Retire@56?

Albermarle

Kim1965 said:

Im amazed to see that someone sitting on 3/4 of a million and wanting 23 k a year is being put off retiring.
 Retire and enjoy. If indeed 2.5% withdrawal is banded as being safe withdrawal at56 then dc pensions are about as much use a a chocolate teapot. Some of the opinions on this forum are ultra cautious. Cannot take your money into the afterlife folks. 

On the other side there is a regular and well informed poster ( quiet at the moment ) who is confident that by following certain rules that 5.5 % should be a SWR . 

DT2001

dunstonh said:

Retiring at 56 and using a 4% draw rate would be quite risky.  Probably more suitable to use 2.5% until well into 60s.

- why are you using an IFA? What value are you getting from them?

Good question as this is exactly the sort of thing that you expect the IFA to be modelling.

I read the post about 4% draw rate being 4% of just the SIPP pot and then only for first 11 years. 

It works out a smidgen under 3% and then less than 2% after SPA. Do you think that works?

Notepad_Phil

Kim1965 said:

Im amazed to see that someone sitting on 3/4 of a million and wanting 23 k a year is being put off retiring.
 Retire and enjoy. If indeed 2.5% withdrawal is banded as being safe withdrawal at56 then dc pensions are about as much use a a chocolate teapot. Some of the opinions on this forum are ultra cautious. Cannot take your money into the afterlife folks. 

There's quite a difference in the number of years you're left to enjoy by retiring at 56 rather than the more typical retiring in your sixties, so I'm not as surprised as you that some may be suggesting a 2.5% withdrawal rate, especially in todays environment.

Personally I retired at 55 and used a higher withdrawal rate, but we're not big spenders and we could reduce our expenditure if we hit a very bad sequence of returns.

Kim1965

Only a fool would continue to withdraw at an un safe rate. But this poster should be fine, if he is not then what goes for the vast majority of retirees who have less.

mspensionmonkey

Kim1965 said:

Only a fool would continue to withdraw at an un safe rate. But this poster should be fine, if he is not then what goes for the vast majority of retirees who have less.

She. Not he.