Platforms & Pensions
Unless you ’ re shelling out for long-term care in your mid-80s , the chances are that you won ’ t be spending cash at the same rate as in your late 60s
If I retire at 67 and spend £ 42,000 a year before dying at 89 , my calculator tells me I will need £ 966,000 in my pension pot . It ’ s a large amount of money , but the shocker is that I need to accrue enough to last me 23 years , not the 10 to 15 years our parents expected to live for after they stopped working . Other forces are also at work , such as the growth of my pension pot during retirement , and inflation , eating away at the value of my money . But I have to be honest with myself . At the rate I ’ m going , I ’ m likely to accrue a pension pot of closer to £ 600,000 . If I draw out £ 3,500 ( after tax ) each month and leave the rest invested and hopefully growing at 5 % per annum , my £ 600,000 pot should last until I ’ m 88 . Let ’ s face it , unless you ’ re shelling out for long-term care in your mid-80s , the chances are that you won ’ t be spending cash at the same rate as in your late 60s .
Issue 91 - January 2023 / 67 /