Advice on Timing

LateStarter

pensionpawn wrote: »

Is your portfolio actually growing at just 5%? Maybe you are being too conservative and 7%-8% reflects actual growth better? Why 3% drawdown? Is this because you want to maintain your pot size? If so, why? If that is not an issue then perhaps you can take out more. Will you end up with a pension which is unnecessarily large (paying sizeable tax on drawdown) and working too long for it. Would you prefer to retire earlier?

Just food for thought...

I'm actually stifling a giggle at the moment - I never thought I had a portfolio, and suddenly realise I do. I used the 5% because I really don't know what a reasonable expectation is. I've made what in retrospect was a mistake and focused on the mortage, while putting in the minimum into my pension, so I only started looking at retirement at around the turn of this year. My entire pension pot is in the company pension fund (L&G Gbl Eq FW 60:40 Index Fund). For the last 5 years it's performance has been 3.9, 2.6. 20.4, 14.1 and -8.2% - which averages to 6.5%. But we're moved from that to a new scheme which allows drawdown flexibility etc, so I have no clue how that will perform. I opened a SIPP last month and will look at putting extra cash into that.

The 3% drawdown is partly to play it safe and mainly for wealth preservation - my OH has a disabled daughter and I feel responsible for providing for them when I'm gone. The information I could find suggests that a sustainable figure is between 3 and 3.5%. I'd really love to be wrong, of course, and find myself free sooner than expected. Maybe I am being too conservative in my estimations, but I'd rather be elated than disappointed (I am very new to this pension planning lark).