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Drawdown: safe withdrawal rates

edited 14 April 2021 at 8:35PM in Pensions, annuities & retirement planning
228 replies 90.1K views
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  • westvwestv Forumite
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    Agreed, should be made a 'sticky'.

    I guess MSE Towers don't agree.
  • jamesdjamesd Forumite
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    The current way they want things to go is to have just one sticky with links to other threads inside it. I think that the idea in part is so that the sticky threads don't fill all of the initially visible rows, forcing people to scroll to get to the new threads.
  • BobQBobQ Forumite
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    James,

    Thank you for taking the trouble to collate all this.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • ThrugelmirThrugelmir Forumite
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    I don't think that it's fair to conflate those two (as the main cause for a poorer generation). Surely the death of DB pensions will be a far greater factor in terms of future generations being less well off? A few decades ago, every FTSE100 company had a DB pension scheme, now there are 2-3.

    People still made sizable employee contributions to the schemes. One scheme I was a member ( mid 90's) had employee contribution levels of 9%. They weren't simply funded by employer contributions. How many people now save 9% of their salary into personal pension plans? The emphasis has changed for people. Party now and worry pension provision later. Bigger and more expensive housing. Better cars. Long distance travel. All down to personal choice.
  • bigadajbigadaj Forumite
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    Thrugelmir wrote: »
    People still made sizable employee contributions to the schemes. One scheme I was a member ( mid 90's) had employee contribution levels of 9%. They weren't simply funded by employer contributions. How many people now save 9% of their salary into personal pension plans? The emphasis has changed for people. Party now and worry pension provision later. Bigger and more expensive housing. Better cars. Long distance travel. All down to personal choice.

    That level of contribution would have been unusual then, not so much now.

    We can look at the approximate cost of a db scheme being a round 25% of salary which still means the company is contributing far more than most would do to a DC scheme.

    Many peoples approach has not varied that much and certainly not in the also two or three decades. It's the fact that db schemes have been closed everywhere apart from the public sector, and significantly diluted even in the latter.
  • edited 24 July 2016 at 8:30PM
    jamesdjamesd Forumite
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    edited 24 July 2016 at 8:30PM
    I've added this:

    Non-essential interesting material
  • mozza78mozza78 Forumite
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    Can I just say thanks for a very very useful thread!
  • jamesdjamesd Forumite
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    I've added a link to another cfiresim worked example:

    Thoughts on my plan please retiring 59, £9500 defined benefit pension, 8k assumed state pension, £275000 investments, desired income £2000 a month, £2250 looks possible.

    I've also added a worked example of how to use the 4% rule to calculate approximate monthly pension contributions needed to get to a given target income at and before state pension age.
  • simonfitbasimonfitba Forumite
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    Appreciate the effort jamesd. Top work fella. This will help a lot of people.
  • westvwestv Forumite
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    Regarding state pension deferral, is there still much point in doing this if you are married? If retiring after April 16 your spouse no longer inherits any increase so if you were unlucky enough to die before drawing they could end up with a smaller pension pot, if you have used drawdown to fund the deferral, and no benefit.
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