Will I be able to retire in 13 years?

[monabri]

Your ISA is earning 2%...? ( small error but might as well mod it in your sheet)

not sure who you're talking to here. but I don't see any other spreadsheets posted so is it me? If so, no I don't have returns assigned for ISA in the spreadsheet above. L3 and L4 have 2% in but that's nothing to do with an ISA. It's the assumed rate of increase in the state pension and spending.

Yes, the comment was to nmdhqbc.

Cell I2 forms the starting point for the calculations - and that comprises the sum of values under "Assets" (£279k). These assets are then assumed to grow at 4% and there is also the additional contributions of column B (£22.8k). Column F is growing the Assets at 4%.




Of course, "ISA" might refer to "share ISA". If it is indeed a share ISA then you might well get 4%. As for a consistent return of 4% on £15k premium bonds I think that this would be very (very) lucky. I would thus suggest that the "Assets" figure certainly removes the premium bond value and possibly the "ISA" (and certainly if it is a Cash ISA).

I note that in column H you are doing a sum (example =sum(B3:G3)) - this would then add in the contents of column D3 (4%) and hidden column E3 which is not what you want to do - you could simply define the contents of H3 to be = B3+D3+F3+G3 (and copy down the formula into lower cells)



I know you mentioned that there was no Tax Calcs (at the moment ?) but looking at some of those withdrawal amounts shown in red font (and with a State Pension on top) you will likely be in the 40% tax range.

[nmdhqbc]

Cell I2 forms the starting point for the calculations - and that comprises the sum of values under "Assets" (£279k). These assets are then assumed to grow at 4% and there is also the additional contributions of column B (£22.8k). Column F is growing the Assets at 4%.




Of course, "ISA" might refer to "share ISA". If it is indeed a share ISA then you might well get 4%. As for a consistent return of 4% on £15k premium bonds I think that this would be very (very) lucky. I would thus suggest that the "Assets" figure certainly removes the premium bond value and possibly the "ISA" (and certainly if it is a Cash ISA).

The % in column D are for the whole portfolio. The user of the spreadsheet can put whatever estimates they want. As i said in the post it's not so much about the parameters I put in but about being able to experiment with different scenarios to see where it takes you.

I note that in column H you are doing a sum (example =sum(B3:G3)) - this would then add in the contents of column D3 (4%) and hidden column E3 which is not what you want to do - you could simply define the contents of H3 to be = B3+D3+F3+G3 (and copy down the formula into lower cells)

Ah, yes. I inserted column D after doing the sum so it messed up. I've corrected that now. Thanks for looking at the details to check.

[AsleepInYorkshire]

I think I've figured it out. I live in Scotland. A quick look at the tax rates shows that over £43,662 is taxed at 41%, so:-

Salary £51,929 - minus £43,662 means that I'm paying £8,267 at 40%.

If I pay £8,267 into my pension, I effectively get back 40% relief of £3389.47. Anything above this I will only get back 21% back?

Have I finally managed to understand it?

Looking at my last payslip there is a line that says I've done a Salary Scarface at £965 and for this month a total of £1397.74 was paid into my pension.

So does that mean that I should be paying £688 pounds into my pension and moving the rest to an ISA. Is that the sweet spot, simple use the £8267 allowance?

There are many advantages of pensions over ISA's. There are also some disadvantages. I'd suggest you look into this before you make any decision.

AiY

[Urbandreamer]

I think I've figured it out. I live in Scotland. A quick look at the tax rates shows that over £43,662 is taxed at 41%, so:-

Salary £51,929 - minus £43,662 means that I'm paying £8,267 at 40%.

If I pay £8,267 into my pension, I effectively get back 40% relief of £3389.47. Anything above this I will only get back 21% back?

Have I finally managed to understand it?

Looking at my last payslip there is a line that says I've done a Salary Scarface at £965 and for this month a total of £1397.74 was paid into my pension.

So does that mean that I should be paying £688 pounds into my pension and moving the rest to an ISA. Is that the sweet spot, simple use the £8267 allowance?

Well, yes and no. What you have described is what would be the case if you were not doing Salary Sacrifice. By doing salary sacrifice, in addition to the 40% relief on that £8,267 you also effectively get the national insurance. This would of course explain why 1397/965 is not 1.4 but 1.44

With respect to the sweet spot, I don't see it that way. Read fishers earlier post. There are still significant advantages for some even if they "only" receive standard rate tax relief.
viewtopic.php?p=384171#p384171

[swill453]

I think I've figured it out. I live in Scotland. A quick look at the tax rates shows that over £43,662 is taxed at 41%, so:-

Salary £51,929 - minus £43,662 means that I'm paying £8,267 at 40%.

If I pay £8,267 into my pension, I effectively get back 40% relief of £3389.47. Anything above this I will only get back 21% back?

Have I finally managed to understand it?

Looking at my last payslip there is a line that says I've done a Salary Scarface at £965 and for this month a total of £1397.74 was paid into my pension.

So does that mean that I should be paying £688 pounds into my pension and moving the rest to an ISA. Is that the sweet spot, simple use the £8267 allowance?

Is your "Salary £51,929" after the salary sacrifice? i.e. you actually earn a gross salary over £60,000?

If not, and the £965 sacrifice is taken off the £51,929, then you don't have any further 40% tax you can get relief on.

Scott.

[andyalan10]

Hi NewGuy

Can i add another whole area that doesn't seem to have been touched on? You say that many years ago you plucked the figure of 55 out of the air as a nice age at which to retire. Is it still the right one? Do you really want to work as you are now until that exact date, then do nothing that might earn any income?

My own example - at 50 I walked out of a job paying a not disimilar salary to your own. In a nutshell my employer was happy with me, I wasn't happy with them. For 5-6 years I was self employed doing a job I loved that paid not a lot more than minimum wage, 2 years ago I moved to France. I now have a small income from holiday rentals (smaller than normal in the last year as mainly British guests!). The rest comes from savings outside of my SIPP. I can see myself doing this for another 5-10 years which will take me to mid-late 60s.

So my advice to you would be play with the numbers in more than one way, based on what is important to you. If you lower your targeted annual income you might beat 55. If you assume you work an extra year or two you might be able to afford more travel or more adventurous travel now, in your 40s rather than in your late 50s, and so on.

Finally, be confident that with your salary, assets and the efforts you are putting in to financial planning now you are in a very fortunate position compared with many other people.

Andy

[newguy]

Hi all

I am after some retirement advice. When I was twenty my first pension consultant asked me when I would like to retire, my response was when I'm 55. Well I'm now 42 and I'm concerned that my pension savings are nowhere near where I would need to be to retire at 55 and I may well have to wait until I'm 65 before I can finally leave work.

I am really hoping that you guys will be able to offer some advice about what actions I need to take to retire early and really whether I have any chance in actually doing so.


Background

I am a 42 year old male. I am not married and have no dependents and realistically I'm going to be single when I retire.


Financial Position

Pension Pot £246K - Invested in high growth, higher risk investments
ISA - £18K - Growth focused Investment Trusts
Premium Bonds £15K

House Price Estimate £300K
Outstanding Mortgage £119K - I will be 59 when the mortgage is paid off.

Salary £50K
Total Monthly Pension Contribution is £1400 (recently increased by another £200 per month)


I have had a look at some of the retirement planners on the web and they each seem to suggest different things.

When I retire I would like to do a lot of traveling abroad. When I go on holiday, I never stay at expensive hotels. I don't have a fancy car and I think I'm fairly frugal. I therefore thought that I would need £30K of income to live on. For those that are doing it is that going to be enough to live a good retirement with travel?

If you were in my position, what actions would you take now to be able to retire at 55? Do I stand any chance of being able to retire early>

Thank you
newguy

I'm assuming your pension commitment is through salary sacrifice?

Looking at some really rough and ready figures

Pension 279 (includes savings transferred to pension)
Debt 119
Assets 300

Projection 13 years

Existing Pension 552
Debt 000 (assumes £500 per month ISA allocated to residual mortgage debt)
Assets 395
Pension Contributions 328

Total pension pot projected £880K.

At 4% draw down that's £35k per annum.

It's achievable in my opinion.

AiY

I agree, though retiring at 55 with a life expectation of maybe 90 to 95, then 4% is too much drawdown unless OP reduces drawdown as he ages and gets state pension? If OP reduces drawdown as he ages due to less desire/ability to travel etc... then yes, it might be doable.

RVF

Thanks. I will be entitled to a state pension and your right I will almost certainly go traveling whilst I am able to do so and as I get older I will probably start to do less

Newguy

[newguy]

I am no longer fully up to speed with current tax and so on (I pay almost no tax and live quite well) but I would, despite the helpful calculations from others, caution the use of a SIPP. For some years I drewdown from my SIPP, but apart from having an aversion to paying tax, I found I just did not need the income and it now just sits amongst my assets being invested by me. I am secure in the knowledge that it is outside of my estate for inheritance tax and that should be helpful to my heirs, but I am much more interested in the here and now!

I also note the comments about living off capital if needs be. I would be very cautious about that especially up until about say 80, not because there is anything magical about aged 80, but until about then you need to have the freedom to do what you want, take off for an extended trip to the south seas say(Covid permitting), or buying something you really want, or maybe even finding a wife. Financial freedom is tremendously important, and cannot be over estimated.

If therefore you are intent on retiring at say 55, then I think you need to be prepared to do some serious belt tightening from now until then, and in the meantime find a few more Scottish Mortgage type investments. When you do, please let us know.

Dod

Thanks Dod. I've just sold my Scottish Mortgage holding as it just keep going up and felt like there was a bubble. That's probably a sign for you to buy more!

[hiriskpaul]

Newguy, I have just scanned through these posts and it seems obvious to me the best thing for you to do from a financial point of view is to throw as much into your SIPP as you can via salary sacrifice, but you also need capital to bridge between when you choose to retire and when you can draw your SIPP. One thing that you might want to consider that has not been mentioned is remortgaging. Extending your mortgage until your state pension age should leave you more to save each month. You may even get a better mortgage deal than the one you are on as you have a large deposit. You can always pay off your mortgage when you draw your SIPP, should you want to, using part of your SIPP PCLS.

Keep an eye on the pension lifetime allowance. You are some way off it, but it can be surprising how rapidly you can approach it as your SIPP compounds up. The salary sacrifice savings may still mean it is worthwhile continuing with SIPP contributions even if you are at risk of exceeding the LTA, but it makes the situation less clear cut.

Another thing that springs to mind is whether you are paying a mortgage protection policy. If you are, cancel it as you don't need the protection. I recently discovered a relative in a similar situation to you was paying an unnecessary policy, sold to him when he took out his mortgage.

On the investment side, going gung-ho on growth investments is all very well if they deliver, but this is not something you can rely on, especially not for non-SIPP investments that you want to use to bridge the gap until you can draw on your SIPP. As you approach retirement the safest place for the bridge money is in cash, as an inconvenient crash may leave you with a shortfall. You will earn nothing in real terms, possibly less than nothing, on that cash, but that is the price you need to pay for certainty.

You are in a good position financially and it is well worth thinking this through as you are now. Best of luck for the future.

[Itsallaguess]

Can i add another whole area that doesn't seem to have been touched on?

You say that many years ago you plucked the figure of 55 out of the air as a nice age at which to retire.

Is it still the right one?

Do you really want to work as you are now until that exact date, then do nothing that might earn any income?

I think this is an important point, and one that probably doesn't get covered as much as it should do during these types of discussions.

If there's a strong possibility of carrying on in the same role for a few years, whilst reducing the number of hours worked, then the time-benefit of doing so might be quite substantial, even if carried out for just a few years...

Imagine stopping work completely, and there's a good chance that most of the following are likely to happen -

1. Living expenses stop getting funded by paid employment
2. Additional investment and/or pension funding comes to a halt
3. Living expenses need to start being paid from our own capital, investments, or pension
4. Investments stop being allowed to snowball as much, due to the draw-down requirement of finishing work completely...

Now imagine reducing your working hours substantially, and we might still have -

1. Basic living expenses still being funded by paid employment
2. Pension funding (perhaps with continued employee contributions..) still going on
3. Owned capital, investments or pension does not need to be drawn at this stage due to living-expense funding from paid employment
4. Investments continue to snowball, with not being required to be drawn upon...

There might be a tendency to consider a working life as being either 'on', or 'off' with this type of scenario-planning, but I agree that there may well be lots of benefits of simply asking to work fewer hours, and perhaps even drastically so, as long as your basic living expenses are covered for a while longer.

And that's just the financial side of things.....there may well be additional benefits from a mindset point of view of performing a more gradual wind-down towards a final-retirement goal, rather than perhaps putting what some might feel is quite a jolt if moving from a 'fully in work' to a 'fully out of work' situation in too short a time-scale.....and I rather suspect that work might well become a great deal more enjoyable at that stage, knowing that the working week might be much, much shorter than has been experienced for the majority of a working life...

As andyalan has rightly suggested - it's perhaps well worth considering the potential for working a part-time situation into some calculations, and especially so if things might start to look a bit tight on the 'Plan A' side of things, at least...

Cheers,

Itsallaguess

[airbus330]

And at the risk of sounding patronising which I don't mean to be, do try not to scrim and scrape so much that you impair your life. There is a small chance that you might not live long enough to enjoy the fruits of your saving. My Dad did that and died 1 year into retirement. Its a case of getting the balance right.

[AsleepInYorkshire]

And at the risk of sounding patronising which I don't mean to be, do try not to scrim and scrape so much that you impair your life. There is a small chance that you might not live long enough to enjoy the fruits of your saving. My Dad did that and died 1 year into retirement. Its a case of getting the balance right.

May I second that and join in with the patronising comments please.

I think we all have to live for today. And we have to enjoy each day as it comes. I've had some appalling issues with my health which have moved my retirement date well into the future. I hasten to add I'm not complaining. It is sad to hear that your Father was unable to enjoy a long retirement. My Dad passed away at fifty one, thirty years ago and I often wonder what he would have done in his retirement. I think he would have gone fishing, shooting and drinking

AiY

[Urbandreamer]

And at the risk of sounding patronising which I don't mean to be, do try not to scrim and scrape so much that you impair your life. There is a small chance that you might not live long enough to enjoy the fruits of your saving. My Dad did that and died 1 year into retirement. Its a case of getting the balance right.

Is the OP "Scrimping and saving? Ignoring for a moment taxes, his is ability to spend is reduced by £1500pcm (£965 salary sacrifice + £500 ISA).

So £1500*12 = £17,580.

£51,929-£17,580 = £34,349
So after pensions and saving they still have more than average salary to spend.

Personally I earn less than they do, however spend less, having no mortgage. This means that I have more to save, especially this year.

Lifestyle, saving and personal actions should be decided for yourself. Though I might agree that he should get at least some of his traveling done while young.

Some argue that you should not wish to retire early. Some argue that nobody can. Indeed this book claims that and argues that you should expect to work into your 70's or beyond.

https://smile.amazon.co.uk/100-Year-Lif ... 155&sr=8-1

Personally I disagree and am intent on building enough capital to see me to 100, baring things like death or the unforeseen.

[newguy]

https://docs.google.com/spreadsheets/d/14Tmm3LV7ym3-crEk43_kXmEr8zbgOCQQZ8okLjzG7Gs/edit?usp=sharing

I modified one of my own spreadsheets with your info. There could be errors so don't anyone blindly trust it. It basically adds investment returns to your portfolio and subtracts or adds spending or contribution. The first sheet has returns of 4% all the way through. But you can play with that for more optimistic outcome. The second sheet is where I've randomly put in some bad sequence of returns in but got to the 4% overall. Just as you retire the investment returns go bad. Even worse case scenario for you. Really it's for playing with the numbers more than the exact numbers i've entered here.

A major thing missing though is any tax considerations. My numbers a lower than these so I do not have any tax implications to consider in my spreadsheets. Maybe it can be modified to take into account.

Another thing you might want to do is adjust the spending column when your mortgage is paid off at age 59. Less spending then. Or maybe put in less smooth spending numbers. A car might be bought every x number of years for instance.

I personally do not have a state pension column in my own spreadsheet as I do not want to rely on it but it's there for completeness.

Not sure if it shows the author on googlesheets but FYI - that's a randomly named google account not my name.

nmdhqbc

Thanks so much for taking the time to upload your pension spreadsheet. Its very helpful indeed. I'll play with some figures later on.

Newguy

[newguy]

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Newguy |        |    |        |       |       |           |        |       |             
Year   | NG Age | No | Op Bal | Contr | Total | Draw Down | Growth | Total | Tax Free Cash
       |        |    |        |       |       |           |        |       |             
       |        |    |        |       |       |           |        |       |             
  1979 |        |    |        | 16.80 |       |     4.00% |  1.00% |       |        25.00%
  2021 |     42 |  1 |  279.0 |  16.8 | 295.8 |         0 |    2.9 | 298.7 |           0.0
  2022 |     43 |  2 |  298.7 |  16.8 | 315.5 |         0 |    3.1 | 318.6 |           0.0
  2023 |     44 |  3 |  318.6 |  16.8 | 335.4 |         0 |    3.3 | 338.6 |           0.0
  2024 |     45 |  4 |  338.6 |  16.8 | 355.4 |         0 |    3.5 | 358.9 |           0.0
  2025 |     46 |  5 |  358.9 |  16.8 | 375.7 |         0 |    3.7 | 379.4 |           0.0
  2026 |     47 |  6 |  379.4 |  16.8 | 396.2 |         0 |    3.9 | 400.1 |           0.0
  2027 |     48 |  7 |  400.1 |  16.8 | 416.9 |         0 |    4.1 | 421.0 |           0.0
  2028 |     49 |  8 |  421.0 |  16.8 | 437.8 |         0 |    4.3 | 442.1 |           0.0
  2029 |     50 |  9 |  442.1 |  16.8 | 458.9 |         0 |    4.5 | 463.4 |           0.0
  2030 |     51 | 10 |  463.4 |  16.8 | 480.2 |         0 |    4.7 | 484.9 |           0.0
  2031 |     52 | 11 |  484.9 |  16.8 | 501.7 |         0 |    4.9 | 506.6 |           0.0
  2032 |     53 | 12 |  506.6 |  16.8 | 523.4 |         0 |    5.2 | 528.6 |           0.0
  2033 |     54 | 13 |  528.6 |  16.8 | 545.4 |         0 |    5.4 | 550.8 |           0.0
  2034 |     55 | 14 |  550.8 |  16.8 | 567.6 |         0 |    5.6 | 573.2 |           0.0
  2035 |     56 | 15 |  573.2 |   0.0 | 573.2 | (22.9)    |    5.7 | 556.0 |         139.0
  2036 |     57 | 16 |  417.0 |   0.0 | 417.0 | (16.7)    |    4.2 | 404.5 |           0.0
  2037 |     58 | 17 |  404.5 |   0.0 | 404.5 | (16.2)    |    4.0 | 392.3 |           0.0
  2038 |     59 | 18 |  392.3 |   0.0 | 392.3 | (15.7)    |    3.9 | 380.6 |           0.0
  2039 |     60 | 19 |  380.6 |   0.0 | 380.6 | (15.2)    |    3.8 | 369.2 |           0.0
  2040 |     61 | 20 |  369.2 |   0.0 | 369.2 | (14.8)    |    3.7 | 358.1 |           0.0
  2041 |     62 | 21 |  358.1 |   0.0 | 358.1 | (14.3)    |    3.6 | 347.3 |           0.0
  2042 |     63 | 22 |  347.3 |   0.0 | 347.3 | (13.9)    |    3.5 | 336.9 |           0.0
  2043 |     64 | 23 |  336.9 |   0.0 | 336.9 | (13.5)    |    3.4 | 326.8 |           0.0
  2044 |     65 | 24 |  326.8 |   0.0 | 326.8 | (13.1)    |    3.3 | 317.0 |           0.0
  2045 |     66 | 25 |  317.0 |   0.0 | 317.0 | (12.7)    |    3.2 | 307.5 |           0.0
  2046 |     67 | 26 |  307.5 |   0.0 | 307.5 | (12.3)    |    3.1 | 298.3 |           0.0
  2047 |     68 | 27 |  298.3 |   0.0 | 298.3 | (11.9)    |    3.0 | 289.3 |           0.0
  2048 |     69 | 28 |  289.3 |   0.0 | 289.3 | (11.6)    |    2.9 | 280.6 |           0.0
       |        |    |        | 235.2 | 289.3 | (204.7)   |  110.2 | 280.6 |             
     


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Newguy |        |    |        |       |       |           |        |       |             
Year   | NG Age | No | Op Bal | Contr | Total | Draw Down | Growth | Total | Tax Free Cash
       |        |    |        |       |       |           |        |       |             
       |        |    |        |       |       |           |        |       |             
  1979 |        |    |        | 16.80 |       |     4.00% |  2.00% |       |        25.00%
  2021 |     42 |  1 |  279.0 |  16.8 | 295.8 |         0 |    5.8 | 301.6 |           0.0
  2022 |     43 |  2 |  301.6 |  16.8 | 318.4 |         0 |    6.2 | 324.6 |           0.0
  2023 |     44 |  3 |  324.6 |  16.8 | 341.4 |         0 |    6.7 | 348.0 |           0.0
  2024 |     45 |  4 |  348.0 |  16.8 | 364.8 |         0 |    7.1 | 372.0 |           0.0
  2025 |     46 |  5 |  372.0 |  16.8 | 388.8 |         0 |    7.6 | 396.4 |           0.0
  2026 |     47 |  6 |  396.4 |  16.8 | 413.2 |         0 |    8.1 | 421.3 |           0.0
  2027 |     48 |  7 |  421.3 |  16.8 | 438.1 |         0 |    8.6 | 446.7 |           0.0
  2028 |     49 |  8 |  446.7 |  16.8 | 463.5 |         0 |    9.1 | 472.6 |           0.0
  2029 |     50 |  9 |  472.6 |  16.8 | 489.4 |         0 |    9.6 | 499.1 |           0.0
  2030 |     51 | 10 |  499.1 |  16.8 | 515.9 |         0 |   10.2 | 526.0 |           0.0
  2031 |     52 | 11 |  526.0 |  16.8 | 542.8 |         0 |   10.7 | 553.5 |           0.0
  2032 |     53 | 12 |  553.5 |  16.8 | 570.3 |         0 |   11.3 | 581.6 |           0.0
  2033 |     54 | 13 |  581.6 |  16.8 | 598.4 |         0 |   11.8 | 610.2 |           0.0
  2034 |     55 | 14 |  610.2 |  16.8 | 627.0 |         0 |   12.4 | 639.4 |           0.0
  2035 |     56 | 15 |  639.4 |   0.0 | 639.4 | (25.6)    |   12.8 | 626.6 |         156.7
  2036 |     57 | 16 |  470.0 |   0.0 | 470.0 | (18.8)    |    9.4 | 460.6 |           0.0
  2037 |     58 | 17 |  460.6 |   0.0 | 460.6 | (18.4)    |    9.2 | 451.3 |           0.0
  2038 |     59 | 18 |  451.3 |   0.0 | 451.3 | (18.1)    |    9.0 | 442.3 |           0.0
  2039 |     60 | 19 |  442.3 |   0.0 | 442.3 | (17.7)    |    8.8 | 433.5 |           0.0
  2040 |     61 | 20 |  433.5 |   0.0 | 433.5 | (17.3)    |    8.7 | 424.8 |           0.0
  2041 |     62 | 21 |  424.8 |   0.0 | 424.8 | (17.0)    |    8.5 | 416.3 |           0.0
  2042 |     63 | 22 |  416.3 |   0.0 | 416.3 | (16.7)    |    8.3 | 408.0 |           0.0
  2043 |     64 | 23 |  408.0 |   0.0 | 408.0 | (16.3)    |    8.2 | 399.8 |           0.0
  2044 |     65 | 24 |  399.8 |   0.0 | 399.8 | (16.0)    |    8.0 | 391.8 |           0.0
  2045 |     66 | 25 |  391.8 |   0.0 | 391.8 | (15.7)    |    7.8 | 384.0 |           0.0
  2046 |     67 | 26 |  384.0 |   0.0 | 384.0 | (15.4)    |    7.7 | 376.3 |           0.0
  2047 |     68 | 27 |  376.3 |   0.0 | 376.3 | (15.1)    |    7.5 | 368.8 |           0.0
  2048 |     69 | 28 |  368.8 |   0.0 | 368.8 | (14.8)    |    7.4 | 361.4 |           0.0
       |        |    |        | 235.2 | 368.8 | (242.7)   |  246.5 | 361.4 |             
     


3%

Code: Select all

Newguy |        |    |        |       |       |           |        |       |             
Year   | NG Age | No | Op Bal | Contr | Total | Draw Down | Growth | Total | Tax Free Cash
       |        |    |        |       |       |           |        |       |             
       |        |    |        |       |       |           |        |       |             
  1979 |        |    |        | 16.80 |       |     4.00% |  3.00% |       |        25.00%
  2021 |     42 |  1 |  279.0 |  16.8 | 295.8 |         0 |    8.6 | 304.4 |           0.0
  2022 |     43 |  2 |  304.4 |  16.8 | 321.2 |         0 |    9.4 | 330.6 |           0.0
  2023 |     44 |  3 |  330.6 |  16.8 | 347.4 |         0 |   10.2 | 357.6 |           0.0
  2024 |     45 |  4 |  357.6 |  16.8 | 374.4 |         0 |   11.0 | 385.4 |           0.0
  2025 |     46 |  5 |  385.4 |  16.8 | 402.2 |         0 |   11.8 | 414.1 |           0.0
  2026 |     47 |  6 |  414.1 |  16.8 | 430.9 |         0 |   12.7 | 443.6 |           0.0
  2027 |     48 |  7 |  443.6 |  16.8 | 460.4 |         0 |   13.6 | 474.0 |           0.0
  2028 |     49 |  8 |  474.0 |  16.8 | 490.8 |         0 |   14.5 | 505.2 |           0.0
  2029 |     50 |  9 |  505.2 |  16.8 | 522.0 |         0 |   15.4 | 537.5 |           0.0
  2030 |     51 | 10 |  537.5 |  16.8 | 554.3 |         0 |   16.4 | 570.7 |           0.0
  2031 |     52 | 11 |  570.7 |  16.8 | 587.5 |         0 |   17.4 | 604.9 |           0.0
  2032 |     53 | 12 |  604.9 |  16.8 | 621.7 |         0 |   18.4 | 640.1 |           0.0
  2033 |     54 | 13 |  640.1 |  16.8 | 656.9 |         0 |   19.5 | 676.4 |           0.0
  2034 |     55 | 14 |  676.4 |  16.8 | 693.2 |         0 |   20.6 | 713.7 |           0.0
  2035 |     56 | 15 |  713.7 |   0.0 | 713.7 | (28.5)    |   21.4 | 706.6 |         176.6
  2036 |     57 | 16 |  529.9 |   0.0 | 529.9 | (21.2)    |   15.9 | 524.6 |           0.0
  2037 |     58 | 17 |  524.6 |   0.0 | 524.6 | (21.0)    |   15.7 | 519.4 |           0.0
  2038 |     59 | 18 |  519.4 |   0.0 | 519.4 | (20.8)    |   15.6 | 514.2 |           0.0
  2039 |     60 | 19 |  514.2 |   0.0 | 514.2 | (20.6)    |   15.4 | 509.1 |           0.0
  2040 |     61 | 20 |  509.1 |   0.0 | 509.1 | (20.4)    |   15.3 | 504.0 |           0.0
  2041 |     62 | 21 |  504.0 |   0.0 | 504.0 | (20.2)    |   15.1 | 498.9 |           0.0
  2042 |     63 | 22 |  498.9 |   0.0 | 498.9 | (20.0)    |   15.0 | 493.9 |           0.0
  2043 |     64 | 23 |  493.9 |   0.0 | 493.9 | (19.8)    |   14.8 | 489.0 |           0.0
  2044 |     65 | 24 |  489.0 |   0.0 | 489.0 | (19.6)    |   14.7 | 484.1 |           0.0
  2045 |     66 | 25 |  484.1 |   0.0 | 484.1 | (19.4)    |   14.5 | 479.3 |           0.0
  2046 |     67 | 26 |  479.3 |   0.0 | 479.3 | (19.2)    |   14.4 | 474.5 |           0.0
  2047 |     68 | 27 |  474.5 |   0.0 | 474.5 | (19.0)    |   14.2 | 469.7 |           0.0
  2048 |     69 | 28 |  469.7 |   0.0 | 469.7 | (18.8)    |   14.1 | 465.0 |           0.0
       |        |    |        | 235.2 | 469.7 | (288.2)   |  415.7 | 465.0 |             
     


4%

Code: Select all

Newguy |        |    |        |       |       |           |        |       |             
Year   | NG Age | No | Op Bal | Contr | Total | Draw Down | Growth | Total | Tax Free Cash
       |        |    |        |       |       |           |        |       |             
       |        |    |        |       |       |           |        |       |             
  1979 |        |    |        | 16.80 |       |     4.00% |  4.00% |       |        25.00%
  2021 |     42 |  1 |  279.0 |  16.8 | 295.8 |         0 |   11.5 | 307.3 |           0.0
  2022 |     43 |  2 |  307.3 |  16.8 | 324.1 |         0 |   12.7 | 336.8 |           0.0
  2023 |     44 |  3 |  336.8 |  16.8 | 353.6 |         0 |   13.8 | 367.4 |           0.0
  2024 |     45 |  4 |  367.4 |  16.8 | 384.2 |         0 |   15.1 | 399.3 |           0.0
  2025 |     46 |  5 |  399.3 |  16.8 | 416.1 |         0 |   16.3 | 432.4 |           0.0
  2026 |     47 |  6 |  432.4 |  16.8 | 449.2 |         0 |   17.7 | 466.9 |           0.0
  2027 |     48 |  7 |  466.9 |  16.8 | 483.7 |         0 |   19.0 | 502.7 |           0.0
  2028 |     49 |  8 |  502.7 |  16.8 | 519.5 |         0 |   20.5 | 540.0 |           0.0
  2029 |     50 |  9 |  540.0 |  16.8 | 556.8 |         0 |   22.0 | 578.7 |           0.0
  2030 |     51 | 10 |  578.7 |  16.8 | 595.5 |         0 |   23.5 | 619.1 |           0.0
  2031 |     52 | 11 |  619.1 |  16.8 | 635.9 |         0 |   25.1 | 661.0 |           0.0
  2032 |     53 | 12 |  661.0 |  16.8 | 677.8 |         0 |   26.8 | 704.6 |           0.0
  2033 |     54 | 13 |  704.6 |  16.8 | 721.4 |         0 |   28.5 | 749.9 |           0.0
  2034 |     55 | 14 |  749.9 |  16.8 | 766.7 |         0 |   30.4 | 797.1 |           0.0
  2035 |     56 | 15 |  797.1 |   0.0 | 797.1 | (31.9)    |   31.9 | 797.1 |         199.3
  2036 |     57 | 16 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2037 |     58 | 17 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2038 |     59 | 18 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2039 |     60 | 19 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2040 |     61 | 20 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2041 |     62 | 21 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2042 |     63 | 22 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2043 |     64 | 23 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2044 |     65 | 24 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2045 |     66 | 25 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2046 |     67 | 26 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2047 |     68 | 27 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
  2048 |     69 | 28 |  597.8 |   0.0 | 597.8 | (23.9)    |   23.9 | 597.8 |           0.0
       |        |    |        | 235.2 | 597.8 | (342.7)   |  625.6 | 597.8 |             
     


5%

Code: Select all

Newguy |        |    |        |       |       |           |        |       |             
Year   | NG Age | No | Op Bal | Contr | Total | Draw Down | Growth | Total | Tax Free Cash
       |        |    |        |       |       |           |        |       |             
       |        |    |        |       |       |           |        |       |             
  1979 |        |    |        | 16.80 |       |     4.00% |  5.00% |       |        25.00%
  2021 |     42 |  1 |  279.0 |  16.8 | 295.8 |         0 |   14.4 | 310.2 |           0.0
  2022 |     43 |  2 |  310.2 |  16.8 | 327.0 |         0 |   16.0 | 343.0 |           0.0
  2023 |     44 |  3 |  343.0 |  16.8 | 359.8 |         0 |   17.6 | 377.4 |           0.0
  2024 |     45 |  4 |  377.4 |  16.8 | 394.2 |         0 |   19.3 | 413.5 |           0.0
  2025 |     46 |  5 |  413.5 |  16.8 | 430.3 |         0 |   21.1 | 451.4 |           0.0
  2026 |     47 |  6 |  451.4 |  16.8 | 468.2 |         0 |   23.0 | 491.2 |           0.0
  2027 |     48 |  7 |  491.2 |  16.8 | 508.0 |         0 |   25.0 | 533.1 |           0.0
  2028 |     49 |  8 |  533.1 |  16.8 | 549.9 |         0 |   27.1 | 577.0 |           0.0
  2029 |     50 |  9 |  577.0 |  16.8 | 593.8 |         0 |   29.3 | 623.1 |           0.0
  2030 |     51 | 10 |  623.1 |  16.8 | 639.9 |         0 |   31.6 | 671.5 |           0.0
  2031 |     52 | 11 |  671.5 |  16.8 | 688.3 |         0 |   34.0 | 722.3 |           0.0
  2032 |     53 | 12 |  722.3 |  16.8 | 739.1 |         0 |   36.6 | 775.7 |           0.0
  2033 |     54 | 13 |  775.7 |  16.8 | 792.5 |         0 |   39.2 | 831.7 |           0.0
  2034 |     55 | 14 |  831.7 |  16.8 | 848.5 |         0 |   42.0 | 890.6 |           0.0
  2035 |     56 | 15 |  890.6 |   0.0 | 890.6 | (35.6)    |   44.5 | 899.5 |         224.9
  2036 |     57 | 16 |  674.6 |   0.0 | 674.6 | (27.0)    |   33.7 | 681.3 |           0.0
  2037 |     58 | 17 |  681.3 |   0.0 | 681.3 | (27.3)    |   34.1 | 688.2 |           0.0
  2038 |     59 | 18 |  688.2 |   0.0 | 688.2 | (27.5)    |   34.4 | 695.0 |           0.0
  2039 |     60 | 19 |  695.0 |   0.0 | 695.0 | (27.8)    |   34.8 | 702.0 |           0.0
  2040 |     61 | 20 |  702.0 |   0.0 | 702.0 | (28.1)    |   35.1 | 709.0 |           0.0
  2041 |     62 | 21 |  709.0 |   0.0 | 709.0 | (28.4)    |   35.5 | 716.1 |           0.0
  2042 |     63 | 22 |  716.1 |   0.0 | 716.1 | (28.6)    |   35.8 | 723.3 |           0.0
  2043 |     64 | 23 |  723.3 |   0.0 | 723.3 | (28.9)    |   36.2 | 730.5 |           0.0
  2044 |     65 | 24 |  730.5 |   0.0 | 730.5 | (29.2)    |   36.5 | 737.8 |           0.0
  2045 |     66 | 25 |  737.8 |   0.0 | 737.8 | (29.5)    |   36.9 | 745.2 |           0.0
  2046 |     67 | 26 |  745.2 |   0.0 | 745.2 | (29.8)    |   37.3 | 752.6 |           0.0
  2047 |     68 | 27 |  752.6 |   0.0 | 752.6 | (30.1)    |   37.6 | 760.2 |           0.0
  2048 |     69 | 28 |  760.2 |   0.0 | 760.2 | (30.4)    |   38.0 | 767.8 |           0.0
       |        |    |        | 235.2 | 760.2 | (408.3)   |  886.7 | 767.8 |             
     


6%

Code: Select all

Newguy |        |    |        |       |       |           |         |         |             
Year   | NG Age | No | Op Bal | Contr | Total | Draw Down | Growth  | Total   | Tax Free Cash
       |        |    |        |       |       |           |         |         |             
       |        |    |        |       |       |           |         |         |             
  1979 |        |    |        | 16.80 |       |     4.00% |   6.00% |         |        25.00%
  2021 |     42 |  1 |  279.0 |  16.8 | 295.8 |         0 |    17.3 |   313.1 |           0.0
  2022 |     43 |  2 |  313.1 |  16.8 | 329.9 |         0 |    19.3 |   349.2 |           0.0
  2023 |     44 |  3 |  349.2 |  16.8 | 366.0 |         0 |    21.5 |   387.5 |           0.0
  2024 |     45 |  4 |  387.5 |  16.8 | 404.3 |         0 |    23.8 |   428.1 |           0.0
  2025 |     46 |  5 |  428.1 |  16.8 | 444.9 |         0 |    26.2 |   471.1 |           0.0
  2026 |     47 |  6 |  471.1 |  16.8 | 487.9 |         0 |    28.8 |   516.8 |           0.0
  2027 |     48 |  7 |  516.8 |  16.8 | 533.6 |         0 |    31.6 |   565.1 |           0.0
  2028 |     49 |  8 |  565.1 |  16.8 | 581.9 |         0 |    34.5 |   616.4 |           0.0
  2029 |     50 |  9 |  616.4 |  16.8 | 633.2 |         0 |    37.5 |   670.7 |           0.0
  2030 |     51 | 10 |  670.7 |  16.8 | 687.5 |         0 |    40.8 |   728.3 |           0.0
  2031 |     52 | 11 |  728.3 |  16.8 | 745.1 |         0 |    44.2 |   789.3 |           0.0
  2032 |     53 | 12 |  789.3 |  16.8 | 806.1 |         0 |    47.9 |   854.0 |           0.0
  2033 |     54 | 13 |  854.0 |  16.8 | 870.8 |         0 |    51.8 |   922.6 |           0.0
  2034 |     55 | 14 |  922.6 |  16.8 | 939.4 |         0 |    55.9 |   995.3 |           0.0
  2035 |     56 | 15 |  995.3 |   0.0 | 995.3 | (39.8)    |    59.7 | 1,015.2 |         253.8
  2036 |     57 | 16 |  761.4 |   0.0 | 761.4 | (30.5)    |    45.7 |   776.6 |           0.0
  2037 |     58 | 17 |  776.6 |   0.0 | 776.6 | (31.1)    |    46.6 |   792.2 |           0.0
  2038 |     59 | 18 |  792.2 |   0.0 | 792.2 | (31.7)    |    47.5 |   808.0 |           0.0
  2039 |     60 | 19 |  808.0 |   0.0 | 808.0 | (32.3)    |    48.5 |   824.2 |           0.0
  2040 |     61 | 20 |  824.2 |   0.0 | 824.2 | (33.0)    |    49.5 |   840.7 |           0.0
  2041 |     62 | 21 |  840.7 |   0.0 | 840.7 | (33.6)    |    50.4 |   857.5 |           0.0
  2042 |     63 | 22 |  857.5 |   0.0 | 857.5 | (34.3)    |    51.4 |   874.6 |           0.0
  2043 |     64 | 23 |  874.6 |   0.0 | 874.6 | (35.0)    |    52.5 |   892.1 |           0.0
  2044 |     65 | 24 |  892.1 |   0.0 | 892.1 | (35.7)    |    53.5 |   910.0 |           0.0
  2045 |     66 | 25 |  910.0 |   0.0 | 910.0 | (36.4)    |    54.6 |   928.2 |           0.0
  2046 |     67 | 26 |  928.2 |   0.0 | 928.2 | (37.1)    |    55.7 |   946.7 |           0.0
  2047 |     68 | 27 |  946.7 |   0.0 | 946.7 | (37.9)    |    56.8 |   965.7 |           0.0
  2048 |     69 | 28 |  965.7 |   0.0 | 965.7 | (38.6)    |    57.9 |   985.0 |           0.0
       |        |    |        | 235.2 | 965.7 | (486.9)   | 1,211.5 |   985.0 |             
     


7%

Code: Select all

Newguy |        |    |         |       |         |           |         |         |             
Year   | NG Age | No | Op Bal  | Contr | Total   | Draw Down | Growth  | Total   | Tax Free Cash
       |        |    |         |       |         |           |         |         |             
       |        |    |         |       |         |           |         |         |             
  1979 |        |    |         | 16.80 |         |     4.00% |   7.00% |         |        25.00%
  2021 |     42 |  1 |   279.0 |  16.8 |   295.8 |         0 |    20.2 |   316.0 |           0.0
  2022 |     43 |  2 |   316.0 |  16.8 |   332.8 |         0 |    22.8 |   355.5 |           0.0
  2023 |     44 |  3 |   355.5 |  16.8 |   372.3 |         0 |    25.5 |   397.8 |           0.0
  2024 |     45 |  4 |   397.8 |  16.8 |   414.6 |         0 |    28.5 |   443.1 |           0.0
  2025 |     46 |  5 |   443.1 |  16.8 |   459.9 |         0 |    31.7 |   491.6 |           0.0
  2026 |     47 |  6 |   491.6 |  16.8 |   508.4 |         0 |    35.0 |   543.4 |           0.0
  2027 |     48 |  7 |   543.4 |  16.8 |   560.2 |         0 |    38.7 |   598.9 |           0.0
  2028 |     49 |  8 |   598.9 |  16.8 |   615.7 |         0 |    42.6 |   658.3 |           0.0
  2029 |     50 |  9 |   658.3 |  16.8 |   675.1 |         0 |    46.7 |   721.8 |           0.0
  2030 |     51 | 10 |   721.8 |  16.8 |   738.6 |         0 |    51.2 |   789.7 |           0.0
  2031 |     52 | 11 |   789.7 |  16.8 |   806.5 |         0 |    55.9 |   862.5 |           0.0
  2032 |     53 | 12 |   862.5 |  16.8 |   879.3 |         0 |    61.0 |   940.3 |           0.0
  2033 |     54 | 13 |   940.3 |  16.8 |   957.1 |         0 |    66.5 | 1,023.5 |           0.0
  2034 |     55 | 14 | 1,023.5 |  16.8 | 1,040.3 |         0 |    72.3 | 1,112.6 |           0.0
  2035 |     56 | 15 | 1,112.6 |   0.0 | 1,112.6 | (44.5)    |    77.9 | 1,146.0 |         286.5
  2036 |     57 | 16 |   859.5 |   0.0 |   859.5 | (34.4)    |    60.2 |   885.3 |           0.0
  2037 |     58 | 17 |   885.3 |   0.0 |   885.3 | (35.4)    |    62.0 |   911.8 |           0.0
  2038 |     59 | 18 |   911.8 |   0.0 |   911.8 | (36.5)    |    63.8 |   939.2 |           0.0
  2039 |     60 | 19 |   939.2 |   0.0 |   939.2 | (37.6)    |    65.7 |   967.4 |           0.0
  2040 |     61 | 20 |   967.4 |   0.0 |   967.4 | (38.7)    |    67.7 |   996.4 |           0.0
  2041 |     62 | 21 |   996.4 |   0.0 |   996.4 | (39.9)    |    69.7 | 1,026.3 |           0.0
  2042 |     63 | 22 | 1,026.3 |   0.0 | 1,026.3 | (41.1)    |    71.8 | 1,057.1 |           0.0
  2043 |     64 | 23 | 1,057.1 |   0.0 | 1,057.1 | (42.3)    |    74.0 | 1,088.8 |           0.0
  2044 |     65 | 24 | 1,088.8 |   0.0 | 1,088.8 | (43.6)    |    76.2 | 1,121.4 |           0.0
  2045 |     66 | 25 | 1,121.4 |   0.0 | 1,121.4 | (44.9)    |    78.5 | 1,155.1 |           0.0
  2046 |     67 | 26 | 1,155.1 |   0.0 | 1,155.1 | (46.2)    |    80.9 | 1,189.7 |           0.0
  2047 |     68 | 27 | 1,189.7 |   0.0 | 1,189.7 | (47.6)    |    83.3 | 1,225.4 |           0.0
  2048 |     69 | 28 | 1,225.4 |   0.0 | 1,225.4 | (49.0)    |    85.8 | 1,262.2 |           0.0
       |        |    |         | 235.2 | 1,225.4 | (581.4)   | 1,615.9 | 1,262.2 |             
     


7.5%

Code: Select all

Newguy |        |    |         |       |         |           |         |         |             
Year   | NG Age | No | Op Bal  | Contr | Total   | Draw Down | Growth  | Total   | Tax Free Cash
       |        |    |         |       |         |           |         |         |             
       |        |    |         |       |         |           |         |         |             
  1979 |        |    |         | 16.80 |         |     4.00% |   7.50% |         |        25.00%
  2021 |     42 |  1 |   279.0 |  16.8 |   295.8 |         0 |    21.6 |   317.4 |           0.0
  2022 |     43 |  2 |   317.4 |  16.8 |   334.2 |         0 |    24.5 |   358.7 |           0.0
  2023 |     44 |  3 |   358.7 |  16.8 |   375.5 |         0 |    27.6 |   403.1 |           0.0
  2024 |     45 |  4 |   403.1 |  16.8 |   419.9 |         0 |    30.9 |   450.8 |           0.0
  2025 |     46 |  5 |   450.8 |  16.8 |   467.6 |         0 |    34.5 |   502.1 |           0.0
  2026 |     47 |  6 |   502.1 |  16.8 |   518.9 |         0 |    38.3 |   557.2 |           0.0
  2027 |     48 |  7 |   557.2 |  16.8 |   574.0 |         0 |    42.5 |   616.5 |           0.0
  2028 |     49 |  8 |   616.5 |  16.8 |   633.3 |         0 |    46.9 |   680.2 |           0.0
  2029 |     50 |  9 |   680.2 |  16.8 |   697.0 |         0 |    51.7 |   748.7 |           0.0
  2030 |     51 | 10 |   748.7 |  16.8 |   765.5 |         0 |    56.8 |   822.3 |           0.0
  2031 |     52 | 11 |   822.3 |  16.8 |   839.1 |         0 |    62.4 |   901.5 |           0.0
  2032 |     53 | 12 |   901.5 |  16.8 |   918.3 |         0 |    68.3 |   986.6 |           0.0
  2033 |     54 | 13 |   986.6 |  16.8 | 1,003.4 |         0 |    74.7 | 1,078.1 |           0.0
  2034 |     55 | 14 | 1,078.1 |  16.8 | 1,094.9 |         0 |    81.5 | 1,176.4 |           0.0
  2035 |     56 | 15 | 1,176.4 |   0.0 | 1,176.4 | (47.1)    |    88.2 | 1,217.6 |         304.4
  2036 |     57 | 16 |   913.2 |   0.0 |   913.2 | (36.5)    |    68.5 |   945.1 |           0.0
  2037 |     58 | 17 |   945.1 |   0.0 |   945.1 | (37.8)    |    70.9 |   978.2 |           0.0
  2038 |     59 | 18 |   978.2 |   0.0 |   978.2 | (39.1)    |    73.4 | 1,012.5 |           0.0
  2039 |     60 | 19 | 1,012.5 |   0.0 | 1,012.5 | (40.5)    |    75.9 | 1,047.9 |           0.0
  2040 |     61 | 20 | 1,047.9 |   0.0 | 1,047.9 | (41.9)    |    78.6 | 1,084.6 |           0.0
  2041 |     62 | 21 | 1,084.6 |   0.0 | 1,084.6 | (43.4)    |    81.3 | 1,122.5 |           0.0
  2042 |     63 | 22 | 1,122.5 |   0.0 | 1,122.5 | (44.9)    |    84.2 | 1,161.8 |           0.0
  2043 |     64 | 23 | 1,161.8 |   0.0 | 1,161.8 | (46.5)    |    87.1 | 1,202.5 |           0.0
  2044 |     65 | 24 | 1,202.5 |   0.0 | 1,202.5 | (48.1)    |    90.2 | 1,244.6 |           0.0
  2045 |     66 | 25 | 1,244.6 |   0.0 | 1,244.6 | (49.8)    |    93.3 | 1,288.1 |           0.0
  2046 |     67 | 26 | 1,288.1 |   0.0 | 1,288.1 | (51.5)    |    96.6 | 1,333.2 |           0.0
  2047 |     68 | 27 | 1,333.2 |   0.0 | 1,333.2 | (53.3)    |   100.0 | 1,379.9 |           0.0
  2048 |     69 | 28 | 1,379.9 |   0.0 | 1,379.9 | (55.2)    |   103.5 | 1,428.2 |           0.0
       |        |    |         | 235.2 | 1,379.9 | (635.6)   | 1,854.0 | 1,428.2 |             
     


The spreadsheet will also predict net income and adds state pension at a given age. I haven't complicated by adding those columns. It will work tax out too and there are additional calculations to deal with inflation. It can deal with a couple as well as a single person.

AiY

Thanks AiY that's a great help. I'll play with your figures later on and see were that gets me

Harvey

[newguy]

Newguy, I have just scanned through these posts and it seems obvious to me the best thing for you to do from a financial point of view is to throw as much into your SIPP as you can via salary sacrifice, but you also need capital to bridge between when you choose to retire and when you can draw your SIPP. One thing that you might want to consider that has not been mentioned is remortgaging. Extending your mortgage until your state pension age should leave you more to save each month. You may even get a better mortgage deal than the one you are on as you have a large deposit. You can always pay off your mortgage when you draw your SIPP, should you want to, using part of your SIPP PCLS.

Keep an eye on the pension lifetime allowance. You are some way off it, but it can be surprising how rapidly you can approach it as your SIPP compounds up. The salary sacrifice savings may still mean it is worthwhile continuing with SIPP contributions even if you are at risk of exceeding the LTA, but it makes the situation less clear cut.

Another thing that springs to mind is whether you are paying a mortgage protection policy. If you are, cancel it as you don't need the protection. I recently discovered a relative in a similar situation to you was paying an unnecessary policy, sold to him when he took out his mortgage.

On the investment side, going gung-ho on growth investments is all very well if they deliver, but this is not something you can rely on, especially not for non-SIPP investments that you want to use to bridge the gap until you can draw on your SIPP. As you approach retirement the safest place for the bridge money is in cash, as an inconvenient crash may leave you with a shortfall. You will earn nothing in real terms, possibly less than nothing, on that cash, but that is the price you need to pay for certainty.

You are in a good position financially and it is well worth thinking this through as you are now. Best of luck for the future.

Thanks for the advice hiriskpaul - very helpful.

I don't have a mortgage protection policy. I will be honest my Investment Trusts held outside the SIPP are very growth focused but this will need to change nearer retirement.

[newguy]

And at the risk of sounding patronising which I don't mean to be, do try not to scrim and scrape so much that you impair your life. There is a small chance that you might not live long enough to enjoy the fruits of your saving. My Dad did that and died 1 year into retirement. Its a case of getting the balance right.

Is the OP "Scrimping and saving? Ignoring for a moment taxes, his is ability to spend is reduced by £1500pcm (£965 salary sacrifice + £500 ISA).

So £1500*12 = £17,580.

£51,929-£17,580 = £34,349
So after pensions and saving they still have more than average salary to spend.

Personally I earn less than they do, however spend less, having no mortgage. This means that I have more to save, especially this year.

Lifestyle, saving and personal actions should be decided for yourself. Though I might agree that he should get at least some of his traveling done while young.

Some argue that you should not wish to retire early. Some argue that nobody can. Indeed this book claims that and argues that you should expect to work into your 70's or beyond.

https://smile.amazon.co.uk/100-Year-Lif ... 155&sr=8-1

Personally I disagree and am intent on building enough capital to see me to 100, baring things like death or the unforeseen.

airbus330 - honestly you didn't sound patronising at all. I think this year is a very good year to save. I've pretty much got nothing to spend money on. I'm currently inclined to pay another £700 ppm into the pension. If will keep this figure under review and if things change (and hopefully open up) I will probably use this money to go on some holidays!

Urbandreamer - 55 is not set in stone - i would very much like to have the option to do so.

[kempiejon]

55 is not set in stone - i would very much like to have the option to do so.

Will I be able to retire in 13 years?

If you really want to, given the information I've gleaned in this thread I'd say yes. If you do though what are you going to do for the following decades you'll have to fill and how much do you think that is going to cost?
Oh and in the meantime don't get married/civil partnered or have children or a life changing medical event.

[newguy]

Please can I thank everybody who has contributed to this discussion. Its been very helpful indeed.

I think the main thing that I've taken from it, is that I should be able to retire in 13 years but it will require to put more cash away for retirement. I fully get the argument about scrimping and saving now vs living life now.

To be honest the SIPP vs ISA issue is probably not that important. I think realistically I need to get more money in both. But from what I have read, it would appear that the SIPP would likely be the most cost effective way to do that now.

I think I need some time to think my options through. I promise to come back in a few weeks to let you know what I've decided to do.

Once again. Thank you everybody

[AF62]

Take the house out of the calculations. It's an asset you use and can't be used for income so is irrelevant, unless you think you can rent your remaining lifetime housing needs for less than what it is worth.

Although the house can't be used for income, for a single person with no dependants to leave anything to then the value within the property could be useful at the end of life to fund a decent care home for a while as you wouldn't be using it then.