Income Drawdown Pot - Dilemma

zagfles

Linton wrote: »

Yes, but that gives you very little opportunity to drawdown and use the capital before you go. It seems a pity to die with £1M capital in the bank unless you really want to leave a very large sum to your descendents/relatives/friends. In fact it would probably be a lot more than that as if the 4% is "safe", the probability is that your capital will increase over time.

It's 4% increasing with inflation, so your capital is only going to grow if your investments are growing at 4% plus inflation, which is pretty optimistic.