Anyone got their retirement plans on hold?

Cus

I was going to qualify the 4% as ok due to 2SP and £32k required, but ran out of room on the packet..

Bianchiintenso

   thanks Cus

QrizB

Bianchiintenso said:

I'm getting the impression a £500,000 pot isn't going to support my retirement

I don't know why some people are doubting this.

Bianchiintenso said:

I'm initially planning £20k annual withdrawal, use part of savings until SP kicks in in 1 years time, wife due in 7 years time. We can comfortably live on 32k pa, can cut our cloth to suit if necessary, last guide retirement designer showed that 'could' work?

In today's money, you need 20k in years 1-6 then 12k pa thereafter? £500k should be plenty.

Bianchiintenso

Appreciate that QrizB

Cus

Bianchiintenso said:

   thanks Cus

But £499k is a big no 😆

HeyYeah

michaels said:

Bianchiintenso said:

Malthusian said:

Bianchiintenso said:

Not necessarily true, perhaps I can afford to wait until I feel the time is right for me

If you cannot afford a 10-20% drop in your pension fund you cannot afford to retire using income drawdown.
How much are you looking to draw out of the pot each year?

I'm initially planning £20k annual withdrawal, use part of savings until SP kicks in in 1 years time, wife due in 7 years time. We can comfortably live on 32k pa, can cut our cloth to suit if necessary, last guide retirement designer showed that 'could' work? 

Not sure whether to laugh or cry. 
1) I assume this is in nominal pounds and presented that way to show a nice upward line whereas in reality what matters is out spending power in real terms so this representation is just designed to make us see something that really is not there.
2) Unless this is a DB outcome then again it makes little sense without an uncertainty fan or perhaps a linked graph showing an uncertainty fan for the underlying capital....

Perhaps a presentation that showed your income as a percentage of average income (which would be falling) alongside an uncertainty fan for the underlying investment pot might give a better 'gut feel' of what the numbers imply....

I think that’s Guiide pension planner which runs multiple scenarios. I thought that it’s good, maybe not as sophisticated as something an ifa might use, but useful.  https://try.guiide.co.uk/simple/?gclid=Cj0KCQjwuZGnBhD1ARIsACxbAVgtQ4gfPCxq5IpgebNvHk588y9eWaOyM75AU0HxT9snQ70eWAAw9fwaAgRoEALw_wcB

QrizB

QrizB said:

In today's money, you need 20k in years 1-6 then 12k pa thereafter? £500k should be plenty.

Just coming back to this now I've got a little more time. In round numbers, based on HL's best buy table ...

• You could spend £320k on an RPI-linked annuity and cover the £12k
• That leaves you with £180k to provide £8k pa for 6 years.
  

I don't see the problem. You could probably do it with £400k (or less).

Pat38493

QrizB said:

Bianchiintenso said:

I'm getting the impression a £500,000 pot isn't going to support my retirement

I don't know why some people are doubting this.

Bianchiintenso said:

I'm initially planning £20k annual withdrawal, use part of savings until SP kicks in in 1 years time, wife due in 7 years time. We can comfortably live on 32k pa, can cut our cloth to suit if necessary, last guide retirement designer showed that 'could' work?

In today's money, you need 20k in years 1-6 then 12k pa thereafter? £500k should be plenty.

I missed the part about 2 full state pensions I thought it was one.

Bianchiintenso

Appreciate the positive comments, and the time you’ve taken to reply

handful

The other buffer that often gets ignored is a property with no mortgage. Equity release or downsizing (potentially) can provide a decent safety net if things down pan out to be able to support 4% SWR.