Annual growth projection %

Vespaboy

SCB

interesting to hear how you are getting on. I also have DC only and am a bit like you with just a bit longer to be safe etc. Think I could go now but need to work out a budget. I have not done so as think I will find I am fine so a lot of this is confidence to push that button

Just one more year…… that is me as well 

 I have been looking at the guiide website which seems to be a good one although doesn’t do couples growth I go for medium but I am high in equities so plan on 4 years cash as a buffer ( I know this means overall not so high in equities but it helps me rationalise all of this)

Albermarle

Kim1965 said:

Out of interest, how much do you need to live off in retirement and what sort of provision have you got?
 At 59 ( in11months) already mf, i will go to 2 days a week (about 20k), ive got 7.5kdb paying now, will have 60 k isa 220 ksipp and 40k in cash for emergencies. Need about 25k pa and feel v confident if i work pt for a few years i have enough. Many would disagree. 

I believe SCB is not a big spender, but other family members are......

SouthCoastBoy

Kim1965 said:

Out of interest, how much do you need to live off in retirement and what sort of provision have you got?
 At 59 ( in11months) already mf, i will go to 2 days a week (about 20k), ive got 7.5kdb paying now, will have 60 k isa 220 ksipp and 40k in cash for emergencies. Need about 25k pa and feel v confident if i work pt for a few years i have enough. Many would disagree. 

I am the same age as you, 58 this month

 I have been conducting an experiment over the last 14 months, and we opened a new joint account and lived off that money, we put in £2600/mth and that covered everything, including a trip to Australia and we had some left over, although I still paid council tax (about £220/mth) out of a different account, So I think £2600/mth net of tax should cover us, then additional capital costs will be on top of that (e.g.change of car, house repairs etc.)

Like you if needed I would be prepared to work part time if necessary. I have no db, but my wife has 2, 1 paying 9k per year when she is 60 (but reduces to about 7k at 65) and 1 will be paying around 3k per year when SPA. So when state pension kicks in she will be receiving more income than she does now, currently she pays 600/mth into the joint account, expect that will go up to 700/mth in today's terms once she is retired, and I will be putting in 1900/mth in today's terms.

At the moment I have around 700k in Pensions and 700k outside of pensions, 500k is held in cash, 900k equities. When I finish work I will be drawing down on this, some of the cash is in a pension, but won't touch the pension for the first 12 mths in case I go back to work and don't want to be restrained by the 4k contribution limit. As I draw down the cash over the next 5 to 10 years I will slowly have a higher weighting in equities, but will plan to keep a cash buffer of at least 5 years, most probably around 7, so when I need to, and equities are high I will replenish cash reserves.

Based on current projections (3.5% growth for equities, 2% for cash over next 5 years then back to 1%) and inflation (this year 11%, next year 8%, then 4% for a number of years) etc, if I finished work today, at the age of 95 I will have around 500k in today's money left (however capital expenditure will need to come out of that 500k, so most probably around 350k to 400k left, how accurate that is I have no idea.

I am not expecting any inheritance and ignored funding daughter's uni as my liability to that should be finished in May.

saucer

SouthCoastBoy said:

Kim1965 said:

Out of interest, how much do you need to live off in retirement and what sort of provision have you got?
 At 59 ( in11months) already mf, i will go to 2 days a week (about 20k), ive got 7.5kdb paying now, will have 60 k isa 220 ksipp and 40k in cash for emergencies. Need about 25k pa and feel v confident if i work pt for a few years i have enough. Many would disagree. 

I am the same age as you, 58 this month

 I have been conducting an experiment over the last 14 months, and we opened a new joint account and lived off that money, we put in £2600/mth and that covered everything, including a trip to Australia and we had some left over, although I still paid council tax (about £220/mth) out of a different account, So I think £2600/mth net of tax should cover us, then additional capital costs will be on top of that (e.g.change of car, house repairs etc.)

Like you if needed I would be prepared to work part time if necessary. I have no db, but my wife has 2, 1 paying 9k per year when she is 60 (but reduces to about 7k at 65) and 1 will be paying around 3k per year when SPA. So when state pension kicks in she will be receiving more income than she does now, currently she pays 600/mth into the joint account, expect that will go up to 700/mth in today's terms once she is retired, and I will be putting in 1900/mth in today's terms.

At the moment I have around 700k in Pensions and 700k outside of pensions, 500k is held in cash, 900k equities. When I finish work I will be drawing down on this, some of the cash is in a pension, but won't touch the pension for the first 12 mths in case I go back to work and don't want to be restrained by the 4k contribution limit. As I draw down the cash over the next 5 to 10 years I will slowly have a higher weighting in equities, but will plan to keep a cash buffer of at least 5 years, most probably around 7, so when I need to, and equities are high I will replenish cash reserves.

Based on current projections (3.5% growth for equities, 2% for cash over next 5 years then back to 1%) and inflation (this year 11%, next year 8%, then 4% for a number of years) etc, if I finished work today, at the age of 95 I will have around 500k in today's money left (however capital expenditure will need to come out of that 500k, so most probably around 350k to 400k left, how accurate that is I have no idea.

I am not expecting any inheritance and ignored funding daughter's uni as my liability to that should be finished in May.

I think it is safe to say that with the combination of your spending, your wife’s db, and your savings, you will be more than comfortable. My only query is why wait?

billy2shots

ScB,

I know you are very cautious but am I reading that correctly?
Your overly cautious approach will still see you with £350k-£500k when you are 95?

I really wish you the best and hope you do have a looooooooooong retirement. God forbid you don't get the benefit you have planned for. 


General comment 

Risk is a two way street. Risk that you don't have enough money is equal to risk you don't get to enjoy your hard earned work. 

saucer

What i was saying.  Life really is short...and the last bit is rarely the best bit

MK62

saucer said:

What i was saying.  Life really is short...and the last bit is rarely the best bit

True enough, and nobody really knows when the last bit is.......but on the flip side, living that last bit in penury is distinctly unappealing. 

saucer

Yes but my comment was in relation to having 500k or so at 95. That would buy a fancy funeral

SouthCoastBoy

Yes appreciate 500k in today's money when 95 does seem a lot, but it's only a projection could be a lot less or a lot more. 

I don't mind leaving this amount, it will ultimately go to wife or kids. I prefer that than running out of money

saucer

SouthCoastBoy said:

Yes appreciate 500k in today's money when 95 does seem a lot, but it's only a projection could be a lot less or a lot more. 

I don't mind leaving this amount, it will ultimately go to wife or kids. I prefer that than running out of money

No I get that too.