annuity rate of (say) 5%, this means you would need
a pension fund of £550k
Food for thought eh?
Assuming this can be divided equally between a couple it is £13,750 net to achieve this, assuming all income is taxable, it would require a gross income of £14,812 each. A tax free income from an ISA of £5,312 would eliminate this tax liability. This could be achieved by an ISA of between £170,000 & £100,000 or between 33 & 20 years of maximum allowance savings. It would, therefore, be wise to include a tax figure of between £500 to £1000 in your number, after all it's one of the more certain expenditures.
If you assume that the average state pension/serps income is £7,500 each then there is only £7,300 each, £14,600 jointly to fund. At your above figure of 5% would need a pension fund of £146,000 as an alternative to the ISAs above.
I reckon this is between £3,000 & £5,000 pa over 20 years or £1,500 & £2,500 pa over 30 yearsThe only thing that is constant is change.0 
On the negative side, if you want to match inflation the Annuity rate would be about 3%. So taking both into consideration you need a pension pot of about £420000 in today's money, or about £0.75M in 20 years time with inflation of 3%.
Once you have set your target your savings should be calculated as a percentage of gross income, in future, so long as this percentage is maintained (thus effectively increasing the annual savings) the pension pot will still provide a pot sufficient to provide since wages increase faster than inflation.The only thing that is constant is change.0
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