Retiring at 55

kangoora

I'd retire immediately given those figures and that income requirement.

sheslookinhot

cfw1994 wrote: »

With a 'draw down pension pot', I assume 25% can be taken as TFLS by the OP to provide for that.....& that can also be used to try to avoid the sequence of returns risk.

Indeed, that risk is perhaps the greatest for anyone planning to retire in the next couple of years, I suspect. & I include me in that list :eek:

sequence of returns risk- can someone explain the meaning of this phrase.

Cheers

Anonymous101

kangoora wrote: »

I'd retire immediately given those figures and that income requirement.

Absolutely. I’d retire at any age given those numbers.

JoeEngland

sheslookinhot wrote: »

sequence of returns risk- can someone explain the meaning of this phrase.

Cheers

https://www.investopedia.com/terms/s/sequence-risk.asp

Triumph13

I would a) retire and b) plan for a much more sensible level of income from that stash. You clearly want to be very cautious in your assumptions so how about this. You can take £212.5k of your £850k pension tax free leaving £637.5k for drawdown. Lets round that second number down to £600k and plan to take a cautious income of 3% from it or £18k pa. That gives you £17k post tax now and £37k post tax once all the SPs and DBs are on line. Filling in the gap until they are on line takes £205k of your TFLS. This bridging portion would be invested relatively cautiously aiming to match inflation.
If even a 3% withdrawal rate feels scary, then lets play it really safe and take 3% of actual value each year rather than an initial 3% rising by inflation each year. That way the money can never actually run out completely. What happens if we get a mega crash and your portfolio value is halved? Then you have to reduce your spending down to the £28k level that you've already said you are happy with.
Time to retire!

[Deleted User]

I would buy myself a farm with a pond, get some sheep, perhaps a few ducks too, put up a couple of beehives, make mead...

Sorry, but you did ask.

JoeCrystal

Albermarle wrote: »

I agree . Xmas would be the last time I would plan to retire as first month not working would be January . Bit depressing......

I agreed. If it were me, I would have retired just before April, so I got late spring and summer to look forward to and making sure that my tax affairs are straightforward in the new tax year.

frugal90

Retire and take a so holiday in Jan.
I fact Jan can be quite nice as you are able to get out and about during the daylight. Just dress for the weather.
Life is too short.
Stop dithering and go enjoy yourself

MrDinosaur

Sorry might have put that across wrong. I have calculated a growth of the said £600k as 3%. But taking £28k as drawdown. Which is around 4.5%. Would this change your thoughts.

cfw1994

sheslookinhot wrote: »

sequence of returns risk- can someone explain the meaning of this phrase.

Cheers

JE gave a good link to explain this.
https://monevator.com/sequence-of-returns-risk is perhaps more wordie, but does lead to an example where you see the effect of the risk in action (& is a pretty useful site in general!)

MrDinosaur wrote: »

Sorry might have put that across wrong. I have calculated a growth of the said £600k as 3%. But taking £28k as drawdown. Which is around 4.5%. Would this change your thoughts.

Perhaps re-read Triumph13’s post, #16.....