How much retirement income can you get from £300,000.

Mr Pickles is back and this time he has £300,000 in his Personal Pension. Thanks as always for watching and do let me know if you have any questions or queries. All the very best!🙏

Thank you so much. That was a really valuable video. It's refreshing to see achievable figures.

Wow, thanks Ed So much useful info in a shortish video Really really helpful, great practical , realistic examples Thank you very much 👏🏽

Thank you. I don't look at annuity rates or tax free lumpsum but in my head I always think of a rough rule of thumb as 5k pa for every 100k in the pension pot. So a 250k pot gets you something just around the personal allowance, around 12.5k pa. Very useful and informative and for my pov supremely timely as always. Its like your video drops at exactly the right moment when I am contemplating a similar question.

Thanks Edmund great video as always

Thaanks Edmund

Im retiring in 67 weeks time at 55 and feel like im watching more videos like this than i am working 😂😂

“Mr Pickles will be in retirement for 20-25yrs…” haha what a nice way of putting it 😅

I think its about being flexible in retirement, keep your higher growth conviction stocks but if they have a bad year or 2 cut back on spending to preserve the pot until it recovers as it always does given a few years

Good video, I like to see how the models work. Also I like to read comments from people who are actually retired, stating how much income you really need. Personally it gives me comfort that at 53 I am completely sorted financially for retirement (between my wife and I we have £1.6m in DC pensions and investments) and can retire at 55 if I choose. I will wait until I am 56 as our son will still be in sixth form until then and I really can’t see the point in retiring until he finishes school and is old enough to be independent. Being retired while still needing to do school runs during term time seems a bit pointless when for us retirement is about freedom to travel.

Great Video. I have about 5 years until retirement, so absolutely maximizing my pension allowances. I suspect that the 25% tax free is gonna be reduced or scrapped all together in future by Labour should they get in. Pensions for the better off, will be targeted for sure.

Any pension drawn from investing is an assumption of what could happen based on the past, as no one can predict the future. I think the important point is the lump sum? and what you do with it, if you spend it all, then you are giving away your security. I think at least 1 year pension money should be ring fenced in a separate interest bearing bank account in case the brown stuff hits the fan and some or all of your investments fail to pay out. Who could have foreseen the pandemic, and the reaction of the government preventing financial institutions from paying a dividend. Then the choice is yours either to cut back or take out of your ring fenced bank account to take you through. Remember It is not the income you have coming in, it is what you spend is the problem that many find themselves in the inability to moderate their expenditure.

The PLSA figures are scaring people so unnecessarily. People take them as gospel and don';t seem to smell a rat when their recommendations are higher than some are currently earning ! If you survive without that amount of salary, why would you not be able to when retired ?! I heard on a finance radio programme that the PLSA figures are calculated by simply asking people who are no where near that age, what they would like to be able to do when they retire - essentially asking people for their hopes and dreams and not their realistic aspirations. It's no wonder the figures are so high !

Could you do a video touching on Strathclyde pension scheme combined with AVCs additional voluntary contributions for those unaware my AVCs are with prudential but there no videos out there see lot pension wise AVCs stuff which I guess work similar at 19 year pension stage think pension worth about £11.000 per year at the moment but normally goes up £1000 per year or least my projection retirement pension pot does.

66 ? .... bloody get it , spend it !

Really helpful video. I think I am correct in saying fixed term annuity providers will not offer enhanced annuity rates for applications with existing health conditions

I do think the Which retirement spending numbers are realistic if there is no mortgage or rent to pay

16p for every pound invested in Sipp at the moment.

I agree that the Which figures are way more realistic than the PLSA figures. The Which figures are more in tune with average wages if you factor in that once retired your not paying a mortgage and smaller / none pension payments. My preferred route is Annuity over Drawdown particularly as i had a Gauranteed Annuity Rate. For a pot of just over half your £300,000 i am getting a comparable annuity pension to the one you have given though i did not take the tax free cash. With more people ending up in care homes the cost of which is staggeringly high i wonder if there is a way of doing a calculation of the average care home costs and how long your pension will last. There are horror tales of many people paying £1000+ a week and once all assets are sold and the cash is exhausted they have to move out into lesser accommodation. The figures used in this video would see Mr Pickles burning through his funds a lot quicker if he were in a care home.

Edmund I’m trying to understand if the annual ufpls would better than drawdown if you plan to use up all the pot, since any growth in crystallised funds is taxable right?……. Is this significant?? Thank you David