Fiscal drag and withdrawal strategies

NormalNorman

https://forums.moneysavingexpert.com/discussion/comment/82008155#Comment_82008155

Indeed but I think as you get older you realise that time is worth more than a few extra quid.

NormalNorman

This is my thinking.

Surely if you do some of the fun stuff now, whilst younger and still gainfully employed, you will have the same amount of money overall as if you did it in retirement?

Just like I was sal sac down to low £30k but realised this is really stupid. For my circumstances I'd be better paying myself £43662 making best use of the Scottish BRT band allowing some more fun stuff/more in ISAs now as fiscal drag will be brutal later on?

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/82008157#Comment_82008157

oh my wife has clearly decreed an ‘essential discretionary’ budget from the start. I’m treating it as discretionary from a planning perspective so can take a little more risk, but its still important.

my fun money part there was my timing of DB means from 67 potentially £0 draw needed from my DC so it all becomes flexible for extra treats for us or for helping the kids. Taking the DB at the start meant a small but continuous draw requirement. that neatness appeals to me (although inflation/personal inflation/tax bands etc will all mean that won’t be that neat in 12 years time but it looks nice on paper!)

artyboy

https://forums.moneysavingexpert.com/discussion/comment/82008155#Comment_82008155

Or possibly "the worse you have planned"…

Although it's hard to plan when the tax goalposts keep getting shifted.