Done IT- is the pot big enough

michaels

Just checking, is the 2.5k net your own or household required income? Do you want this to remain constant (index linked) including state pensions (so once you are both 67 you get 1300 SP and only need 1200 from your pension savings)?

How about when one partner dies?

k6chris

ex-pat_scot wrote: »

Certainly a 30% drop is a buying opportunity...

..so long as you have some non-equity assets (such as cash) with which to take advantage. If you (or anyone) already has the vast majority of their funds in equity, there is no such opportunity. Far from clear that bonds and shares are un-correlated too.

Cash ready to take advantage of such an opportunity anyone?? (or is that sub-optimal in the long term????)

Anonymous101

k6chris wrote: »

..so long as you have some non-equity assets (such as cash) with which to take advantage. If you (or anyone) already has the vast majority of their funds in equity, there is no such opportunity. Far from clear that bonds and shares are un-correlated too.

Cash ready to take advantage of such an opportunity anyone?? (or is that sub-optimal in the long term????)

I don't necessarily agree with that.
To my mind so long as one is still purchasing equities any kind of market contraction is an opportunity.

TBC15

Any reason the OP shouldn’t put the max into a SIPP this year? Last chance for free cash.

jennyjj

AndyAdams wrote: »

Well that's it, confirmed I am finishing work at the end of month.

Nearly 53 got a pot of around £800,000,

Any thoughts?

Congratulations. Never look back.:j:j
The numbers look eminently comfortable.
It is a bit of a weird transition stepping from 'on salary' and on to drawdown and spend savings.
I keep a spreadsheet of liquid assets by type by week, Eg bank accounts and shares down the side and weekend dates along the top. Update it weekly
Over 12 months, there were dips of up to about 18K which made me feel uncomfortable for a while, but I now have a 'bankroll' that is actually up from where I started. I reckon you get into a habit of being a bit frugal.
You might find https://www.retireeasy.co.uk helpful. I understand there is now a modest charge for it, but worth a short term subscription to 'model' your future finances.

Chillax. Expect your spouse to join you in retirement, sooner rather than later.

AndyAdams

Everybody, thank you for your responses. All very helpful. To answer a few questions I have been asked.

The 34 years includes this tax year I appreciate the pension forecast tool only forecasts up to 16/17 tax year, so states two years although it is only one year outstanding.

The £2500, is total household income, and will need to be index linked for the next 4 or 5 years then I expect this to decrease to around £1900 to £2000 mth in today's terms until 70ish. Then as we reach mid to late 70s around £1700 in todays terms.

I would also need to buy 3 to 4 cars in this time (2nd hand plan to pay around £8k in today's prices, hopefully it will last for 7 or 8 years)

We both have life insurance up to age 60. Also I would recieve a reduced db pension from my wife's pension providers. She would inherit my pension pot. The ISAs are split 50:50.

Thanks all

kidmugsy

In the name of squeezing as much as possible out of your money I'd try two of the wheezes recommended above: (i) work part-time for a couple of years to exploit your Personal Allowance (while paying a NIC), and (ii) maximise your 17/18 pension contributions. I'd also consider the case for using some of the ISA money to make pension contributions for your wife: the money will become accessible again in only five years time.

TBC15

Once you have maxed out your SIPP contributions for yourself this tax year and the wife’s for the remaining years she will still be working for, don’t forget you can still contribute £2880 and get £720 free from the tax man if you are not working.