Which? pension advice accurate?

roadweary

I know that all "how much do you need to retire" information is generic, based on a range of assumptions and that you probably need to pay for individual advice to get accurate figures...  But all of that said, Which? seems to be more optimistic than many other sources. 

For example here https://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p they seem to be saying that with £471k you could achieve £45k a year with drawdown (including state pension) or £664k for an annuity providing the same annual amount.

What do you think?
R

Dazed_and_C0nfused

I think they actually mean drawdown £25.7k not £45k.

Which is a bit higher than most suggestions on here but not ridiculously high drawdown rate.

roadweary

Hmm.......

Dazed_and_C0nfused

Producing post-tax annual income of £45,000, including the state pension, would mean an initial pot of around £664,450 to buy a joint-life annuity or £470,580 invested in income drawdown.

£45k less two standard new State Pensions = £25.7k

roadweary

Ah! 

Thanks...

bostonerimus

Assuming 19k in a couple of state pensions that drawdown rate is still around 6%, which seems very optimistic to me.

squirrelpie

Dazed_and_C0nfused said:

Producing post-tax annual income of £45,000, including the state pension, would mean an initial pot of around £664,450 to buy a joint-life annuity or £470,580 invested in income drawdown.

£45k less two standard new State Pensions = £25.7k

They say the average state pensions for men and women are £8859 and £8545 respectively so they're talking about withdrawing £27.6k in drawdown, which is just under 6% of their pot. They're assuming 3% annual growth in the pot though. Dunno whether that's standard or not.