Pensions Planning: The NUMBER

kinger101

SouthCoastBoy said:

kinger101 said:

Sea_Shell said:

SouthCoastBoy said:

I use 2.5% inflation, next 4 years are currently set to 4% inflation, 1% for cash returns, changed cash to 4% return for next two years and 3.5% for investment returns. I have a spreadsheet taking me up to 100, one row for each year and adjust as necessary 

We are all destined to run out of rows!! 

I have a similar spreadsheet.

Hard to not see your remaining years as rows of financial data 😉🤣😲

I only have another 202 rows to go to state retirement age, but I'm hoping to be able to start using the drawdown columns 60 rows sooner if possible.

That's a lot of rows, I'm a one row per year person. Only 8 rows until SPA.

With hindsight, quarterly would have been easier to track, but it only takes a few mins every month to update, so I can't be bothered to mess around with it now. 

cfw1994

SouthCoastBoy said:

kinger101 said:

Sea_Shell said:

SouthCoastBoy said:

I use 2.5% inflation, next 4 years are currently set to 4% inflation, 1% for cash returns, changed cash to 4% return for next two years and 3.5% for investment returns. I have a spreadsheet taking me up to 100, one row for each year and adjust as necessary 

We are all destined to run out of rows!! 

I have a similar spreadsheet.

Hard to not see your remaining years as rows of financial data 😉🤣😲

I only have another 202 rows to go to state retirement age, but I'm hoping to be able to start using the drawdown columns 60 rows sooner if possible.

That's a lot of rows, I'm a one row per year person. Only 8 rows until SPA.

I’m with you on that.  I know monthly shows more detail, but there comes a time when you need to spend more time doing stuff, not spreadsheets.  & I speak as someone who LOVES spreadsheets!!

Sea_Shell

Another self confessed member of "spreadsheets anonymous"

barnstar2077

There is something magical about a well made spreadsheet.  The way you can change one cell and everything else changes automatically.  They can make you feel like an inventor tinkering with a mad contraption! :  )

LL_USS

barnstar2077 said:

There is something magical about a well made spreadsheet.  The way you can change one cell and everything else changes automatically.  They can make you feel like an inventor tinkering with a mad contraption! :  )

So true ;-).
I still need to remember to explain what I am doing in each calculation I have in the spreadsheet. Sometimes I look at some numbers and have no idea what I was trying to calculate ;-). But yes nice to see how things change when we plug in a new number/ prediction/ target ;-)

LHW99

LL_USS said:

barnstar2077 said:

There is something magical about a well made spreadsheet.  The way you can change one cell and everything else changes automatically.  They can make you feel like an inventor tinkering with a mad contraption! :  )

So true ;-).
I still need to remember to explain what I am doing in each calculation I have in the spreadsheet. Sometimes I look at some numbers and have no idea what I was trying to calculate ;-). But yes nice to see how things change when we plug in a new number/ prediction/ target ;-)

I do sometimes need to look at the equations I've used, to check where exactly I am extracting data from - but yeah, spreadsheets are fun to play with (I should get out more!)

CrickJon

Is there a good spreadsheet model - monthly or annually - where I could input my current pension pot, add contributions each year, growth etc, input living costs etc and model when I may be able to retire, how much I can drawdown, whether I take a lump sum or not and when SP comes in?

I prefer a spreadsheet to a website calculator as they all seem to give different answers and don’t provide annual breakdowns.

barnstar2077

LL_USS said:

barnstar2077 said:

There is something magical about a well made spreadsheet.  The way you can change one cell and everything else changes automatically.  They can make you feel like an inventor tinkering with a mad contraption! :  )

So true ;-).
I still need to remember to explain what I am doing in each calculation I have in the spreadsheet. Sometimes I look at some numbers and have no idea what I was trying to calculate ;-). But yes nice to see how things change when we plug in a new number/ prediction/ target ;-)

Glad I'm not the only one who forgets how my own formulas work if I haven't looked at that spreadsheet recently! :   )

I have taken to breaking complex sums down into different cells, so I can actually tell if the answer is what I am expecting or not.  As well as lots of labels, and even instructions to my future self about what to, or not to, do in order to not break it like I did last time! :  )

MeteredOut

Where possible, I name the cells in my spreadsheet, so rather than =C5*$B$3 its =C5*Assumed_Inflation_Rate.

As well as naming individual cells, you can also name ranges.

LL_USS

barnstar2077 said:

Glad I'm not the only one who forgets how my own formulas work if I haven't looked at that spreadsheet recently! :   )

I have taken to breaking complex sums down into different cells, so I can actually tell if the answer is what I am expecting or not.  As well as lots of labels, and even instructions to my future self about what to, or not to, do in order to not break it like I did last time! :  )

Not just excel, I have a word document where I copied and pasted the essence of some of the calculation/ explanation/ guidance on this forum or elsewhere, that I have agreed with and wished to take on, breaking down by categories such as:
- calculation of pension pot size and TFLS at retirement

- what to ask the pension fund when I wish to draw my benefits (for e.g. maximising TFLS without commuting my investment pot)

- what to do when my investment pot is not subject to flexible drawing down

- when LISA gets better and the calculation that show it is getting better (NI reduced to 10% or 8%)

- ideas for investing ISAs

-.... all sorts :-)

and I update the document as I have new understandings :-). I am quite sure that my future self will not remember all of these.