How Much Will My Pension Pay Me? (Different Fund Sizes)

I have tested different withdrawal methods using real market data to show how much you can withdraw from your pension.
Well known methods like the 4% rule FAIL more often than you might think. Using Voyant's cash flow modelling software, I show how long your income could really last.
⏰ TIMESTAMPS ⏰
0:00 Start
1:08 The Income Dilemma
2:09 Assumptions For Withdrawals
3:06 £100k Pension Pot - Maximum Withdrawal
6:15 Standard Deviation Explained
8:45 The 4% Rule Tested
9:58 What Is A Safe Withdrawal Rate?
11:30 £250k and £500k Pension Pot Withdrawals
12:35 How Can You Increase Income?
14:34 Other Considerations For Retirement Income
✅ ABOUT THIS VIDEO ✅
How much income can I get in retirement? 🤔
How much will my pension pay me? 🤔
How much do I need to retire? 🤔
These are all common questions, with few definitive answers. In this video I use Voyant's cash flow modelling system, one of the most powerful financial planning software tools in the world, to clearly demonstrate how much income you can take from your pension and other investments without running out.
I look at retirement funds of £100k, £250k and £500k.
Some people say you should just take out the long term average growth, others use the much lauded '4% rule' - I show exactly how these REALLY do by using forecasting based on historic performance and volatility.
If you want to know how much you can safely withdraw in retirement, or how long your income will last, or whether you have enough to retire, start with this video!
📈 WANT TO CREATE YOUR OWN CASH FLOW MODEL? 📈
You can now access my courses to unlock the power of cash flow modelling. For more info visit:
voyant-masterclass.mykajabi.com/
🎬 WATCH NEXT 🎬
• 3 Simple Ways To Make ...
*** DISCLAIMER ***
The content in this video is provided for information and entertainment purposes. It should not be construed as direct or indirect financial advice. You must throughly research any potential financial or investment decision and fully understand the risks before taking it. If in doubt, you should seek individual advice from a professional adviser.
*** AFFILIATE LINKS ***
Some product links are affiliate links which mean if you buy something I'll receive a small commission.
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[@chrisbourne1316]

Hi all thanks for watching. With annuity rates improving, do you think they will gain in popularity again?

[@harryfallon9115]

I'm hoping to secure an annuity income with part of my pension and put the rest in flexible drawdown. I wouldn't have considered annuities before this year but they do look better now and will mean I can keep more of my pot flexible.

[@minimad8793]

@@harryfallon9115 I was thinking along the same lines as you. All depends on the pot at the time to which direction I go

[@chrisbourne-retirementplanner]

Certainly from speaking to people recently, this approach is starting to come onto the radar.

[@peterwilliams5597]

My IFA got me an annuity quotation in March 2022 - he got me another in December 2022 in that time the value had gone up by 40% He was that shocked he had to run the figures 3 times !!!

[@patrickdegenaar9495]

An important equation to consider is on average early retirement = early grave.

[@bigdawg1353]

Really good content and clear illustrations with simple straightforward examples, no hard selling of courses and egoistic comments. A real pleasure to watch. Look forward to looking through some of your other videos. ....oh and earned a sub with all notifications turned on!

[@chrisbourne-retirementplanner]

Thank you I really appreciate that! I hope you get some value from the other vids too 👍🏼

[@chqshaitan1]

excellent video chris, loved the way you went through the various scenarios.

[@chrisbourne-retirementplanner]

I appreciate that Raymond thank you. I do think having diagrams helps make things clearer.

[@markramsay6399]

Great content. At 53 I have suddenly become addicted to all this - just wish I had showed more interest years ago!

[@awoodvine]

Agreed. It's crazy how suddenly you're old. Time flies.

[@snorkypigny1]

So does everyone

[@andyfulton8120]

Chris, your videos remind me of a time long ago when i just had to watch the magic roundabout before i went to bed. I've learnt so much and i'm really looking forward to taking control of my pension pot in a few years' time, that's not something i thought i'd hear myself say. Fantastic job!!

[@chrisbourne-retirementplanner]

Haha that’s a great compliment Andy! Thank you for watching 👍🏼

[@MrBren777]

Great video Chris, that makes the whole picture much clearer now. Invaluable information. Many thanks 👍

[@chrisbourne-retirementplanner]

You’re welcome and I’m pleased it has made things clearer for you 👍🏼

[@chrislow123]

What a legend. Your videos are so easy to understand and make so much sense. 🙏🏼

[@chrisbourne-retirementplanner]

Really appreciate the comment Chris thank you!

[@blackadder1966]

I plan for my pension to last only 20 years 65-67 retirement so running out of money in my 80s. Enjoying life before dementia or the body fails.

[@chrisbourne-retirementplanner]

Hi Paul. We never know what tomorrow may bring, so I think we need to enjoy all times of our life. The above is okay, unless you're still fit and well past your mid 80s!

[@blackadder1966]

@Chris Bourne - Tax Free Investing Expert based on family history it's very unlikely. Only 2 family members made it as far as retirement.

[@tonyh1460]

I have to agree with Paul here, looking at most people in their 80's they're not driving Porsche 911s of flying long distance I need to drain my pension by the time I'm 82, if I make it that far, I'm 62 now

[@mollyt4639]

@@tonyh1460 I’m with you & Paul on this. My mum had brilliant health until 69. She’s spent the past 13 years in & out of hospital. My dad again great health until 70s then dementia set in. He’s 84 now. I plan to spend the majority of my funds by 80! Enjoy it while I can

[@ziondanny7081]

​@@mollyt4639 Foolish, sorry.

[@extrashot]

You're the first person who's been able to explain this clearly to me... thank you. Love your content. 👍

[@chrisbourne-retirementplanner]

Thank you I’m glad it’s useful! 👍🏼

[@popasmurfaudley]

Brilliant video yet again Chris!

[@chrisbourne-retirementplanner]

Thank you very much!

[@darrenfox9769]

Making the complex sound straight forward is an art form! I found this really insightful and have a decent grasp of the topic. Subscribed!

[@chrisbourne-retirementplanner]

Really appreciate that Darren! Thanks for subscribing and I hope future content continues to be insightful 👍🏼

[@simon1066]

Thank you for providing such clear explanations. There is a dearth of practical strategies to manage sustainable withdrawals. I shall take your advice!

[@chrisbourne-retirementplanner]

You’re welcome Simon - I’m really pleased the info is useful.

[@johngray7317]

I love these videos. Well grounded great overview of the subject.

[@chrisbourne-retirementplanner]

Thanks John. Very kind of you to say.

[@thomasbroker69]

Great video & along the lines of what I thought I might get.

[@chrisbourne-retirementplanner]

Thanks Thomas glad it’s useful 👍🏼

[@minimad8793]

Thanks Chris for another full on video. Certainly terms I haven't heard before but seem to understand (strange I know lol). I maybe looking at the 30 years rather than 40 so I like the idea of what Harry Fallon said, part annuity part drawdown. Guess I will see nearer the time.

[@chrisbourne-retirementplanner]

Thanks for watching! Yeah that would suit a lot of peoples’ circumstances well I think. There’s certainly more food for thought with annuities now.

[@presterjohn71]

Another useful video Chris. Many thanks for that. Would you be able to spend some time looking at the often forgotten options of using dividends as a pension?

[@chrisbourne-retirementplanner]

Thank you! That sort of strategy comes in and out of vogue, but as part of an overall strategy, rather than the sole focus, can sometimes complement well. Will try to include in a future vid 👍🏼

[@ChrisShawUK]

Dividends are not income, they are a return of capital. The day you receive the dividend, you are no richer or poorer. If your broker decided one day to sell 5% of your stock and place it in the cash balance, you'd be outraged. But somehow if it's called a 5% dividend, everyone jumps up and down in celebration. But it's exactly the same thing.

[@rusty911s2]

Excellent stuff: subcribed!

[@chrisbourne-retirementplanner]

Awesome, thank you!

[@theskull3838]

Thanks for the great video Chris. Can you recommend an annuity comparison site please?

[@chrisbourne-retirementplanner]

Hi there. Good question - I fortunately have access to annuity comparison services so I don’t tend to look and see what’s online for the general public to use. I think moneyhelper.org.uk has one of these now but I haven’t used it myself.

[@alanhaynes9672]

I had a small pension pot from my first full time job back in 1998. I was putting the minimum in every week, and so was my employer and I think there was around £3200 in there when I left. I since moved address a couple of times and been paying into other pensions and this one was forgotten. They tracked me down last year and sent through an annual statement and my balance is now £60k. Its basically been averaging around 16% a year since I stopped paying into it in 2002. The next 20 years could be interesting

[@endian675]

I had a similar experience! I'd completely forgotten about a 20-year old pension, managed to find it (pension finding service - brilliant!) and discovered it had 64k in it! It was like winning a game show, or the lottery.

[@chrisbourne-retirementplanner]

Hi Alan. That really shows the power of compound returns, and you’ve really benefited from being invested in the right sorts of assets throughout a very productive period for investments. Certainly a very nice surprise when you see returns like that.

[@mixerman8]

Another great video Chris, for me its going to be split. 50% into an annuity the other 50% will be divided into both Vanguards Global high dividend fund and UK Equity income fund. The UK equity income fund dividends have been around 4.7-6.2 annually mixed with the Global one which has averaged a lower 3.2 ish number but more growth. Combined think they'll compliment each other whilst your pot still grows over time whilst paying out good rates meaning it never diminishes and you can leave an investment strategy in your will so it can live on.

[@whitevanman9500]

Went to a financial advisor as i had no choice and I've just learned more from you in 16 mins of clarity than 2 sessions of confusion... After feeling like a rabbit in headlights, just taken company pension im not sure if the best but at least l feel like a weight off my mind... Wish I'd have found you sooner

[@chrisbourne-retirementplanner]

Thanks for your comment. I’m really pleased I’ve been able to provide some value to you and I do hope everything works well for you with your pension.

[@recyclist6421]

Great presentation, excellent communication.

[@chrisbourne-retirementplanner]

Thank you I appreciate that!

[@MrH1905]

Fantastic content - great presentation - 👍👍👍thank you

[@chrisbourne-retirementplanner]

Thank you I appreciate that 👍🏼

[@Traumahawk007]

Great video, very simple to understand. One thing you haven’t mentioned is the State Pension kicking in as that is a certainty & will influence your drawdown

[@chrisbourne-retirementplanner]

Hi Gareth. Yes you’re absolutely right. Although this was more to show how much you could specifically draw from a pot of money for it to be sustainable rather than the overall income picture. State pension, other guaranteed pensions and additional income sources could all definitely complement the mix.

[@Traumahawk007]

@@chrisbourne-retirementplanner thanks Chris, I like you’re simple straightforward style

[@markebrey2418]

I’d also be very interest to see a video on how the state pension affects this. Be good to see a video showing how much we can take for each amount when factoring in the fact that the state pension kicks in at 67.

[@ashtonmasher]

Very useful, thank you!

[@chrisbourne-retirementplanner]

Thanks Adam glad it’s helped 👍🏼

[@johnbarrett9673]

Only just come across these videos.... brilliant...

[@chrisbourne-retirementplanner]

Thanks John!

[@craigywild]

Great video. The cash flow modelling would really useful for me. Let me know when the video is out and how to access. Thanks

[@chrisbourne-retirementplanner]

Hi Craig. Thank you! I will make more announcements in the coming weeks with a course launch likely in the earlier part of next year. Add yourself to my mail list (see Description) to get info first.

[@adrianwhitehead1950]

Excellent video and explained very clearly thanks. However, the state pension is also a factor.

[@chrisbourne-retirementplanner]

Hi Adrian. Thank you! It certainly is, although this was designed to just show how long the capital itself would last at different levels of withdrawal.

[@rabihah4119]

Great video. I believe the 4% rule applies to total withdrawals which should include charges. So this is in line with the 1% charges applied and 3% safe withdrawals. Also the use of Monte Carlo simulation is maybe an overly pessimistic model. Fund returns based on historical data icould be more suitable.

[@chrisbourne-retirementplanner]

Thank you! Unfortunately I don’t think that is how many people apply the 4% rule, they tend to take 4% after the deduction of fees, although 3% would certainly be more sustainable. I tend to think that basing things on history can lull us into a false sense of security… Pas returns show was has happened, not what can or will. The Monte Carlo analysis does at least look at a totally diverse range of probabilities and with the Cholesky decomposition applied, does take history into account.

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@jamieclay6026]

Very interesting. Voyant appears to be a useful tool.

[@chrisbourne-retirementplanner]

Thanks Jamie. Yes it’s fantastic.

[@dabe1971]

Very, very interested in the Voyant video and perhaps the course costs depending - especially if it's a one off fee for access ?

[@chrisbourne-retirementplanner]

Hi there. Thank you. I will reveal more once the course is further developed 👍🏼

[@BubbleGendut]

Great video. Can I also consider equity release on property also as an option to boost the fund say @ 80 years of age . That would add to the certainty % I would have thought

[@chrisbourne-retirementplanner]

Thank you. Yes this is certainly an option, but one that has to be understood very carefully. It is often a legitimate consideration in retirement planning though.

[@julesf7596]

A video on Voyant software modelling would be interesting Chris

[@Wolves1963]

I Agree Jules.

[@chrisbourne-retirementplanner]

Hi there. I will definitely feature Voyant more in future videos. I’ve used it for years and it is the best financial planning software available imo.

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@jockster5525]

Good work thanks for your efforts and sharing your experience 🙂

[@chrisbourne-retirementplanner]

Thanks Jock I appreciate that.

[@FergusNelson]

Great video. I'd be interested in seeing how the analysis changes if you replace the 1% fees assumption with low cost index funds that typically charge around. 0.1%. My bet is that the compound affect of the fees make a significant difference.

[@chrisbourne-retirementplanner]

Hi Fergus. This would certainly increase the projections. My upcoming course, which includes access to Voyant, will provide the ability to run such bespoke forecasts.

[@bobdunn3222]

The fund fees aren’t your biggest problem, in fact index funds can compound the problem. A good income portfolio will pay 4-5% AFTER all fees, and this WONT eat into capital. Beware of adviser fees and platform fees as these will eat into your income. Take 2022 or covid as and example. So called ‘higher priced’ active funds actually did a much better job of protecting dividend income

[@duttontube]

Hey Chris - great video, very helpful. One question I have is - given the need for careful planning and management as you get older do you recommend or see an age when you might not be as able to actively determine withdrawals and need to move into an annuity situation in case you’re not able to manage the calculations? I’m guessing over 80+ years old?

[@chrisbourne-retirementplanner]

Hi James. Yes I do tend to see a reduction in costs and a general desire for greater simplicity from around age 75. Locking into annuities wasn’t attractive for a long period of time though and people tended to remain in drawdown for that reason, but last year did bring annuities back into focus again. Flexible annuities in particular got a lot more attention.

[@torus186]

Missed this year for fixed income draw down. This 60/40 portfolio has been hammered this year.

[@chrisbourne-retirementplanner]

It certainly has, but investments can be volatile when measured over very short periods. It is always the long term that we focus on.

[@edgarhaner1949]

Nice video. You quote the fraction of results that should lie within 1, 2, 3 standard deviations as 66%, 95%, 99%. Doesn't that assume a normal distribution? Are stock market results distributed normally?

[@chrisbourne-retirementplanner]

Hi Edgar. Thank you! No stock market returns aren’t distributed normally and there can be a lot of year to year variation and outliers, but the standard deviation ranges do tend to hold true.

[@mythai9593]

Wow i'll have about £100k and wasn't expecting that much. My UK state pension covers my spending, was going to use my private pension to cover extras like holidays. Drawdown looks like my best plan.

[@chrisbourne-retirementplanner]

Glad the content was helpful!

[@markramsay6399]

Watched more. Thanks again for this really interesting resource. So I am 53. I own and run my own business, and as stressful as it is from time to time, more often than not it feels like a hobby. Good job too, but I am quite shocked (but educate !) about these returns. By 63 I will have at least £500K in the pot, but looks like I will be supplementing that with work for the foreseeable future after 65! (Health - fingers crossed). Mark.

[@chrisbourne-retirementplanner]

Hi Mark. Really glad the content is helpful! Thanks for watching.

[@0runny]

Unfortunately, the standard deviation models you showed are based on normal distributions. I hope the software in question takes account of the fact that market returns are non-normal and instead have 'fat-tales'?

[@ollie1317]

Very interesting and gives me some hope that my most ambitious hopes might actually be doable.Just got to keep paying in as much as i can reasonably afford for another 10 years and hope another global pandemic doesn't hit it at wrong time!

[@chrisbourne-retirementplanner]

Thanks Ollie. Hopefully we never have to endure that again! Keep on going 👍🏼

[@SavvyMoneyShow]

Like and subscribed

[@chrisbourne-retirementplanner]

Thank you that’s much appreciated!

[@onemanrescue1]

Hi Chris, what are thoughts on splitting a pension pot with say buying a 100k annuity and keeping 100k for flexible drawdown? Can that be done? Great video

[@chrisbourne-retirementplanner]

Yes it is possible with many pension providers these days and I think it will become more popular moving forward. Thanks for watching!

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@Kevadooch]

Double digit inflation has entered the chat! Great video, disheartening to see I’ll be eating rice cakes and gruel in my retirement.

[@chrisbourne-retirementplanner]

Thank you 👍🏼 Let’s hope not though! Inflation will settle down eventually.

[@robertmarsh3588]

Interesting video. Thanks! Im 59 this year, hoping to retire when I'm 60. I've got a decent DC pot, but most of this is currently in equities, especially after my bond funds tanked. Probably an unnecessary risk but it has given me ok growth overall. Maybe one to revisit. Although I have seen an advisor it is still quite hard to balance delivering a sustainable pension (say £40k+ net at today's rates) whilst avoiding paying far more tax than necessary, whether through income tax or LTA if the fund grows well and limits remain frozen.... The temptation is to just stay at work longer, but I can't help feeling that's the wrong answer, and may just result in me having less years of freedom when I'm still in reasonably good health and paying even more to the tax man..🙈

[@chrisbourne-retirementplanner]

Hi Robert. That is always a conundrum, and one which proper cash flow modelling advice can lend some clarity to.

[@ChrisBird1]

Spend £35k instead of £40k ,retire and thank me later . Life is way more valuable than money ,especially when your talking the figures you've got ..#notfinancialadvice

[@markeh1971]

Hi, 51 now, I’m going to have to work past 55 and keep adding to my pension and paying off debt up to this age. Health wise I’m screwed so I’m making sure the Pension money is in a SIPP and my estate. Take care all M.

[@maltesetony9030]

DB pension here - thank God!

[@SJ-pb6jx]

I would have a look at your pension rules around annual payment increases. If it’s a funded DB pension in particular, these could be capped at a relatively low %age, and was one of the reasons I decided to transfer out after my company DB pension was frozen a few years ago.

[@maltesetony9030]

@@SJ-pb6jx It's a government pension, not a company one. But I take your point!

[@chrisbourne-retirementplanner]

Valuable things Tony. They certainly take a lot of the uncertainty away.

[@Whalewraith]

8% seems optimistic these days. By the time fees have come out I'd be happy with breaking even this year.

[@mark-se6ef]

Buy utility stocks instead of annuity, you get 5% dividends and keep your money. this will give you a 5% rule and utilities are sturdy stocks with fixed customers.

[@chrisbourne-retirementplanner]

Hi Mark. That can work fine for income, but people often need access to their capital in retirement as well, which means that price stability is also important. Those shares can fluctuate wildly in price so if you need to sell at a loss then you can end up with far less shares than you started with, which then impacts income on a pence per share basis.

[@roberthorsford4266]

Hi Chris, first timer here though I’ve been watching Pete Matthews videos for a while. I too would be interested in a Voyant access licence. My Excel models are doing a job but it would be interesting to compare with a purpose built tool. I’m surprised that it cannot model inflation year by year, that’s important right now. I presume it can model a couple’s combined portfolio, so a “household” model? And model tax liabilities? Presumably DB funds can be modelled in alongside the State pension and SIPPs? Thereby providing a total view? Thanks, Rob

[@chrisbourne-retirementplanner]

Absolutely Rob. You can change the inflation rate if you wish as the forecasts are customisable. It will show everything you’ve mentioned above but far, far more than that. To be honest it has capabilities beyond any other financial planning software I’ve ever seen. I think you’d notice a big difference.

[@roberthorsford4266]

@@chrisbourne-retirementplanner Chris, excellent, standing by for details of the access licence. The big deal I guess is getting the price point right for personal use. I’d use it probably four days a year as I tend to model/review quarterly.

[@colinhanford4991]

Really useful video as always. At retirement, I'm considering 60% equities (US Equity Index) and 40% in high yield dividend equities, like the iShare UK Dividend etf. Would a high yield dividend etf, with dividends taken as income from a S&S ISA act in a similar way to bonds, or in general does it sound too risky? Only looking to need approx £22k per year between my wife and I and Voyant Go "seems" to be telling us the plan will work fine even, even if one of us dies early into retirement (hopefully not though 🙂). It's just the traditional approach I read about and see on YT is a mix of equities and bonds, so wondering if I've dreamt up something from cloud cookoo land, swapping the bonds for dividend etfs 😂.

[@chrisbourne-retirementplanner]

Hi Colin. Much would come down to the stability of income. Companies will often cut dividends during difficult economic periods, and even the more defensive sectors that pay stable dividends equals a fairly concentrated pool of stocks, and the value of shares can still fluctuate significantly. An ETF will hold stocks across sectors, which means many will be sensitive to economic factors. Remember that if you need to take more out than the dividend income at any point, you’ll have to sell shares. If the share price is low, you’ll have to sell a lot of shares, and as dividends are a pence per share, that will hit your future income. It is a strategy that can work, but income could be volatile and it is certainly high risk.

[@colinhanford4991]

@@chrisbourne-retirementplanner Hi Chris, thanks for the explanation. Definitely gives me food for though as I do more investigating 👍

[@steveguichard2259]

Yes very interested

[@chrisbourne-retirementplanner]

Thanks Steve. Make sure you’re on my mailing list, which you can find in the video description 👍🏼

[@albertoreilly4984]

Another really great chunk of information here, tks. One item I cannot seam to find anywhere is a calculator or solid information on the effects of a person's net income when the LTA bites during drawdown for example. For example a person has been happy drawing pension and then maybe 10 years after activation, the dreaded LTA limit is reached. So the net income from his DC pot drops 25% initially more as his effective reduction goes from 20% to 40% so each £100 gross was £80 is now just £60, that's an effective 25% in the net income reduction. Likewise, a 40% tax payer will see net income drop from £60 per £100 gross to just £45 net, that's a 15% reduction. Strange that a 20% income tax payer feels another 20% bite and the 40%er just feels another 15% bite. I hope all the above can be understood. Maybe you know of an online pension calculator that helps show how net income is affected when LTA bites or maybe you could include an item on this in one of your fantastic productions. As I'm mumbling on, do you have any current views on how the LTA may move these next few/many years? Any information much appreciated in advance. Cheers 🍻

[@chrisbourne-retirementplanner]

I hope they see sense and scrap it one day! By all means have a limit on contributions, but don’t penalise people for growth. If any government is likely to get rid of it though it’s this one! We shall see if they’re brave enough.

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@frederickwoof5785]

With the current slump in returns at the moment, I'm keeping withdrawal as low as possible. Having just retired a year ago, I hope things pick up soon.

[@chrisbourne-retirementplanner]

Everything goes in cycles. If the plan is a robust one, then you just need to stick to it. It won’t hurt that you’ve reduced withdrawals.

[@dubsdolby9437]

Hi chris You mention the withdrawal percentages and the certain risks attached to these as many advisors do. What about sipp pension pots that are predominantly structured using blue chip dividend payers as opposed to growth stocks. You could, in theory, if purchased correctly, have stock's averaging 8% yields and being reasonably reliable. So a 500k pot could look entirely different than the ones discussed.

[@chrisbourne-retirementplanner]

Hi there. Unfortunately, that strategy doesn't work as well as people think it might. Dividends tend to be cut during periods of deep recession, usually meaning that capital has to be drawn upon at exactly the wrong time, thereby reducing the number of shares owned and hence future dividend income when the economy recovers.

[@dubsdolby9437]

@Chris Bourne - Tax Free Investing Expert Thanks, Chris Yes, i have experienced some cuts, but some increases as well. Most are holding up reasonably well considering. . It's usually the highest yields that cut the 4-5%, usually stay put, the only exception from my experience being the pandemic.

[@jonathanhowson6420]

Chris, I just did a compound interest calculation and starting at 60 with £1m in my pension (easily achieved with £12k gross contributions a year from age 35), with an average growth rate of 6% and a withdrawal rate of 8%, I would have a very nice income which slightly deprecated each year, which is similar to what you are saying about the 25% reduction at age 75, but also leaving £500k by the time I am 90. By the time/if I get to 90 I will be done with this world. This isnt including other investments such as ISAs, property and businesses, which are likely to be another £2m at retirement. From retirement, if I carry 2 years income in cash and drop my pension withdrawals down to the tax free allowance, then that should help to iron out any market drops right? Effectively a retirement emergency fund that gets topped back up again when times are good.

[@chrisbourne-retirementplanner]

Good to be planning ahead at this stage. It could potentially work, but as with any modelling we cannot know for certain. It sounds as though you have other assets and contingencies which is good. Remember that a few million 30 years in the future won’t buy anything like it will today, and I tend to use lower growth projections when forecasting forward just to err on the side of caution.

[@brianpearson2611]

Hi Chris. Love the video and content. I am already retired and want to improve my financial planning capability to make sure I am on the right track. With the recent huge rises in inflation, some of the figures will need to be tweaked somewhat, but I am sure the modeler will allow for that. Bearing that in mind, I would love to see the voyant video and any instruction on use, so that I can try my hand, so to speak. Just for background, I manage my own SIPP with a broad mixture of equities and fixed income, along with individual shares, but recently, owing to inflation, my bond holding has suffered. I don't intend to see, as this would lock in my losses and I have a feeling that when inflation gets back under control and global challenges are reduced or even overcome, then fixed income will again be a decent foundation, but that's for the future. There are other factors I take into account when taking a pension, such as debt levels (mortgage, cards etc.) and especially nowadays I will preach the "pay your debts off first" sermon where possible. Anyway, please drop me a link to the software/video so I can have a look. Many thanks. Brian

[@chrisbourne-retirementplanner]

Hi Brian. Many thanks for your comment. Certainly, I will try to attach a link to a separate comment below, but sometimes KZbin is funny about links so if that doesn’t deliver, you can find the link in the video description, or if you email [e-mail] I will send it to you.

[@chrisbourne-retirementplanner]

voyant-masterclass.mykajabi.com

[@GuyPennington]

Hi Chris. Great videos. Does the Basic course come with subscription to VoyantGo or just Client Go ?

[@Stripeyperch]

I will receive an Armed forces pension and a Royal mail pension at 60. Im also currently investing 50% of my income into a sipp and fingers crossed in 10 to 15 years I will be secure in retirement.

[@chrisbourne-retirementplanner]

A great level of contribution David. I am sure it will benefit you.

[@andrewpercy1109]

Great video, would the probability increase if when in a below average year you took you income from the bonds investment and in the above average years from the equity investment? With the bonds suffering less from volatility you wouldn’t be affecting your base investment level as much.

[@chrisbourne-retirementplanner]

Potentially Andrew yes. It can be sensible to bespoke your withdrawal source as the situation dictates.

[@alanhand503]

Hi Chris, in your videos you constantly give a comparison of what a person can get from a pension of £100,000 to £500,000. But what about the people that have absolutely no chance of achieving that level of pension at retirement. Its these people that can least afford to make a mistake when deciding how to take/manage their pension pot. Also some of these people probably have one two or more small pensions in different companies. I know they can all be brought together, but to the basic layman how and what is the best advice that is understandable, to make the most of less that £100,000. Believe me there are a lot of people out here in the real world that are in this situation, and the worst thing about professional advisors is the technical jargon that you use that is not in everyone's every day use. Let me make a for instance. When I mentioned the terminology, Crystallised, to a pension bee advisor his comment was, "Why do they use that statement". So I'm asking you what the hell is crystallised, other than jargon to make you sound important and knowledgeable, and confuse the layman. Perhaps a video on what pension advisor jargon terminology means would help.

[@chrisbourne-retirementplanner]

Thanks for your comment Alan.

[@u187146]

Basically most people relying on a defined contribution pension are going to find that their retirement is not going to provide a realistic retirement Income, the end. Over the next 10 years this is going to become a major problem in the UK, when compared to anyone who still receives a defined benefit pension.

[@rwgleave]

I'd certainly be interested in a 'personal' access to Voyant

[@chrisbourne-retirementplanner]

Excellent. Well that is certainly possible. The link to access my Voyant course which includes a full user license is in the video description. Let me know if you can’t find it for whatever reason.

[@leesmith9299]

there's something that always confused me about these ways of determining if you can retire. they seem to use the value of the portfolio compared to the expected or desired spending levels in retirement as the trigger. x%. but if we consider these 2 scenarios the logic of it messes with my mind. say in 2022 2 people have identical finances... portfolio value=£600k wants to spend £18k a year in retirement. at a 3% withdrawal rate this is just doable. person 1 decides they've done it, they can retire. they quit work. person 2 looks at the data and also recognises they too could retire if they wanted to but they like their job so decide to continue working. in 2024 the stock market has fallen by 30%. person 2 has grown tired of their job and want to retire. now according to these methods they no longer can. 3% of their portfolio is now £12.6k (or maybe £13.8k if they added £40k). so even though person 2 is in a better financial position (2 years of not withdrawing and possibly adding more compared to person 1) they do not qualify for retirement using these methods. it seems to me that these methods need some sort of nuance added that says after 2 very bad years in the markets we are probably closer to some good years so cut yourself some slack with the withdrawal rate. thoughts?

[@chrisbourne-retirementplanner]

Hi Lee. One solution would be to ensure there is adequate cash set aside to cover 2-3 years worth of income from when you start withdrawing. If it isn’t an opportune time to start drawing from the investments, you’d draw from the cash and allow markets to recover again, which in 95%+ cases they will do within a three year period.

[@danielmontgomery4860]

Hi was wondering I have a few pensions but have stopped paying them do I need to transfer them all to the same place before accessing 25% tax free part? Any help would be greatly appreciated. Daniel

[@chrisbourne-retirementplanner]

Hi there. No you don’t necessarily have to transfer them, but you may find that is the most practical option. Each one would have to be assessed before making that decision.

[@leeroberts7821]

It would be prudent to estimate a retirement term from 65 say to age 86. At this stage you should have completed most of all your travel and entertaining by then. Depending on your fund value it could be worth looking at an annuity at that stage, however, death benefits would not be a good as drawdown.

[@chrisbourne-retirementplanner]

Hi Lee. Yes you’re definitely right about lifestyle costs reducing at that age. The consideration then may be care costs though.

[@jasonross-collins6033]

I’d be interested to know if this software can deal with modelling income from both defined benefit pension ( which without taking a hit won’t be available until 65) and defined contribution. My plan is to retire early use some of the DC in the early years and then use what remains to bolster the DB ( which at 20 years service will be a reasonable amount) and of course state pension. Obviously I’m in a lucky position but still a challenge to model over 30-40 years.

[@chrisbourne-retirementplanner]

Hi Jason. It absolutely can. That type of modelling can be handled with relative ease on Voyant.

[@MrKlawUK]

can you be flexible on withdrawals? Set a more conservative baseline income that is very safe (relatively); and then based on investment returns you can get bonus income to keep you in the green zone?

[@chrisbourne-retirementplanner]

Yes - you can use ‘dynamic spending’ strategies. See my ‘forget the 4% rule’ video.

[@MrKjpeel]

Thanks for your efforts. I'd be V interested in a Voyant course / license combo.

[@chrisbourne-retirementplanner]

Great Kevin. Thanks for watching. Make sure you sign up to my mail list to stay updated 👍🏼

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@oldman1734]

Depends on the provider. I stupidly used half of my pension fund with Prudential. Fortunately I used the other with a French organisation called AXA. AXA was taken over by other organisations and is now in the hands of Aviva. My pension paid by Prudential is about 60 percent of my Aviva pension. I’m no expert but would definitely never use Prudential for anything again.

[@chrisbourne-retirementplanner]

Yes I suppose there’s always two ways of looking at this… you could have gone 100% with Pru. To be fair I’ve seen better and worse results from both of these companies. It can come down to the timing and risk profile/underlying holdings of the funds.

[@simonwl]

Great video. Does the Voyant calculation take into account UK state pension at age 66/7/8? For me this is big factor when trying to work out a sustainable income and when I could retire - in combination with my personal pension funds. I also agree with you on the importance of a lower withdrawal rate as we get older.

[@chrisbourne-retirementplanner]

Hi Simon. Yes it automatically calculates your state pension age based on your age now. In a full financial plan that would certainly be included, but this one just looked purely at the sustainability of a pot of money.

[@continuouslearner]

Thanks for the video. Please can you disable the click noises/sounds when you display a graphic (e.g. at 10:17), its really hurting my ears.

[@chrisbourne-retirementplanner]

Yes they can’t be removed from old videos unfortunately, but they’re not on new ones.

[@A-Name-101]

Is there any way of adding in a volatility of inflation into the model. As 2% is the target and it’s currently way higher at the moment. Hopefully it will go down but that could take some time…

[@chrisbourne-retirementplanner]

It would be quite a good feature but unfortunately not. All we can do is change the expected level of inflation. Inflation tends not to fluctuate in the same way as investment returns - it’s either high for a period or low for a period. Most central banks are currently seeing a return to norm in 2024, with it starting to fall back next year. The best thing to do would be to alter the projections if it looks like inflation will remain stubbornly high for longer.

[@A-Name-101]

@@chrisbourne-retirementplanner👍 thanks for replying.

[@elliot8595]

Lighting tip, put your key lights closer to your camera.

[@chrisbourne-retirementplanner]

Thank you. You are right, but unfortunately because the amount of space between me and the back screen is quite tight in the filming area, the light bleeds onto the background when positioned more head on. It means I have to put them more side on and unfortunately then have the problem of shadows cast across my face. A bigger studio would be helpful 😊

[@elliot8595]

@@chrisbourne-retirementplanner Try lowering the intensity of your key lights open the exposure of your camera, then have a light lighting your back ground

[@PaulNaybour]

How is the calculation changes if you take a simple 4% of the remaining pot each year? I know you have a variable income but if I model this it's much more sustainable than baseline the withdrawal on the initial plot.

[@chrisbourne-retirementplanner]

Hi Paul. Wild fluctuations in income from one year to another generally aren’t tolerable to people.

[@PaulNaybour]

@@chrisbourne-retirementplanner thanks for replying could Vonage model this variable withdrawal along with some RPI-linked final salary income? Or is it limited to a fixed withdrawal target?

[@caracal9458]

if the stocks in my pension paid an average 3% dividend, and I only took out the dividend each year, would that count as a 3% withdrawal, or would that not count as anything as I'm not touching the principal and I could add one or two percent on top and still be 'safe'? Also I see all these calculations talk about raising the withdrawal each year for inflation, but salaries will definitely not be raising by inflation over the long or even short term, so as long as you raise by wage increase per year rather than inflation (or as long as your withdrawal is above the average salary not need to raise it at all?) Interested in your take?

[@chrisbourne-retirementplanner]

Hi there. You cannot take dividends from a pension… Dividends and interest flowing into a pension are not separated from capital growth - it is all just growth. All withdrawals from a pension are classed as income and subject to income tax. Ideally you want to try your best to maintain the spending power of your withdrawals by using the appropriate indexation.

[@janiishaq99]

Good video. Any chance you can show a model based in retiring at 55 as per the video but then show in options available once the state pension kicks in at 67 as you could find you can retire and withdraw at rate ‘x’ withdrawal for 12 years then reduce this level to ‘y’ which would make your pot go a lot longer. Thanks

[@chrisbourne-retirementplanner]

Hi there. These scenarios can certainly be modelled quite easily in Voyant. You may find my upcoming course on that useful as you’ll be able to access the software and create your own plan. If so, join my mailing list (in the description) and you’ll be kept up to date.

[@manni192]

Gave up saving for a pension as the govt will keep increasing the age. It was 50 in 2010 and going up to 57 next few years. Will likely be 60-65 by the time I can retire

[@chrisbourne-retirementplanner]

Don’t give up Maneeb! There’s a good chance you’ll make it to 60-65 and you’ll thank yourself when you do.

[@tancreddehauteville764]

For me, the best thing is to take the 25% tax free, reinvest it, live on it for as long as possible while also withdrawing the maximum under the personal allowance, and then buy an annuity with the rest of the fund once the initial lot has been spent. I'm planning to retire at 62 with a forecasted £600k fund by using this approach, buying an annuity at 67 with what's left at the same time as claiming the state pension. I am also due to a defined benefit pension payout of £11k in today's money at age 67. This approach should work.

[@chrisbourne-retirementplanner]

Yes it sounds like you’ve got a good spread of pension holdings. Why take all tax free lump sum at once though? Why not take regular crystallisations instead so it grows more and lasts longer? There aren’t any more tax efficient places to reinvest it than a pension.

[@petermason7743]

@@chrisbourne-retirementplanner Do you have a video on regular crystalisations please

[@chrisbourne-retirementplanner]

A couple touch on this Peter… my ‘how to get more than 25% tax free’ video discusses this.

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@jasonburford2013]

Chris, sorry to go off topic but can you point me in the direction of getting past exam papers for the DipPFA qualification. I'm currently trying to find past exam papers for R01

[@chrisbourne-retirementplanner]

Hi Jason. Have you tried Exam Angel?

[@jasonburford2013]

@@chrisbourne-retirementplanner I'll have a look thanks

[@MrViolet10]

Thanks Chris. I’ll be 55 this year and I’m hoping to retire with a pot of 500.00 do you think it is possible

[@chrisbourne-retirementplanner]

Hi Simon. Retiring with a pot of 500k is certainly possible but it all depends on the level of income you require. It probably wouldn’t be possible if the pot needed to generate 50k a year for example.

[@justin.trading]

Kind of in a good position, I think. I'm 52 now unemployed living off savings until I reach 55 where I have mortgage currently at £150K at 0.99% on a £350K property fixed until I'm 56. I have a pension pot of just over £500,000 - I want to take the tax free lump sum from this to clear the mortgage at 56. I want to draw out the equivalent of the personal allowance from age 55. I have a DB pension that currently is worth about £1,600 a year that's payable from age 60 and I just need one more year of contributions into the state pension to get a full state pension (which I believe I can top up voluntarily payable from 67/68) . I'm quite risk adverse about what to do with the £500K right now and I am kind of expecting the stock market to tank in the next year or so and sitting in cash in a SIPP that's being eroded by inflation. - Advice?

[@sassasins031]

Advice - Book an appointment with a Financial Advisor.

[@chrisbourne-retirementplanner]

Yes that is a situation that requires further advice, but you’re like to lose as much by sitting in cash for too long as you are by re-entering asset backed funds. Perhaps work out what expenditure will roughly be and keep 2-3 years of that in cash, but consider investing the rest. Remember that if the market tanks it is part of a cycle - nothing stays high or low forever. You won’t be taking everything out of your pension in one go so you have the ability to ride out volatility if you have a reasonable cash buffer.

[@CyberCurtainTwitcher]

My Prudential private pension was the biggest scam i got caught by in my whole life! I took it out at 21 and about a decade after, my forecast kept going down, so each year I had to continually increase my payments going in just to maintain the expected pot at 55. Even when i was at the point of paying more than three times what my monthly payments started at, my forecast for 55 years old was a fraction of what that same forecast was when i took it out at 21. My accountant saw something wasn't right and after sending all my documents to him, he phoned to tell me that there was nothing unlawful going on but I would have to live until I was 80 just to get back the money I had paid into it! On his advice, I froze it and put that monthly sum into alternative investments which have way outperformed that of my pension.

[@chrisbourne-retirementplanner]

The reason the forecast was going down was simply because the pension provider was using lower projected growth and annuity rates to create the projections, but those projections have absolutely no bearing on what you can really take out of your pension. The fault lies with the regulator here - they force providers to make overly pessimistic forecasts on statements. Your accountant should have known better though… what he has successfully done is talk you out of the most tax efficient wrapper you can hold for retirement planning. I’m sure the alternative investments have performed better, but you’re probably able to hold those same investments in a pension wrapper. A pension is not an investment in itself, but an account that you hold investments in tax efficiently, hence it being called a ‘wrapper’. The underlying investments drive the return, but the wrapper determines how those returns are treated for tax. You’ve had bad advice there - it’s not your fault but you should have been given better guidance by somebody who understands the above distinction.

[@whatsapchat3737]

TeXtMe DiReCtLy🤙🤙

[@markhosbrough9180]

I have an old company pension plan and it’s 50,000 they recon it’s might be 100,000 when I retire in ten years. But my main worry would be taxes on my pots in the uk and USA and social security from both countries

[@chrisbourne-retirementplanner]

Hi Mark. I couldn’t really comment on the tax position of these different benefits but it will of course depend largely on your residency status.

[@markhosbrough9180]

@@chrisbourne-retirementplanner hi Chris in my case I am a dual citizen I am British and American so in my mind will make tax filling in retirement a headache I think

[@MrJudgementday99]

So we have a balance of property and money invested in vanguard. Our current return on the British properties come to £48K and our French property is about £20K. We also have about €1.5 M in vanguard, is this. Good strategy?

[@chrisbourne-retirementplanner]

Hi there. I suppose I’d need to know more about what it is held in with Vanguard and can’t really advise specifically on here anyway, but the important thing is to ensure you retain enough liquidity and that your assets are producing sufficient income to meet your lifestyle needs, while providing a hedge against inflation.

[@phil_nicholls]

My plan was, and still is (depending on market returns over the next seven years) to retire at 65, and merely live off a pension that keeps me in the basic rate of income tax. With an initial pot a couple of years ago, after I took the tax free cash, of £1.5m, and now down at around £1.35m, I’m still hopeful that the markets will improve over the next few years to give a substantial pot to achieve what are, fairly modest aims. My idea is indeed to leave a legacy for my sons, so will be staying clear of annuities. My more immediate concern is the fees I’m being charged to manage the pot. While I appreciate that almost all investments have been hit quite hard of late, the fees charged certainly haven’t helped - indeed, the fees amount to what some people would see as a decent pension in their own right! Are there any advisors/investment houses out there that would charge a flat fee, or at least entertain a cap on their fees? Better yet, a performance based fee?

[@TOMCOOZE25]

Interactive Investor charge flat fees

[@sassasins031]

@@TOMCOOZE25 And if Interactive Investor goes bust, and hasn't kept your investments separate from its main business, you would only get 85K out under FCA protection for a SIPP.

[@phil_nicholls]

@@TOMCOOZE25 they do, and I have an ISA with them - but I was talking about using a service to manage my portfolio - not a DIY solution.

[@chrisbourne-retirementplanner]

There are certainly low cost funds and low cost platforms. Advisers have access to more platforms, which often have features that direct platforms don’t. These features can sometimes make a big difference to performance. It’s important to separate costs for products from cost for advice though - advisers are there to create the most tax efficient investment solution, to minimise risk through effective cash flow modelling and asset allocation, to devise estate planning and inheritance tax strategies and more. Not everyone needs an adviser, but some people certainly do. I’d say they fall into two categories - people whose situations are very complex and therefore carry complex tax implications, and people who don’t have the knowledge, confidence or general interest to devise an effective retirement strategy for themselves. When you say a performance based fee, I assume you mean performance in terms of the return from the market? You will never find an adviser who offers this sort of remuneration structure, because they would never leave their remuneration open to something they have no control over. Advisers can’t influence the way markets move, but they can help protect your capital in the event of negative market events by ensuring there are robust, rules based processes in place.

[@Rob-cy8xc]

did you get enhanced protection to 1.25?

[@MrNickml]

Can Voyant model the fact that in the later years of retirement annual income requirement is likely to be less than in the earlier more active years ... rising again for potential care home costs ?

[@chrisbourne-retirementplanner]

Yes it can Nick. It can model almost any scenario you can think of.

[@JURASSICDIVERUK]

It would be great if you did a video on what the average person should have ideally in a pension pot at certain ages... Like 40, 50 and 60. Great video ☺️

[@chrisbourne-retirementplanner]

Thanks for the suggestion! Always good to get a steer from viewers. Glad you enjoyed the video 👍🏼

[@jaybo8136]

At 62yrs of age my hubby is only hoping his pension lasts 20yrs

[@davidpearson243]

I’ve just retired at 56 I don’t need to touch my main pension until next April when I’m 57 Between myself and my wife (55 years) we have 17k of indexed linked pension (been paid now) she is working part time earning 25k per year but will retire fully at some point I also have another 7k per year index linked pension of mine to be taken in April 23 (or been offered 240 k CETV ) I have 140 k in a SIPP I’m going to the withdraw 140k over the next 10 years Because we both will receive full state pensions at 67 which isn’t in your calculations with the state pension at 67 we should have 17k +7k + 19k =43k all index linked with 25k tax free if Personal allowance is indexed again !!!!that’s why I don’t worry about using all the 140 k in the next 10 years as we are totally protected against inflation

[@chrisbourne-retirementplanner]

Yes many people exhaust a pot over a shorter time period when other guaranteed incomes exist. This video only highlighted the sustainability of pots of money based on different withdrawal rates.

[@davidpearson243]

@@chrisbourne-retirementplanner I found the HL Drawdown calculator a good tool gives you something to work with

[@tangoterrier]

I am struggling to understand why having a bigger pot looks disadvantageous, e.g if you have £250k your 95% level is £7,300 whereas with £500k you get less than double at £14,300. The 4% level works out exactly but the Max level is again not favourable to the larger pots.

[@chrisbourne-retirementplanner]

Hi Brian. The forecasts cannot be exact and probability analyses will show slight variations like this.

[@paulwilkinson5656]

Do I need to worry about any of this if I can live very comfortable off the state pension?

[@chrisbourne-retirementplanner]

Probably not Paul, because the state pension is a guaranteed inflation linked income. If you have no need to draw on capital at all, then you won’t have too many concerns.

[@paulwilkinson5656]

@@chrisbourne-retirementplanner Thank you for replying, your answer means a lot to me. Only recently discovered your KZbin channel and I love it.

[@Manc-fh5we]

I see the video was posted or updated 2 weeks ago? Do we need at another perspective as inflation is now in October 2022 running close to 10%? not 2% and the financial markets are in turmoil. Also do you not think living until you’re 90 is a bit optimistic as average life expectancy is around 82 and that is what pension and insurance companies base their forecasts on?

[@chrisbourne-retirementplanner]

Hi there. Short term inflation is indeed very high but that is unlikely to persist long term, so it would still be relevant to use the Bank of England target inflation rate until they decide that is no longer a sustainable or relevant target. The projections are based on you living to 95, not 90. When planning, you should never use the average life expectancy because it is just that; an average. I’m sure you know many people older than the age of 82? If you were to plan to run out of money at age 82, you could be in for a difficult existence if you survive past that age, which statistically is quite probable. That’s why it is prudent to always use a long life expectancy. It is different for annuity and insurance providers because they are managing a pool of assets or risk for many people. They can therefore offset the risk (or benefit) of people living long, with those that die young.

[@Manc-fh5we]

@@chrisbourne-retirementplanner Thanks for the reply.

[@tangoterrier]

@@chrisbourne-retirementplanner also worth bearing in mind that an insurance company will be paying out thousands of pensions so the average age of all of those people will tend towards 82 but as an individual, as you say, there is an unacceptable probnability that you will live longer.

[@Flashheartwoof]

I will prob have the lifetime allowance in my pot. So c.1m. £250k tax free then draw 4% of £750k per year - so £30k plus state pension and hopefully no housing costs. Seems reasonable?

[@chrisbourne-retirementplanner]

Hi there. Potentially yes, but never guaranteed of course. Rules of thumb can be useful, but in reality income withdrawals need to be reviewed based on changing lifestyle needs, using a rules based approach every year.

[@pedromansky]

If I am expected to live off 4% of my pot a year, I do NOT want to be paying someone 1% for basically doing very little. What options do we have to manage our own pension pots ?

[@chrisbourne-retirementplanner]

You are able to manage your own pensions on numerous direct to consumer platforms if you’ve got the confidence to do so.

[@kingozymandias8370]

If i put money in a sipp , and only withdraw share dividends is this sustainable ?

[@chrisbourne-retirementplanner]

Technically, yes, but remember that all income withdrawn from a pension is taxed through PAYE, so you’d pay income tax rates rather than dividend rates. Also, just drawing dividends would potentially lead to highly variable income.

[@philipholmes6253]

40 years retirement is far from typical. A more realistic approach would be to take the average retirement age and average date of death as a example. This looks to me to be a sales pitch for software that does complex evaluations of dubious validity or relevance. It takes no account of other factors (state pension, other pensions, owner-occupied property etc).

[@chrisbourne-retirementplanner]

It’s not typical, but it’s also dangerous to base assumptions on the average. You have to look at worst case scenarios when financial planning for the future. The software can build anything into an individual scenario, but that has to be done on a one to one basis because one person’s situation will be totally irrelevant to another’s.

[@porschecarreras992cabriole8]

I don’t know anyone in my family that lived to 95. Vogant go is bonkers to go that far!

[@chrisbourne-retirementplanner]

Actually you can go out longer than age 95. It’s possible to adjust it to whatever age you think is relevant, but it’s always best to overshoot it. You don’t want to plan to spend your last penny at age 80 but still be around at 90.

[@porschecarreras992cabriole8]

@@chrisbourne-retirementplanner state pension is still there and by the time we will be 90 I guess state pension will be increased significantly! So you do have a fall back strategy

[@benjones4646]

Would you need as much spending power at 80+, I would be thinking I would not holiday etc as much in my 80's as my 70's. Plus it more likely you would not be able to drive etc.

[@chrisbourne-retirementplanner]

Hi Ben. Expenditure does often decrease in later retirement - factoring this in is one way that the spending projections can be improved as discussed from 13.11 onwards.

[@greggbutler9344]

Most people that have worked hard enough to save and invest into a pension pot, usually only live into their mid 70s, with worn out bones

[@summerrr1]

They die from arthritis?

[@r4z0r84]

Sucks that it's 67 in Australia lol