Would you retire on these numbers?

hugheskevi

Couple of other thoughts on this.

With any strategy involving decent amounts of investment risk, it is worth considering whether the strategy is sub-game perfect.

By that, I mean if Firecalc and other tools suggest a strategy is 95% certain to work before it is implemented, how confident would you be remaining aggressively invested after a big market fall? You might 'know' that markets are likely to recover, but there are no guarantees, and you are at that stage getting dangerously close to not having any excess over baseline consumption to afford to lose. It is also a lot easier to readjust to shocks prior to retirement than afterwards, not least as extra money is being invested so you are buying cheap, whereas in retirement you are drawing down capital so you would be selling cheap. If in practice you might be tempted to de-risk as your capital cushion was eroded then that needs to be built into the assumptions.

As a rather different approach, I've sometimes thought using public sector pensions to annuitise a pension pot. Simply get a job at any level, transfer in a personal pension, then leave - the normal 2 year vesting period is normally not relevant when transfers-in are involved, and the pension pot has effectively been used to purchase an index-linked annuity. The extent to which that is optimal depends on transfer-in terms, but given the woeful index-linked annuity rates it is something I'd consider. Before the demise of final-salary schemes and lowering of Annual Allowance, I also wondered about taking a low-level public sector job at some point in my 50s, transferring a lot of pension in, and then aiming to get promoted rapidly to double or more the pension pot

Bootsox

OP, have you accounted for income tax/CGT in you calcs?

ermine

You are over thinking this. As am I - I have more that the limiting case. Even if my house were worth now't and my stock portfolio went AWOL and never came back again.

You can't hedge the extreme tail risks - a societal collapse where money loses value, that's down to what you know, who you know, and where you are, and the luck of the draw.

I'd jump, because I did. Because they ain't making more time. You're running out of it, 24 hours every day.

Life's too short to work for The Man any longer than you have to...

bigchipper

hugheskevi wrote: »

Before the demise of final-salary schemes

Too late I suspect, I think new starts are put on CARE type schemes.

Batchy

I assume you are all thinking this is before state pension of 8k per annum also, I consider this will cover most bills... with my pension to pay for my lifestyle.

jamesd

Yes, I considered tax and the state pension income. Batchy, yes, my core bills and basic food could be covered by the state pension when it starts.

I concluded that it's too soon for me to stop working for a range of reasons, notably that my work is far from unpleasant and that I'd like more accommodation and/or retirement in a different country options.

What I've done in part is have a chat with my employer's HR people about a change to rules that will help me to get to putting £40,000 into the work pension by salary sacrifice next year and ongoing until I do stop work. Part of this is from income, part of it is moving money from non=pension savings and investments. Well, all from income since it's salary sacrifice, but it's to move money.

bilbo51

rodent wrote: »

Obviously you are working on politicians understanding of costings !!
Here is mine:
Food £5000
Ctax £1800
Car Ins £400 Fuel £1500 Tax £200 Depreciation £1000 Mot/Works/tyres etc £200 (Tot £)3300
Gas £1200
Elec £700
House ins £300
House mainteance/repairs £1000
Tot £13300

I wont be able to have cake !!:rotfl:

You don't need water?