"That’s assuming that once you retire, your cash investment grows at an average of 0.50% a year, fixed interest at 4.75% a year and equities at 7.25% a year." It doesn't give a huge amount of detail about the model (for example you can select cautious, moderate, or adventurous, but it doesn't tell you what this actually means in detail). If I put in a drawdown rate of 2% it says my money will never run out and actually I would be a millionaire even if I die at 110! (again only on the middle or higher investment risk and growth options). I put in a pot of 750K and the drawdown was 31.5K so about 4.1%. ![]() Stuff.Įdit - I guess the evolution of the numbers is because I selected to increase the drawdown 2% per year for inflation and at a certain point after 18 years or so the drawdown exceeds the growth in the model behind these numbers.Įdit - I guess the evolution of the numbers is because I selected to increase the drawdown 2% per year for inflation and at a certain point after 18 years or so the drawdown exceeds the growth in the model behind these numbers.Only 2%? Inflation is going to get close to 10% this year. However as I’ve read on many threads here, I wouldn’t be allowed to do that because…. However that said - the figures it presented over the 40 years available for “pension pot” looked a bit weird because in the first 20 years, the pension pot was growing faster than I was taking out, but then it suddenly starts shrinking even though the drawdown rate hasn’t changed - I guess this must be something to do with the assumptions it’s making but it seems strange.Īnyway - if these numbers are even anything close to realistic it actually could be a good thing to cash in DB pension. ![]() Just for fun I plugged in the CETV value of my deferred DB pension.Īccording to this calculator, if I selected the middle risk option, and the “middling” growth assumptions, I could pay myself the same pension that my pension provider is quoting me at 65, but I could retire at 55, and the money would last more than 50 years!Įven if I selected cautious investing and “pessimistic” growth, the money would last over 30 years at that drawdown rate. ![]() How useful are the pension drawdown calculators on the various websites - for example there is one on .uk (possibly you have to be a member to use it)?
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