My rough plan and take on the 4% withdrawl rule

barnstar2077

Mick70 said:

Sea_Shell said:

Sounds like you have enough "squirrelled nuts" to go now!!!

Obviously, your sequence of returns may vary, but, we finally gave up work in July 19 (aged 53/47), when we had a total DC/ISA/CASH pot of £536,000

Since then we have spent ~£67,000  (our needs are modest  )

We still have £594,000 left.     (with some DB and SP to come)

That's despite all what the economy has thrown at us in the last 4 years (Covid, War, Energy, Inflation etc.)

As a % of spends v pot, see my sig.

wow, how have you managed to only spend £67k in 4 years, and how has your pot grew to £594k in that time when you have been withdrawing ?

my 4% withdrawl plan is mainly just for 12 years , then when SP kicks in would reduce it by whatever 2/3 of SP is, and start to increase that amount by 2% per year going forward

I think just shy of £17k a year is a pretty reasonable spend, assuming someone owns their own home outright and doesn't live in the centre of London.

There are a lot of people out there living on just their state pensions, which must be tough without any kind of safety net.

ader42

I agree, that would do our family of 3 fine once the mortgage is gone. It’s about what we spend now excluding the house.

Hence UFPLS  

Of course I’ll use some TFLS for big treats like cruises too  

michaels

barnstar2077 said:

Mick70 said:

Sea_Shell said:

Sounds like you have enough "squirrelled nuts" to go now!!!

Obviously, your sequence of returns may vary, but, we finally gave up work in July 19 (aged 53/47), when we had a total DC/ISA/CASH pot of £536,000

Since then we have spent ~£67,000  (our needs are modest  )

We still have £594,000 left.     (with some DB and SP to come)

That's despite all what the economy has thrown at us in the last 4 years (Covid, War, Energy, Inflation etc.)

As a % of spends v pot, see my sig.

wow, how have you managed to only spend £67k in 4 years, and how has your pot grew to £594k in that time when you have been withdrawing ?

my 4% withdrawl plan is mainly just for 12 years , then when SP kicks in would reduce it by whatever 2/3 of SP is, and start to increase that amount by 2% per year going forward

I think just shy of £17k a year is a pretty reasonable spend, assuming someone owns their own home outright and doesn't live in the centre of London.

There are a lot of people out there living on just their state pensions, which must be tough without any kind of safety net.

17k is less than 2 state pensions (21,200)