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It's time to start digging up those Squirrelled Nuts!!!!
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Sea_Shell
Forumite 4.4K posts
Hi Everyone and welcome to my new thread.
Original thread can be found here... https://forums.moneysavingexpert.com/showthread.php?t=5631875
As you may know, DH has already finished work and I am also due to finish in 3 weeks time :j:j. We hope that our FIRE pot is now enough (our IFA seems happy!)...and so I have made the decision to jump too!!!!!
This is going to be the next adventure, so if you want to watch us crash and burn, subscribe now!!! - Seriously, though, we are confident we've got our figures right for our circumstances and we'll have a comfortable retirement. Our idea of comfortable, would be spending approx £15k-£20k pa. We currently average about £13k pa spends.
Anyway, some numbers....
As of today our total FIRE pot stands at....£536,129. This is made up of...
DC pension pots - £303,729
S&S ISAs - £133,648
Fixed term cash - £69,715
Easy access cash - £29,037 (net of stoozed CC balances)
Will will also have SP's (eventually) which we'll look to pay-up to max nearer the time (i'm 3 years short), plus DH has 2 DB pensions due to start paying in approx 12 years of c. £8300 in today's money (indexed).
I look forward to your company. :beer::beer:
*** Update, for anyone new to this thread - as at end of December 2020 ***
Current pot total....£597,660.
That's an overall annual growth rate of 8.3% gross (6.28% net of spends)
DC Pensions - £345,014
S&S ISAs - £169,188
Fixed term cash - £59,237
Available (net of cc) cash - £24,220
Original thread can be found here... https://forums.moneysavingexpert.com/showthread.php?t=5631875
As you may know, DH has already finished work and I am also due to finish in 3 weeks time :j:j. We hope that our FIRE pot is now enough (our IFA seems happy!)...and so I have made the decision to jump too!!!!!
This is going to be the next adventure, so if you want to watch us crash and burn, subscribe now!!! - Seriously, though, we are confident we've got our figures right for our circumstances and we'll have a comfortable retirement. Our idea of comfortable, would be spending approx £15k-£20k pa. We currently average about £13k pa spends.
Anyway, some numbers....
As of today our total FIRE pot stands at....£536,129. This is made up of...
DC pension pots - £303,729
S&S ISAs - £133,648
Fixed term cash - £69,715
Easy access cash - £29,037 (net of stoozed CC balances)
Will will also have SP's (eventually) which we'll look to pay-up to max nearer the time (i'm 3 years short), plus DH has 2 DB pensions due to start paying in approx 12 years of c. £8300 in today's money (indexed).
I look forward to your company. :beer::beer:
*** Update, for anyone new to this thread - as at end of December 2020 ***
Current pot total....£597,660.
That's an overall annual growth rate of 8.3% gross (6.28% net of spends)
DC Pensions - £345,014
S&S ISAs - £169,188
Fixed term cash - £59,237
Available (net of cc) cash - £24,220
" That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
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Replies
If you just lumped everything into a pot and drew 20K pa it would last 26 years. without knowing how old you are, I don't know if that would be enough.
But in 14 years time, the amount you need to draw from the pot goes down by £8300 to 11700. So in those 14 years your pot has gone down from £536K to 256K and drawing £11700 pa from that it will last another 21 years. So that is already up to a total of 35 years.
Then there is the state pension. In the region of £15K for both of you. So if you really only need £20K pa then your DB pensions plus state pensions is enough for you. So arguably your pot only has to see you through to state pension age. Anything else is a bonus.
And all that assumes it sits in a pot earning nothing, so again it should do better than that.
P.S.
What does "DH" mean? I am familliar with "OH" for Other Half, but DH eludes me.
This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
TBH we've kept it all quite simple and not chased returns with complicated portfolios.
The real fun will start in 2 years time when DH moves his DC pensions into drawdown...sooo many options/platforms/funds to choose from. Expect many questions!!!
This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
Wish our spending was so low, annual trips to Disney cost us a lot, which at least for this year we are not willing to forgo.
Plus I can't convince my oh that we don't need an expensive TV/sport/ broadband package.
Was just looking at your figures. Are you going to pay the £2,880 into a SIPP, or does the size of your DC pot make not as worth it?
Good luck.
However DH isn't, as our plan is to get his whole pot out tax free BEFORE his DB pensions come into play.
Most of this money will get reinvested into our ISA's to be drawn at our leisure (tax free), unless we spend too much!!!
This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
Just wondering how old your DH was if there is still 14 years to wait for these db pensions.
Refreshing to see the thoughts on here. I am nearly two years into drawdown and have a pot of £740k. The OH has a dc fund of £150k, but has 3 years to go yet before she can drawdown.
There has never been an exact figure how much we could take out each year. I suppose that's being a dc pot with market ups and downs to consider. Without hijacking this thread, how much should we could we take out. I have 10 years to go to SP with 3 years still to pay up for max. OH has 17 years before SP. Again sorry for hijacking.
We are in a different position in that my DH has a very good DB pension which comfortably covers our outgoings with mine topping it up to maybe pay for an additional holiday each year. We are spending on the house though and that is working out expensive but should settle down next year to just decorating which will be cheaper than new kitchens and bathrooms. Our IFA has "lifestyled" us though and worked out we can withdraw £20k a year from our investments until we are 99 before it will all be gone! Luckily we wont need to withdraw anything like that.
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Sorry that was my typo, it's actually only 12 years!! (have edited OP)
This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
One difficulty with drawdown planning is spending variability. It's easy enough to do a budget for regular items like food, utilities and taxes etc, but irregular large costs are often missed. You need to have a plan to replace your car, do major home renovations and the worst one of all, pay for long term care. So if your budget is 20k could it stand to be 30k or 40k for a couple of years when you need to buy a new car and replace your central heating?
Of course regular spending does decrease as people age and become less active, but then there are often large costs in the last years as help is required with aspects of daily life and maybe a care home stay. This wasn't much of a worry 30 or 40 years ago, but current government and local authority funding and policy means that it must be considered today.