On the housing ladder and i cant be more depressed

economic

chucknorris wrote: »

When I started thinking about what multiplier was appropriate (for me) to use, I started with thinking about annuities, but obviously the seller of annuities take admin costs and profit out of that. So I ended up (roughly) basing it on what I think the drawdown rate would be on my portfolio. I can't pretend that it is very scientific, it is just my best hunch, but I wanted to value both my DB and state pension, to help me evaluate the correct balance of assets for my retirement portfolio.

For fixed rate annuities and no guarantees, current market rate is roughly 4.7% for someone who is 60.

I would have thought you would need to apply a lower multiplier (higher rate then 3.5% & 4%) if you wanted to be conservative about drawdown, as you are putting a value to your assets (specifically the annuity you receive)

chucknorris

economic wrote: »

For fixed rate annuities and no guarantees, current market rate is roughly 4.7% for someone who is 60.

I originally considered index linked (which my pension would be) and at the age of 65 (which would probably be just over 3%). But as I said annuities are not the same as drawing down your own portfolio (no admin costs and profit lost to the annuity company), so I considered my (subjective) drawdown was more appropriate for me to use, and went somewhere in the middle between the 2 (annuity and personal drawdown)