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Pension planning

Sunbeam25
Posts: 21 Forumite

I need to guesstimate the value of a pension "pot". I think it's a " "how long is a piece of string" type question, but the number I've come up with is £450 per month for a £100,000 pot.
A few facts and assumptions:
Normal retirement age
Married
Good health
Survivor gets 50%
It's just to get an idea, does that figure sound reasonable?
Ta !!!
A few facts and assumptions:
Normal retirement age
Married
Good health
Survivor gets 50%
It's just to get an idea, does that figure sound reasonable?
Ta !!!
0
Comments
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I did want it inflation linked and the best offer came out at £220 so I was way off. That calculator is excellent, thanks.0
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This chap has a lot of interesting stuff about how quickly, and how best, to draw income in retirement.
http://wpfau.blogspot.co.uk
Also, consider this:
"The figures and tables on the following pages show the 30 year portfolio survival rates for real withdrawal rates of 3%, 4%, 5%, 6%, and 7%, with the portfolios varied over the feasible set in increments of 10% in each dimension.
At a 3% withdrawal rate the 30 year survival rates are very good. The maximum survival rate of 98% is achieved by a number of portfolios. All of the optimal portfolios contain at least 20% cash, at least 20% stocks, and at most 40% bonds. Note that asset allocation makes a big difference. For example, an all bond portfolio has a survival rate of only 83%, and an all cash portfolio has a survival rate of only 84%.
At a 4% withdrawal rate the 30 year survival rates are considerably less attrac- tive than they are at 3%, but still not bad. The maximum survival rate drops from 98% to 88%. The optimal portfolios contain at most 10% cash, between 20% and 40% bonds, and at least 60% stocks.
At a 5% withdrawal rate the maximum survival rate drops to 75% and the optimal portfolios are almost all stocks – at least 90% of the portfolio must be in stocks to achieve this survival rate.
At the 6% and 7% withdrawal rates the maximum survival rates drop signifi- cantly – to 63% and 51% respectively. In both cases the optimal portfolio is all stocks."
Source http://www.norstad.org/finance/aasurvival.pdf
N.B. they are "real" withdrawal rates, so you can add on your expected inflation rate to see the "nominal" withdrawal rates. On the other hand, his assumptions might seem giddily optimistic today.Free the dunston one next time too.0
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