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Pensions Planning: The NUMBER
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Good food for thought...
Cannot spot anything major missing.
I am putting aside £4k pa for "Capital Replacements/works"
This could also include a new bathroom if the funds allow.
We plan to spend some each year but anything left is carried over to the next year, so we will build up a reserve for larger items like car replacement.
a good idea either way and got me thinkin again
many thanks gatser
Thanks Maggieann
Yes...we have been following that routine for some time and it has worked well, so we will continue into (semi) retirement era with it...probably with smaller numbers!
Hopefully not to be replaced every year. We are hoping that when we draw the pensions those things will be included. Hopefully not too many times, lol.
Based on the average life expectancy I have achieved the annual saving required to fund the above items would be £950. Just work out your annual required savings from your expienced life expectancy of the various items
this is what i was trying to achieve!
it all becomes even clearer now.
better get doing some sums!
thank goodness for this forum and its forumers!:T
Oh....
Drawdown or Annuities?
I just cannot see why anyone would choose the latter...but happy to be persuaded otherwise...
The way my strategy is looking is that I will drawdown the maximum amount in the early years of retirement, whilst I am still active, and reduce the amount I drawdown as I get older, the State pension should kick in about 12 years after I start so that will boost income and reduce my dependency on the drawdown pot and maintain my standard of living. Has to be better, and make more sense, than getting a derisory annuity at 55.
Under current rules, no-one has to buy an annuity at 55 and not many would as it doesnt make sense until you get into your 60s. Although, the end of forced annuitisation is so much a hope now but a reality from next April. Not unless the ConLib Govt take the same view as Labour and decides that people are incapable of deciding for themselves and sticks silly rules in place.
Rather unlikely, don't you think? No Government could have such a contemptuous view of human beings than Labour, which is ironic seeing as how they have always professed to be the caring party.