RS: Topic moved to "FIRE" from "Pensions"
Hi,
Old timer from around 97 or 98 vintage on the other place, first post here and looking for some feedback.
So, I am 50 and at the age of 49 I was made redundant and after almost a year of looking for work I have decided that I should take stock and accept that I may never get back on the horse. I cannot take my pensions until 55 at the earliest and am waiting for updated quotes including the at 55 value but I reckon I could have a modest retirement if that's the way things play out but I'd like your thoughts.
I have
£220k of accessible investments
$530k of DB fund.
$9k of final salary if taken at 60.
$9k of state pension available from 67 (although this may raise to 68).
My thoughts are to consider the investments as one pot of $750 although I can only draw from the accessible funds at the moment and draw down at the rate of 3% of the value of those funds per annum (so income will fluctuate). Given the starting age of 50 and that I am fit and well is that sustainable?
I have young children so want to leave as much as possible while still enjoying a decent life. Not the retirement I planned at 60 but still okay.
My wife's finances are separate but she will get an NHS pension and I am mortgage free. She is a decade younger than me. Life sucks I am not considering her position to any great extent as she will be fine.
My problem with my approach is that my income will take two steps up at 60 and 67 and I'd probably rather live more evenly. I may take my final salary at 55 reducing it by an estimated quarter. TBC. I will start drawing from my pension at this time and start incurring income tax.
Current forecast rough income:
50-59 £22.6k
60 £32k
67 £41k
Would taking a larger but reducing percentage earlier incur greater risk of running out of money? Is my 3% of the funds value at the time of withdrawal approach balanced?
I am willing to accept some volatility and can live on a take home of £1.2k per month plus say £5k for an annual holiday.
Thanks for your view,
Awol.