lifetime pensions allowance

beeza650

Croeso69 said:
Why don't you ignore inflation and work in today's money terms? Makes the spreadsheet a lot simpler I think.

You mean factor inflation into the fund growth so drop it to 2.0% lets say and not worry about inflation anywhere else?

Croeso69

beeza650 said:

Croeso69 said:
Why don't you ignore inflation and work in today's money terms? Makes the spreadsheet a lot simpler I think.

You mean factor inflation into the fund growth so drop it to 2.0% lets say and not worry about inflation anywhere else?

Yes, so ignore increases to LTA, contributions, state pension etc.

UKPnAccel

What is a reasonable percentage per annum to estimate fund growth?

Croeso69

UKPnAccel said:

What is a reasonable percentage per annum to estimate fund growth?

How long is a piece of string?

Who knows, I err on the side of caution using 1% above inflation. Once I push the retirement button there is no going back, so better safe than sorry with a cautious assumption to see when I can safely do it..

UKPnAccel

Thanks Croeso,
I understand the variability and the caution. So, anything above, say 3%, should be seen as a lucky bonus? *grin*

Croeso69

UKPnAccel said:

Thanks Croeso,
I understand the variability and the caution. So, anything above, say 3%, should be seen as a lucky bonus? *grin*

Possibly, who knows!

Albermarle

UKPnAccel said:

Thanks Croeso,
I understand the variability and the caution. So, anything above, say 3%, should be seen as a lucky bonus? *grin*

Over the last 10 years , 3% above inflation would have been a disappointing result . Even middle of the road/medium risk portfolios were more in the region of 5% above inflation and any higher equity global portfolio even better .
Predicting ahead is difficult of course but there seems to be some kind of consensus that the next ten years will be less productive. So zero to 3 % above inflation seems a sensible range to work around. 

Notepad_Phil

UKPnAccel said:

What is a reasonable percentage per annum to estimate fund growth?

I'd agree with Croeso69 with the 1% above inflation if this was for working out a safe withdrawal rate, but I think you're wanting this for LTA purposes so I'd probably go higher at 3% above inflation so that you can see the possible dangers of hitting LTA sooner.