Growth Rate in Drawdown

Linton

Deleted_User wrote: »

Devils in the detail. Anyone with a good DB pension and paid up house has more than £0.75M. They just bought an “annuity” with it. Lots and lots of people like that.
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You were taking about £0.75M of investable assets. One's home is not normally considered an investable asset. Even most people with a large DB pension probably dont have £0.75M of investable assets. Having what you deem to be unsafe investable assets of £0.75M is way beyond the wildest dreams of the vast majority of the retiring population.

[Deleted User]

Linton wrote: »

You were taking about £0.75M of investable assets. One's home is not normally considered an investable asset. Even most people with a large DB pension probably dont have £0.75M of investable assets. Having what you deem to be unsafe investable assets of £0.75M is way beyond the wildest dreams of the vast majority of the retiring population.

My point is that if someone has a typical DB pension, a place to live and no liabilities, they are far wealthier than someone who has £0.75M of investable assets, no DB pension and has to rent. Even if people with £0.75M do have a paid up house, they are still less well off than a typical retired civil servant without investable assets. And there are lots of people with DB pensions. So saying “few people have £0.75M“ does not actually mean they are rich compared to other retirees.

bostonerimus

Linton wrote: »

You were taking about £0.75M of investable assets. One's home is not normally considered an investable asset. Even most people with a large DB pension probably dont have £0.75M of investable assets. Having what you deem to be unsafe investable assets of £0.75M is way beyond the wildest dreams of the vast majority of the retiring population.

Increasingly people are looking to their houses as sources of retirement income from schemes like equity release. I think people look at their house price and use it to soothe their worries about having an inadequate pension pot. So maybe it should be included when thinking about assets used to produce retirement income.