Only freedom will do

ljaneyr

edinburgher wrote: »

Yes, that's exactly what the maths would suggest. With these things, it's important to remain wary as they are just generalisations. While rules of thumb are useful as indicators and to provoke thought, they won't work for everyone.

For example, a lot of people don't feel comfortable taking the full 4%, I've heard of people only taking 2% (or less!) In my circumstances, I'll never earn enough/cut enough expenses to make that viable, so I expect to have a higher rate to help me bridge the gap between stopping work and pensions.

Based on current models, I'd need to withdraw something like 8% a year for 8 years. I fully expect to kill my ISA before retirement

Also, remember that most people don't need a perpetuity, they just need their money to last for a decent length of time until other arrangements kick in. Mrs E and I will have 3+ personal pensions, a tiny Civil Service pension, a hopefully paid off home, ISAs and any passive income we can rustle up (I see no reason why I couldn't do MB or similar until c. 60 years old)...

gallygirl wrote: »

Yes, assuming 0 growth, in reality with 4% growth you'd have a pot of over 300k and be able to withdraw over 12.3k :T and leave the rest to keep growing. You can of course take more early on then scale back as other income comes into play but need to be careful to leave enough in to satisfy future years withdrawals.

Thank you so much for all that info! we're probably the same as you Ed in that we don't earn enough to save that much! I'm thinking about saving a smaller amount per year to provide part of our income in the future. We'd be silly to ignore property with OH being a builder and me keeping an eye on the finances. I would love to own a home mortgage free and then have a couple of rental properties. A holiday let in the south of France would be a dream

We're too far away at the moment with too many unknown variables to plan properly yet but I want to cover all options. I won't be able to open an S&S ISA until our renovation is done so I've got plenty of time for research :eek::rotfl:

Edit: Just wanted to add that I don't mind spending more than the SWR. I watched my gran spend nearly all her money on care home fees before she died and my dad's care would have eaten all their savings if they hadn't been tied up in the house. I would hope to pass on some form of inheritance to my children before I kick the bucket!

Karmacat

edinburgher wrote: »

Sometimes I wish I had a rewarding job like KC, the numbers are not speaking to me today.

Awww :kisses3:
I started off in export finance financing goods shipped from all over the world *to* all over the world, signing letters of credit and buying forward the profit in the currency of origin :cool: you never know what's around the corner :j

misscousinitt

Hi Ed

Loving the pension information - will be digesting and making some plans.

Hope your week is improving.

MCI

Watty1

another one loving the pension updates

gallygirl

Hope you've had a good hump day Ed

edinburgher

Pants, but baby scan shows our girl is healthy and lively

in_need_of_direction

Can't ask for anything better than that

gallygirl

That makes it a good day in my book. Was she doing a bit of with some :money: thrown in?

edinburgher

Definitely the first two GG :coffee:

Karmacat

Lovely! Yep, thats a good day