If I retire in 20 years time....

LEP

......aged 60 with a pension pot of about £375k and take 55k cash roughly what can I can expect as an annual income from the remaining £320k?

Thanks

atush

How are we to know what will happen in 20 years time investment/interest rates wise?

but as a general rule is that people DD abt 4-6% of their pot annually- usually the higher as that it today's GAD rate. The remainder is invested still to keep growing. so 12.8K to 19.2K approx. I would say the higher.

Annie1960

It will depend on annuity rates at the time, and I don't think anyone can tell you what they will be.

A current example would be about 5% (but you need to shop around, it can make a big difference).

At 5% of £320k your annual gross annuity would be £16,000. However, this could be completely different in 20 years' time.

If you are not in perfect health at the time you retire, you may be able to get an 'enhanced annuity' which will give a better rate.

CLAPTON

if you want an indexed linked income at 60 years old then think about 2.5% of the amount as an annual income
you might get 5% flat rate but you might live 30 years and no index linking is a huge risk

LEP

Thanks for the replies. Gives me a rough idea.

atush

6% is todays flat rate and closer to 3% is the indexed. This will change but as today's rates are historically low I would consider planning with them to be statistically safe.