Do we have enough to retire now?

Thrugelmir

Triumph13 wrote: »

Even if we use Terron's very cautious 3.5% drawdown rate

Nothing cautious in the current economic enviroment. Markets may have moved upwards but underlying corporate profitabilty hasn't. Prices are in part being driven by investors chasing yield. While being detached from what they are actually investing in.

Alexland

I agree 3.5pc is looking optimistic in our low growth stagnating global economy and especially if the OP is wanting to start very early. I am expecting to draw down at just under 3pc (1/35th) if things haven't changed by the time I get there.

NineDeuce

No. You should keep working for another 10 years....

IanSt

It does seem a bit tight to me, but then I am a cautious type.

If you are seriously considering this, then although I don't wish to be morbid, you definitely must consider what will happen on the death of you or your partner and how much money the surviving partner will need in their new solo life. It's likely to be a lot more than half of that required for the two of you, and so you'll need to make sure their are enough savings at that point and not have used them up already.

Wizard_of_Id

I retired at 55 on a lot less than you have in your overall pot and only the state pension to come when I get to 67.
People tend to over estimate just how much they will need when they retire. The only big change that I have done is to get a dog instead of having a holiday abroad each year.
I have no mortgage to pay and bought what I plan to be my last car earlier this year and I also got good news from my pension advisor saying that my pot had gone up by more than I had taken out as an income.

Alexland

Well it would likely have gone up by more than you have withdrawn as we have just had some excellent years for uk investors. Thats not to say the investment landscape will stay persistantly excellent for the duration of your retirement.

michaels

cfiresim can probably model a safe draw down annual amount based on your current situation although it is quite complicated for first time users - perhaps ask JamesD for help?

ams25

OP... How is the 300k invested? Would say needs to be at least 50% equities to provide some inflation proofing growth.

4% withdrawal is in my view optimistic. Personally working on around 3% drawdown basis (but I prefer to be cautious).

I echo the thoughts of most others here...it looks tight. I think some cash flow modelling allowing for anticipated and unanticpated capital expenses (house, car, dental, pets etc etc) is needed to see how viable it is.

I would suggest the self employed earnings mentioned could make a material difference so worth re calculating but this time assuming these earnings continue for at least another 5 years to support the plan and provide a bit more comfort.

enthusiasticsaver

It looks tight to me as I think £15k is quite a low amount to live off but I guess if you are used to it then this may work. I would work on 3% drawdown rather than 4% but then I am cautious.

Your husband has 17 years to bridge though and no DB pension. Are you sure you will both qualify for full state pension or will you have years to make up? I thought the quote assumes you will continue working until spa and if you have been self employed does this affect the eventual final figure?

There are positives though in that you may have additional income and that you can downsize to release £100k and you are not worried about leaving inheritance. If you have modelled the withdrawals and are confident re your required income then go for it.

GDB2222

State pension age is quite likely to go up by the time you reach age 67.

It's very hard to find work once you reach age 60+. So, if you need a bit more money set aside to retire, now is the time to earn it.