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Drawdown: safe withdrawal rates
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Indeed, though I don't want it to be too highly controversial which is why I'm discussing what to do in advance and welcome other thoughts that I can ponder using.0
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What's the plan if your "rules" say you can happily withdraw £18,000 pa and you only spend £15,000? Or less?!
Do you just keep the "spare" invested or do you pop it in a "jar" and keep it as extra cash, or would you give it away or donate it...as by the "rules" you don't need it anymore.How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)0 -
jamesd said:I'm planning to update the first post with a guide to income to take while getting familiar with this subject. At present I'm planning to say something along the lines of:
1. take number of years to state pension age and deduct your state pension times that many years from your pot
2. take 6% of the remaining pot plus the state pension income as your initial income
3. do not increase with inflation and do not continue this for more than three years
Taking 6% will be most controversial but because of the lack of inflation increases it'll be safe even if used long term and in the short term it favours what people tend to want, more income at younger ages.
Any thoughts on how better but still very succinctly to get to an income level that's sustainable but intended to be short term during learning?
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jamesd said:I'm planning to update the first post with a guide to income to take while getting familiar with this subject. At present I'm planning to say something along the lines of:
1. take number of years to state pension age and deduct your state pension times that many years from your pot
2. take 6% of the remaining pot plus the state pension income as your initial income
3. do not increase with inflation and do not continue this for more than three years
Taking 6% will be most controversial but because of the lack of inflation increases it'll be safe even if used long term and in the short term it favours what people tend to want, more income at younger ages.
Any thoughts on how better but still very succinctly to get to an income level that's sustainable but intended to be short term during learning?0 -
Sea_Shell said:What's the plan if your "rules" say you can happily withdraw £18,000 pa and you only spend £15,000? Or less?!0
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Sea_Shell said:What's the plan if your "rules" say you can happily withdraw £18,000 pa and you only spend £15,000? Or less?!
Do you just keep the "spare" invested or do you pop it in a "jar" and keep it as extra cash, or would you give it away or donate it...as by the "rules" you don't need it anymore.Plan for tomorrow, enjoy today!2 -
Sea_Shell said:What's the plan if your "rules" say you can happily withdraw £18,000 pa and you only spend £15,000? Or less?!
Do you just keep the "spare" invested or do you pop it in a "jar" and keep it as extra cash, or would you give it away or donate it...as by the "rules" you don't need it anymore.“So we beat on, boats against the current, borne back ceaselessly into the past.”3 -
Sea_Shell said:What's the plan if your "rules" say you can happily withdraw £18,000 pa and you only spend £15,000? Or less?!
Do you just keep the "spare" invested or do you pop it in a "jar" and keep it as extra cash, or would you give it away or donate it...as by the "rules" you don't need it anymore.
You leave it invested as you normally do when spending less. Or you can give it away if you prefer but if someone hasn't yet become familiar with SWRs I'd prefer it if they leave it where it is.2 -
I don't understand the "learning" process that has to take place over a period after starting to take income from a pension. I would expect the learning to take place prior to starting to take income. If somebody has not bothered to consider how much they can take from their pension prior to retirement, why would you expect them to bother once they have started to take an income from their pension?2
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Audaxer said:jamesd said:...
1. take number of years to state pension age and deduct your state pension times that many years from your pot
...2
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