Hoping to be able to retire at fifty-five. Am I doing this right?

Albermarle

OP - Although investment growth figures are mentioned, I do not see anywhere what you are actually invested in ? ( unless I missed it)
If we presume it is a 100% equity global index fund, then when you get near to retiring and it is say a Million Pound, what would be your Plan B if it dropped to say £600K due to a market crash ? ( which is entirely possible) 

GunJack

Albermarle said:

OP - Although investment growth figures are mentioned, I do not see anywhere what you are actually invested in ? ( unless I missed it)
If we presume it is a 100% equity global index fund, then when you get near to retiring and it is say a Million Pound, what would be your Plan B if it dropped to say £600K due to a market crash ? ( which is entirely possible) 

Maybe as soon as it hits £1M move it into a STMMF (within the pension, obvs) for a more secure/less risk option?

alexpg_2

Thanks everyone for the advice and input... a lot of very thought provoking comments, but my main take home is that what I'm trying to achieve isn't out of the question and that I should look to up my AVCs so it takes out my full 40% pay so that at least I've got an extremely solid base that will give me plenty of flexibility in the future.

I do have quite a bit to think about retirement and what I want my life to look like when I don't have to work any more, but at least there's a bit of optimism when things get tough that there is an end point to be aiming for.

RogerPensionGuy

Albermarle said:

OP - Although investment growth figures are mentioned, I do not see anywhere what you are actually invested in ? ( unless I missed it)
If we presume it is a 100% equity global index fund, then when you get near to retiring and it is say a Million Pound, what would be your Plan B if it dropped to say £600K due to a market crash ? ( which is entirely possible) 

As this post suggests a good old 40% drop in value could really change the way it pans out. 

Sequencing risk is always about and especially unhelpful in that minus 10 & plus 10 year window from paid employment to kicking off pension investments items.

Recency bias is always about and these last 15 years has been a pretty nice window/windows IMHO, however 1999/2000 & 2007/2008 were not such nice windows to be getting caught up in.

I certainly plan for a window like 2007/2008 GFC to occur again in the next 30 years, it maybe lesser than the GFC or it maybe bigger, but needs to be considered IMHO. 

Time will tell.