How Much Can I Spend in Retirement with a £500,000 Portfolio?

[@JamesShack]

Do you find these types of examples useful? Are there any other situations you would like me to cover?

[@neilb8822]

Very much so as many of us are the first generations not to have a final salary pension and working this all out ourselves is stressful. New scenario would be waiting for redundancy vs leaving of own volition and working out financial implications.

[@ianwhittaker3041]

Hi James. We are a working south east based couple (ages 56 & 54 with 2 older kids) with various pensions (DB & Sipp DC), ISA's, and BTLs, and looking to spend £60k pa in retirement and travel the world. We'd like to know if we can achieve that in 2 years time when we're 58 & 56. Would you consider us for a case study? Thanks

[@themiddleagedmillenial4380]

One with public servicea defined benefit schemes both legacy and new

[@igorpuskarskis1592]

Mind blowing how much difference can 5k make in expenditure. Love how detailed and informative your vids are

[@simonunion4657]

I am 55 and retiring with 550k so interesting for me no children, don`t drive own house so out goings low see what the future holds yourself, pensioncraft and a few others like Chris Bourne all good channels 👍

[@r1ch67]

Make sure you spend as much money and enjoy yourself instead of holding back money for care. They will strip you of all your remaining money (up to £23k) but those who have not worked or saved will get exactly the same level of care. Completely unfair but that's how the system works.

[@alanmiskimmon7851]

Spent some time in several Care Homes making observations. 2 groups of people those who have insufficient savings to be charged fees were generally happy and care free. Those who had saved diligently cried as their life long savings were eaten away. Spend your money, enjoy life while you are healthy!

[@lawrencer8673]

If you pay for your care home or if its paid for by the tax payer you will be treated the same in the care home. Spend your money while your able-bodied.

[@IanFrance]

This is why I’ve started looking into ways to make my money work smarter for me. Rich Dad, Poor Dad has some great lessons on building assets, but it’s interesting how it’s tied to MLMs. I’m curious if anyone has experience with strategies that offer real, sustainable results. I’ve also been thinking about seeking a financial advisor-people say it can make a huge difference in navigating situations like this and ensuring you’re not leaving money on the table. Any recommendations or advice?

[@antenellomontabi]

​@@IanFrance Completely agree it’s so unfair that those who save get penalized while others get the same care for free. I used to think I could manage on my own, but I felt stuck and wasn’t seeing progress. Finding a financial advisor changed everything they reviewed my portfolio, helped me shift into better-performing assets like ETFs and dividend stocks, and made my money work smarter. I started with £100k, and now I own 3 properties and have £900k in my portfolio, ready to retire. Wish I’d done it sooner it’s made a huge difference

[@IanFrance]

@@antenellomontabi Honestly, I think I will need to reach out to your licensed financial advisor. I'm really having difficulties building my portfolio and could use some good guidance and support

[@liammullan2197]

James your videos are very generous spirited. You're a professional in the industry but while many hold their cards close to their chests you appear to genuinely care about helping others. Good on you.

[@JamesShack]

Thank you for saying so!

[@raulduke1010]

I work in care - the people who are happiest in a care home are ALWAYS the ones who planned ahead, went into a home on their own terms and aren't worrying about the burden on their kids. And it is a burden, at least initially. Kids often feel like they aren't doing enough, worry that they haven't found the right, safe, place and that their parents are going to be wiped out financially. Imagine believing that your parent might run out of money & thinking that they could be thrown out of their home! It's an unfounded worry, any home worth its salt will work with families in advance to find solutions that work for everyone. You'll worry about it too though when it happens. We all will, because we care about our parents and want the best for them.

[@uncountableuk]

This is another excellent example of a financial planning service that I'd dearly love to buy. I'm 55 and been retired for five years. I have my own home-made spreadsheets that address some of these issues, but not the stress testing with historical data. The only thing I'm not prepared to do is hand over x% of my portfolio in fees for the next few years to get the advice today. The amount of work in providing a plan like this looks fixed .... Yes it might vary by a few hours, but it should be possible to price up a service that i can buy with cash up front.

[@paulbowers3106]

If I could offer a single piece of advice if you have ageing parents - make sure you set up Power of Attorney over their health and wealth. My mum contracted Dementia and quickly lost her ability to make sound decisions and look after herself. We realised quite quickly that we needed to step in but without Power of Attorney the ability to do the simplest of things (like speaking to her bank) was nigh on impossible. We then realised it can take up to 6 months for POA to be set up. I recommend setting this up whilst they are well. Indeed if you are reaching into your 60s, I would recommend organising this for yourself so you dont place that burden on your children

[@andyj2106]

Not just for parents. Do reciprocal POAs with your spouse as well and make other relatives, e.g. sister, brother, joint attorneys as well. As Paul says, you won't regret it because it's an absolute nightmare without.

[@Banthah]

Sound advice. LPAs for both health and finance will make your life so much easier during these difficult times.

[@alanhaynes9672]

Easier said than done. Most people of sound mind will not relinquish control over their assets like that, even to their children.

[@jablot5054]

​@@alanhaynes9672it only kicks in when you are not of sound mind and can't make best interest decisions for yourself.

[@stevesargent8731]

@@alanhaynes9672 They dont. The Attourneys can only exercise the power where the person is incapable of making sound decisions.

[@jablot5054]

I completed my bucket list when i was young. I paid my mortgage off by aged 40, ive never had a job that paid the average UK wage. I semi retired at 53 then fully at 59. I live a good life on £1k a month doing exactly what i want and have money left over. When the state pension kicks in at 67 im going to have £1k a month spare ! You dont need alot to have a GREAT live.

[@wakeywarrior]

1k a month wouldn’t cover what I want to travel in retirement so people have different expectations from life.

[@keziasarah]

Pls re=assess - Labour will ensure your old age pension is not paid out as you are deemed rich! - Have to support your local Afghan don't forget..

[@simont531]

@@keziasarah Stop scaremongering - no one has threatened to take away UK pensions. They added means testing of the on average £200pa winter fuel allowance. Labour have kept their commitment to the triple lock…

[@milkboccle]

@@simont531labour just announced inherited pensions are now included in inheritance tax, it was previously outside of your estate, so now can be taxed heavily

[@simonparfitt8]

@@keziasarahthe local Afgan who saved my life and countless other people

[@getreal7964]

Had to put my dad in a care home a few years back. Cost me £75,000 over two years but he was very happy there and great care so wiped me out a bit but still the best decision for both of us !

[@jablot5054]

Why did you end up paying? Didn't he have any assets?

[@z01i54]

@@jablot5054 presumably the assets would have become his anyway if unspent

[@sarahbarnard3672]

Another great video. My father is 92 and has recently gone into a care home; it costs £1000 per week (and this is actually at the lower end of the cost of care homes). His very modest Church of England pension plus his state pension covers just half of this; the rest he has to find from his savings. We are very glad he has the money to pay but it won't last long... Definitely more focused on planning for care costs in our old age now - thank you for highlighting this James.

[@JamesShack]

Thank you for sharing this Sarah. I wish you and your father all the best.

[@tancreddehauteville764]

Is there not an £86k limit now?

[@FirstMM]

@@tancreddehauteville764 No, it was announced in 2021 that it would come into effect last year, but the Tories have have pushed it back by 2 years to the end of 2025. Since they are currently emptying the public purse to sabotage the next government, I doubt it will happen then either.

[@K4rgo]

Greetings from Denmark where care homes are free.

[@ScottishJazzman]

@@tancreddehauteville764Planned for England only, I believe. And not yet implemented.

[@eddied112]

James - this is one of the best videos you've made (again) and should be required viewing for everyone thinking about when to retire. The importance of giving real thought to the questions you raise is essential, as is facing a few uncomfortable truths, like 'when am I likely to die?'. Also, accepting what we cannot change and accepting the future is uncertain but having the confidence in yourself to adapt is what will help people get 'over the line' and retire before it's too late. An excellent video that addresses all these important points.

[@Oppledom]

James you have to be the best finance communicator. I'm of a similar age in the UK and having a large and slightly sobering view of the importance of my pension which I had overlooked massively. I am also grateful that I went to so many festivals and travelling in my twenties though. I work in Retrofit and I really think this couple and any couple should consider those astronomical energy costs. Payback on certain measures alone like loft insulation, cavity wall (though I suspect they live in a tradiation building with those bills) or even solid wall insulation could be just a few years. Solar PV now is an absolute no brainer if anyone has capital and wants to stay in their current home for at least 7 years. Especially effective if combined with heat pumps, EVs and battery storage . Thanks for your work !

[@simon1066]

Timely information for me. I have ended up caring for my 96 year old dad with dementia. I have carers coming in twice a day for an hour each. The cost is £1400 per month. It’s not going to get better, a modest care home will be approx £5000 a month. Basically I’ll have to sell my dad’s house. Make the most of your healthy years!

[@JudiFearn]

My parents recently needed to go together into a wonderful care home which was costing them jointly 10k a month. We paid using their savings until we were able to purchase each of them an immediate needs care annuity using their pension pots. This will pay their care home fees for the rest of their lives, they have their state pensions for expenses and the family home is untouched. They are very fortunate to have built up this pension pot through spending far less in their later retirement years than they had imagined, so it just sat there growing. It was very important to them to provide and plan for their own care costs. The financial side of this care home move has been incredibly stressful to organise, but I am so grateful for their planning and power of attorney well in advance.

[@tlangdon12]

I think your point about them spending far less in their later retirement years is important as many of us over-estimate the number of active years we have left. Once health conditions start to limit what we can do, a lot of discretionary spending falls away. The power of compounding means that money that is not drawn out can, if the investment portfolio is setup correctly, increase quite rapidly. This certaily helps with future care costs. I'm pleased that your parents have managed to find a wonderful care home where they can be looked after.

[@michaeljohnston6811]

I hit most of these considerations. Was thinking about retiring as similar aged colleagues were being cut down around me (late 50s). Decided to give retirement a try from 55 and diagnosed with cancer and then a heart condition within a year. Doing exactly as suggested and tweaking drawdown as we go but hopeful we have a reasonable plan to ENJOY. Spend is similar to the example as are resources. Making it work so far. I would recommend anyone to seriously think, if they have that kind of pot, whether another few years of work to add to it are really that important. If you love your work and it is fulfilling then go for it but if you love one another and want to spend more time together doing things you are more passionate about then run the numbers and try and make earlier retirement work for you. If I need to top up say £10k a year then I can probably find a low wage/low impact job that would give me that.

[@richardshaw4336]

Spot on Micheal. I took a very low stress part time job at 57. Now 60 and really enjoy the sociable side of working. I love my free time though.

[@lawrencer8673]

​@@richardshaw4336what low stress job did you get?

[@richardshaw4336]

​@lawrencer8673 I work 3 days a week doing accompanied viewings for an Estate Agent. I've been an agent for 40 years next year but this is very easy and has little stress. It's really good fun and sociable. Anyone can do it if you can put up with people, like driving and an interest in adding value to the business. Gives an additional income as well. Good luck. 👍

[@lawrencer8673]

@@richardshaw4336 thanks for sharing, I appreciate you taking the time to reply.

[@Mikey_NoCap]

James, 3 years ago I had to help mum put my dad into a nursing home. Poor old boy had and still has vascular dementia. The 12 months leading to that was so hard and thinking about finance was the last thing we could do. Dad’s share of the family nest egg was soon eaten away by fees, luckily in the uk once below a level the local authorities kick in, but we are still contributing over £1700 a month to his care. He has been in there for 3 years now. Mum is now starting to falter as well so potentially she could need more care soon. It is never too early to think about the care challenges, but what I would add is seeing my dad deteriorate so quickly was a smack of mortality for me, meaning I have taken the plunge and retired just last week age 54. Unless you have been through it I would suggest people can go blind into the challenges so I would recommend have the difficult discussions early and often, rather than be forced into action.

[@JamesShack]

Thank you very much for sharing Mikey. Great point around having the difficult conversations early and often. I wish your parents the best and hope you have a great retirement !

[@Sackbutsam]

All the best @Mikey_NoCap

[@brucesurey317]

Thank you James, very interesting. I retired at 59 having planned to retire before 60 and am now 67. The main thing I would add and strongly recommend is for people to look after their health. Not long after retiring I was diagnosed as pre diabetic although I walked a lot and felt pretty fit. I changed my diet and work out every day either climbing mountains, resistance work or walking. I am now the same weight I was at 23 when I left the Royal Navy and feel fantastic. I want to enjoy the years I have left as healthy as possible and will work out till I drop. The other thing as mentioned in another comment is I gave my eldest daughter an LPA in case of the unexpected.

[@gregarmstrong2500]

Any chance of a video on partial retirement/flexible retirement? It seems like the ability to "retire", but still have the option to pick up part time work here and there would make a big difference to mitigating a lot of the risk. I'm 33. Talking with friends, it seems like many people my age aren't looking at a traditional "work until x, then retire" plan. Especially as we see the state pension age increasing over our lifetimes (if we even get a state pension). Many people my age are looking at building their own financial independence and having to do a lot of the sort of calculations and risk analysis that you talk about. We often look at best/worst case scenarios in terms of portfolio returns and inflation rates, but we don't often talk about active measures people can take to mitigate those scenarios at the time. Personally, I'd be happy for many of those years to jump in and out of contract/part-time/self employed work to help balance the books while still having many of the benefits of retirement. For example, if I'm looking at a 3% drawdown rate, could I maybe push that to a 3.5% if I was happy to take a work a couple of days a week when the markets were bad/inflation rates were high? Maybe I don't mind working a few days a week over winter while the weather's bad, but I want to spend my summers with lots of free time enjoying the outdoors, etc? I'd be interested to know how we might assess/analyse these sorts of options. Sorry, I know there's a lot of variables in there. It just seems like all the content I find on retirement is based on an all-or-nothing scenario, which I'm worried many of us won't have the luxury of unless we want to retire at 80.

[@lorainisrael]

I would like such an analysis too. I've worked with retired people who go on part time contracts. It seems to be a really great arrangement.

[@TheNimbleNomad]

Financial planning for your retirement and older years is unbelievably important! My dad has been useless at this and the number of times I have bailed him out of situations is unreal. A solid pension + money for old age care is critical.

[@craftypam9992]

I can't imagine what they are spending all that money on! My partner and I have been retired for some years. We don't travel much, having been there, done that in our younger years, but we have a comfortable life, own a detached house, heated to our preferred temperature, have one car, do whatever we want to do, eat well, etc ... we put £300 a month each into a joint account, from which all household and communal expenses are paid. We just took £2500 out of this account because it was getting too big. Personal expenses (clothing, individual activities and hobbies, gifts etc) are paid separately by each of us. If we spend £1000 a month between us, I'd be surprised. I'm even able to put money into my SIPP & ISA from my State Pension/investment income each year. They need to review their bills - I bet everything except council tax (the only thing of ours which was higher, but it's not something you can negotiate) could be drastically reduced, by changing supplier, or just getting a better deal with the current one.

[@richardlong526]

It is amazing that you can live on that amount. £300 from each of us wouldn't even cover our utilities and council tax.

[@davem.4003]

This really demonstrates the range of circumstances that different families are used to. You have no doubt lived a frugal lifestyle for most of your life and you are, by your own admission, beyond the point of enjoying the early years of your retirement, during which time you no doubt had significantly greater discretionary expenditure than you need today.

[@tlangdon12]

I too was a bit surprised at their level of expenditure, but they follow that rule that "If you have it, you spend it". One of the best pieces of advice I was given was to save first and spend what was left. This kept my expenses under control and made the transition to retirement much easier as my lifestyle got better as I could stop saving for retirement.

[@johnboyginger]

Thank you for highlighting the care issue. Father in law went into home recently. Plans and savings decimated. An awful eye opener!!

[@tlangdon12]

But better to have money to be able to chose a care home, rather than hope that what the state will pay for will be any good. I would want to use my savings to give me a good quality of care in my final years.

[@jablot5054]

Surly that's why you save, to pay for your care?

[@tlangdon12]

Going down to one car is certainly feasible and was a change that we made when we retired. As retired persons, we have so much flexibility that there is rarely ever a time we both want the car at the same time. I'm also happy doing basic car maintenance, which is why we've only spent about £1,000 on maintenance over the last four years. Our car insurance also went down because no longer needed cover for commuting.

[@lorainisrael]

😂 I have 3 little kids and we still manage with just one car. Taking a cab on those rare occasions when we really need 2 cars proved to be a much more cost efficient option. Why would a retired couple need two cars is beyond me? It's fine if the money is not a concern on any way, but if it is, that's tlone of the first things to give up on.

[@nintendokings]

I work in Income Max (basically doing the finances of putting people in care homes) and it’s shockingly expensive. A few years in a care home will wipe out a 6-figure sum

[@MikesGlitch]

Loved this video - very relatable example & numbers. 🙂 It's good to remember that there will always be warning signs before you run out of money, and to be willing to adapt.

[@ghostwheelinshadow]

My parents planned carefully for their financial future, including the possibility of care. This allowed my father to die peacefully at home, and, now that my mum is 96 and has had a bad fall landing her in hospital, I cannot say how much weight it takes off my mind to know that we can afford the best care for the mummy we love so much. (She’s recovering well though!)

[@livinforlessinsingapore3601]

Yours is the best 15 min video on this matter that I’ve watched. You mention the uncertainties. Yet, it’s simple enough to understand.

[@johnloader8611]

This is excellent James, and I believe very relevant to a lot of people. My situation is identical - about 60 with 500-600K in pension and savings, months away from paying off the house and grown-up children flown the coop etc. Also many of my colleagues, friends and family are of the same age, financial situation and all of us have agreed we need to carry on working for quite a while longer.. So it’s great to see a strategy where we can retire now with what we have - real food for thought!

[@JamesShack]

I'm glad to hear you found this useful!

[@AG-so4gl]

Go where your money works hardest for you. And its not the UK 😊

[@jablot5054]

I gave up work recently aged 59, been semi-retired from 53. I live on about £1k a month but don't pay rent or mortgage. I have a great life doing all the things I want to. I'm not sure where people get these expenditure figures from.

[@gadagaz]

I honestly dont understand how someone earns £4k a month and spends £3.8k of it having paid a mortgage off. I mean, surely thats the issue more than anything?

[@aacmove]

I'm with you, although living with another person who has no limit to their spending could encourage you to spend more. I paid my mortgage off two years ago and since then I divert at least 1/3 of my net to savings and pensions. I don't waste money on fashion, but still get to eat out once or twice a month and still have a generally good life. Maybe I missed it but I didn't see in his budget the 1800 or thereabouts income from their government pensions. Because that would mean a drawdown of only 20 to 25k per year from their pensions.

[@thenoodlebuddy]

Agreed. Just under half of my income goes of mortgage, so if I didn't have that to pay I think I'd struggle to spend so much money

[@aacmove]

@@thenoodlebuddy I also failed to understand how their food bill is so high when they eat out all the time. People who are profligate rarely know where the money goes, but also confused how they got 500k with such frivolous spending habits.

[@tomwestcott4036]

James, please do a video talking about DB pensions, their pros and cons etc. I love your videos but as I work for the nhs I don't know how to apply them to my retirement plans. there are millions of us in the uk with DB pensions, i cant be the only one who would find this very helpful.

[@JamesShack]

There certainly are millions of people with DB pensions. The main problem with creating content about DB schemes is that they all have different rules. I could do a video discussing them at a high level, that may be the way to go. Or create a guide or do a newsletter on them in more detail.

[@themiddleagedmillenial4380]

I'll take a stab that the nhs or local government schemes are by far the largest

[@janeknight3597]

I agree. Is our DB pension going to be enough bothers all of us. I wish I had opened a SIPP to run alongside.

[@davidpearson243]

Your NHS pension is gold plated My wife has one she took hers 2 years ago on £17,000 per year indexed linked She has gone back part time and earns more than she was full time She was on a top of a grade 6 if that helps

[@ianwall9152]

How about a high level video about both dB and DC ? Which should you take tax free cash from or should you take it from both ? Does the order matter ? Thx

[@paulbailey6840]

Very useful indeed, thanks James. Your clients are in a similar position to my partner and I so easy to make a comparison. On the topic of ideas for future content I'd like more information on the transition from SIPP to Flexi drawdown. I hold my SIPP and S&S ISA with Vanguard and intend using them both in retirement to help with the tax burden, but have no idea really of how to set this up? A video on this would be a great help to me and many others I'm sure. Thanks again Paul

[@JamesShack]

I will do something on this shortly .

[@RealStAndrews]

@@JamesShack that would be great. Thank you

[@ScottishJazzman]

Dad’s care fees are roughly £60k/yr - 40 year teacher’s pension plus state pension pays him £2100/pm, council pays the standard non-means-tested amount of around £380/wk… there’s a delta of around £1500/pm which we need to fund by selling his house and that will give us less than 3 years before it’s all gone. Planning for future is important.

[@GordonHarrison-vi7id]

Have you heard of CHC. If your Dad is that bad then he should be eligible. If he isn't that bad then I would ask why he can't get care at home ?

[@ScottishJazzman]

@@GordonHarrison-vi7id Not applicable in NHS Scotland, unfortunately. They have a different system, and a full financial assessment has led to the position we are in currently. Thanks though :)

[@MrAlwaysBlue]

I enjoy your in depth analyses, and the fact that you make them freely available. This particular case study is not disimilar to my situation. I have done a lot of modelling on Excel. As you say, we don''t know the future, we can only input our best guesses into the modelling and take a calculated gamble. Like yours, my modelling shows that just 1% difference in returns and/or inflation can make a big difference by the time you get to late 80s. One thing I would say, and what is in my plans, is that if my funds run short in later life, is that I would have a house to sell to pay for residential care. If that becomes exhausted then I would finally expect the state to step in, having never troubled it previously for the best part of a century, unlike many people.

[@michaelbatty4837]

Great to have this type of analysis and financial planning. Too many IFAs expect you to live like paupers and retain you initial capital for inheritance/care. Such a waste. Well done

[@andylowell7405]

I live in Canada but still find these videos very helpful. 🇨🇦

[@chazzdposh]

My grandfather is 97 and is in a care home. He was a doctor in the NHS until retiring at 65, and so has a DB pension linked to inflation of around £3.7k/month. He receives around £700 a month from the government for spending on care (I think...). One of his biggest regrets was that he didn't do anything "fancy" with his money to increase his wealth whilst her worked and was retired. Luckily, the sale of his fully paid-off home and the death of his wife/my grandmother meant that he was ok going into care, but he only went into care when he 94. He was extremely lucky. He was able to sell his home for a very decent amount, and he has only needed to spend money on care for the past 3 years or so. Most people are not this lucky. Save for your retirement.....to the point where your assets don't run out by the time you die, leaving your children with nothing. Save hard.

[@tancreddehauteville764]

Your grandfather was lucky - pension is huge.

[@porschecarreras992cabriole8]

@@tancreddehauteville764all NHS consultants earning about 120k per year and save in NHS pension almost 40% so it grows a lot!

[@tancreddehauteville764]

@@porschecarreras992cabriole8 And the taxpayer has to fund their wealthy retirement!

[@mattjames88]

@@tancreddehauteville764they (we) also pay a large % to receive the DB scheme. They are no longer final salary and normal pension age is state pension age. So not as good as many people think

[@richardshaw4336]

Brilliant video James. One of the most informative and relevant retirement videos I've ever seen. Some of their expenses do seem steep to me but understand its very personal. Car insurance and food bill particularly. I intend to live now and enjoy sensibly and as you say adjust if needed. Having no commitments ie Mortgage & debt changes everything. Thanks for this. Much appreciated. 👍

[@lindseyscott3011]

Exactly my dad's story. 60 years old. Over 1million pound in property, assets and cash. He was worried about the future even though he had a rental portfolio with no mortgages bringing in more than enough to retire. Died out of the blue at 60 and didn't get to reap the benefits of all that hard work! I'm 40 this year and have 15 years (hopefully) to retirement and putting a lot of effort int this

[@bighare4205]

If you want to get your head around why and how to plan your later-life finances, then this is the one-stop video to watch! This really invites you to think about what you want to do and why after full time work. It offers ideas about spending and saving adjustments that can be made and the information available to support informed and comfortable choices to avoid running out of money. It silently but powerfully underlines the fact that these decisions are most often ones to be jointly navigated by life partners and family together. It emphasises intentionality and forethought - and the need to not kick the can down the road for fear of what you might learn. It shows how combining predictions about how long the money might last, and statistics about how long it is likely you will live, gives measured reassurance about the risks of money running out at life-end. Oh, and it makes the point - think about long term care now. Don't wait. Brilliant James! Thanks.

[@rossdowner6885]

As someone in their early 30s who is saving with the intent of building a sufficient initial pension size to leave the rat race for a lower income living, I’d be very much interested in an analysis of what someone should be doing in this scenario and how they can assess the opportunities vs risk with such a larger horizon to retirement.

[@pistopit7142]

Save and invest that is the most important really. The rest you will worry later when you are closer to your "sufficient initial pension size to leave the rat race". But did you ever wonder what number this needs to be for you so you can call it ""sufficient initial pension size"? For me that number is when the folowing condition is met: I am able to still cover all my mandatory annual expenses, using just 4% of my entire portfolio current value, when that portfolio is 50% down (for example due to recession in stock market). Which brings me to another advise you did not ask me: track you spendings. Not just how much you spend but also what kind of spending this is. There are two main kinds of spending in my financial dictionary: mandatory (food/mortgage/rent/bills) and not mandatory (new HiFi speakers, latest GPU, new car or in fact any car). Good luck.

[@tlangdon12]

@@pistopit7142 I agree. The most important thing is to invest! Don't be put off by it seeming to be difficult. Invest in one or two large, well-regarded and low cost funds to get started. Then use those funds to learn more about what you might invest in and how to judge whether the investment is a good one. (This should not involve looking at returns for quite a few years). Few people realise how important costs are when investing. They think that paying 1% in charges per year isn't alot, but if your return on the investment is 7% per year, you are giving away nearly 15% of your return in charges!

[@michaelbunting2637]

Lad, S&S isa, allows you to save 20k per year, this would cover all of your eventual expenses into retirement allowing you to invest the same as you would a pension. The most key part is that you control the money, pension has so many issues, think about it as you are heading down the wrong path for future happiness.

[@MiaJohnson-l4k]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@EthanCarter01]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@MiaJohnson-l4k]

@EthanCarter01 However, if you do not have access to a professional like SUZANNE GLADYS XANDER, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.

[@EthanCarter01]

@@MiaJohnson-l4k Oh I would love that. thank you.

[@MiaJohnson-l4k]

@EthanCarter01 SUZANNE GLADYS XANDER.

[@MiaJohnson-l4k]

Lookup with her name on the webpage.

[@wgj4813]

I retired at 60 and did a calculation spread sheet with no value increases except 1 % and just made the assumption that pensions from known sources were increasing at about inflation rate so all values right up to at least 85 were shown at 60 year levels except investments with a 1 % annual increase. I could then back calculate to give me an annual salary as at 60. Even calculating tax to pay. I did a reduction on expenditure when works ceased and saw the reduced figure matched the annual value so i retired - why work? "Loose cash" was invested and beat inflation by more than 1% . That happened 15 years ago and i am very pleased with myself and calcs.

[@EcomCarl]

Jack and Jess's approach to refining their retirement planning with a focus on sustainability and risk management provides a valuable blueprint for others. It's a stark reminder of the importance of balancing realistic financial expectations with the desire to maintain a certain lifestyle. 💼

[@GaryJDavies]

Absolutely outstanding 👍🏻 Thank you James - this so closely mirrors my own situation it’s a little weird! So, so useful 🙏🏻

[@ObediahWashe]

This was useful preparation for my R06 financial planning exam tomorrow. Thanks James 🙏

[@stewartmacdonald601]

I notice when doing the budgeting you have not given any budget for purchasing new cars. Sure, they currently own their own cars, but if they live to 90, then that's 31 years of retirement. Unsure their current car will make that withour significantly more maintenance over the period. So I think it would be wise to pop in some value for a car payment throughout retirement. Cars are very expensive just now, but even £300 per month would get a reasonably nice second hand car to keep going through retirement.

[@johnimal1]

They will receive bus passes long before then that they could use. Alternatively if they are in good health that they are still able to drive in their 70,80 or 90s then they certainly won't be needing their care home money during that time. So some of that could be filtered towards car upkeep/ new car. Chances are however that health will deteriorate and the car will go long before they turn 90

[@stewartmacdonald601]

@@johnimal1 While this all could be true, none the less, for someone who seems to be all over the detail as much as James, this seems like a significant potential expense to simply overlook. The fact that a bus pass is coming does not necessarily mean that they should get rid of their vehicle. You don't know where they live. That was not divulged. The local bus service could be poor. Maybe a car is an essential. Maybe it isn't. But it shouldn't be overlooked. A £300 car payment is an extra £3,600 a year that needs factored into the calculation. And while it might not be required every year of retirement, it might be.

[@robincandy7064]

@@stewartmacdonald601 There doesn't seem to be any consideration for significant one off expenses. Changes of car, changes to the house, marriage of children, private medical operations (hip/knee ), funeral costs etc. There hasn't been enough consideration paid to what they will be using their new found time for outside of getting a gym membership and spending more on holidays. Their day to day expenses have been entered as lower and there's only an £80 a month allowance for additional leisure activities (less than they currently spend on newspapers). So jack is going to have to fill his time doing things that don't cost him any money. The model suggested also requires them to throttle in the spending at age 75 regardless of whether they want to or not as by that point they have burned through circa 70% of their investments. Their post 75 income is largely dependent on the state pension (which may or may not be triple locked by then). When one of them dies after the age of 75 the remaining investments and one lot of state pension won't be sufficient to cover the expenditure that they've indicated is essential so the survivor will have to downsize.

[@JohnStanley-m6x]

I love your videos, James, and frequently share them with friends and family. I appreciate your acknowledgement that the majority of the population are not loaded and simply want to make the best of what money they have managed to save. Keep them coming.

[@zedzeduk]

Great video. One question about the budget sheet you have (and sorry if I missed it): don't they have to factor in money for a new car? I mean .. maybe they won't need a car beyond 85 or something (in which case all the money goes on taxi's or something else) .. but they'd need at least 2 cars purchased during retirement, maybe 3. Obviously everyone has a different idea of what a "decent car" would cost, and in retirement they may not need anything "fancy" or new, but I still think they need to plan in £10k-£15k spend every 5 or 6 years at a minimum.

[@JamesShack]

As part of our advice process, we separate out ongoing costs (things that happen every year) vs one-off costs, even if they happen several times over a lifetime. We keep one-off cost estimates in a separate list. This means we can create the exact amount of income required to fund their monthly cashflow. And then, as the one-off costs come over the horizon, raise money for that separately. I didn't have time to go into this in detail in this video. But it's certainly something that needs to be taken into account.

[@warreng5487]

@@JamesShack ⁠I had the same thought while watching this video. Just to clarify, does your reply mean that this was taken into consideration in this case study and they would have enough money to purchase 2 or 3 cars within retirement?

[@tlangdon12]

@@JamesShack I deal with these one-off costs by saving from my retirement income. I have a car replacement fund in a Cash ISA that I pay into each month, so that when the car finally needs replacing (it's 18 years old), I will have the money ready. And I do the same with replacing the boiler, furniture and appliances and even the roof of my house, although the money for this is in Stocks and Shares ISA as I'm not expecting to need to replace the roof for 10-15years. I can't be very precise about what these items will cost, but I know I will be in a better position if i have budgeted to save for them.

[@jablot5054]

Why do you need to have a new car every 5 years? Get a 3 year old car at aged 60 then run it until it becomes to expensive to maintain 15 years . At age 75 just use public transport as it's free .

[@zedzeduk]

@@jablot5054 I don't think people need a "new" car every 5 to 6 years, but if you're starting with a 3 year old car then after 5 years (8 years in total) it can get expensive to maintain/keep on the road. i.e. every 5 to 6 years spend £10k-£15k on a "new" (not brand new) car. Also ... not everyone has public transport near them, and good luck exclusively using public transport for all travel when you're 75+ - I really don't think that's practical, unless you live somewhere like London with the underground. Not saying that cars are a necessity (public transport + taxi's can work out cheaper if you're only "out and about" once a week) .. but my point was (in general) that there needs to be an allowance for "transport" in your model, and for most people with will be a car, and one that needs replaced.

[@burnt9382]

Hi James, could you do a video for 18-23 year olds. How you would plan everything from the start with all the knowledge you have now. Like a step by step, best things to do financially. Great video!

[@JamesShack]

Hopefully this is what you're looking for: kzbin.info/www/bejne/Z2HQdGmOjaibkKssi=PatYwmZomotUS7y9

[@MrKlawUK]

can that apply as a ‘parents guide’ when trying to get the message across to kids out of uni so they start saving early?

[@soi68]

Live below your means cars party holidays watches etc. Invest in property and isas all that but most importantly invest in your education or in business that adds value and income and grows. Take advice from successful friends.

[@maxflight777]

Buy property. Invest in your career. Take risks

[@3thinking]

What about large capital expenditure needed during retirement? The car needs replacing in 5 years time, the boiler fails and needs replacing, perhaps the double glazing all needs replacing at the same time?

[@bobwilson4195]

Am 68 and retired at 65 due to Covid . I have worked on a spreadsheet every year and budget for the 12 months . I own my house . I get state pension . I have shares which I drawn one a year to cover my yearly expenses . I know what I need put in to a separate bank account for bills via direct debit only I put the full amount for the year. I know what my energy cost is every month and compare this year against last year +/- . I never panic about any bill coming it and have a small reserve for emergency. The only debt I have is a £200 pm for PCP .

[@sound_lounge]

A great video. Back in 2020 as the covid pandemic hit my dad was diagnosed with dementia. He had my mum there to look after him. Unfortunately my mum caught Covid in December 202 and died from it. This left me and my wife, I am an only child, to try and work and look after my dad. Once my mum had died dad went down hill rapidly and within 6 months we had no option other than to move him into a home at a cost of £1550 per week. This was a huge shock for us in that in under a year we had gone from having healthy happy parents to having to deal with the huge burden of managing health and finances. It came out of the blue. The stress of it all nearly finished me off and my health suffered badly over it. Don’t put off considering the future and what could be round the corner for your children or family members to deal with and don’t underestimate the financial . I would not wish what we went through on anyone and especially not my children. This has made me reassess my life and take the decision to retire now, at 60. I am doing everything in my power though to ensure I do not leave my children with the huge emotional and financial worry we had with my parents.

[@JohnHoganN8]

TV licence £50 per year (cheap streaming subscription?)…sign me up!! Great video! Exactly what prevents my friend in the US retiring, the inability to embrace uncertainty. Makes me cringe when people say they are expecting an inheritance. Parents may need that money for their own care.

[@bordersw1239]

It was £50 per month.

[@philipmumford7871]

I presume that's internet/media and licence.

[@gerry2345]

I like rhis vid. Good insight and good information on this case study to make some plans ..thank you

[@johnm3413]

Thanks for this James. Very relatable and very helpful as this example is very similar to our situation. One question I’ve had for a while watching your videos, could you do a video on the retirement software you use to do those graphs showing the drawdown during retirement. That’s the bit I’m struggling to work out.

[@JamesShack]

The software I use is specifically designed for advisers. www.timeline.co/ and planwithvoyant.com/uk/home . There are lots of free tools available, although they are mainly US-focused.

[@bobmclane3017]

Hi James, fantastic video as always 👍. I'm 54 this year and plan to retire asap for the very reasons you mentioned here and in previous videos (family, friends illness/death & that length of time doing things you love with the people you love etc). I use all your spreadsheets as a guide for our retirement and spending, they are fab. I noticed in this one the budget planner for Jack & jess also has columns for spend now and post retirement, is that version available so you can see what you spend now and what you could decrease once retired? Keep the videos coming they really help people make better decisions or at least think about the future more.. Thanks BoB

[@jocar-1735]

All good reasons to retire early, and there is another reason to retire early if you can afford to do so and that reason is that if you don't need the money from work, why continue to work and deny somebody else that salary who might be in need of that money ? If someone has enough funds to retire but wants for whatever reason to carry on working, why not work for no money ? I retired at age 55 and this enabled 2 engineers to move up the career ladder and for a new graduate engineer to be recruited, so 3 persons benefited from my retirement as well as myself. I worked alongside people in their 70's with multi million pound pension pots and I consider their continued working with a salary to be outright selfish.

[@jablot5054]

​@@jocar-1735that is very thoughtful of you. Everyone should be forced to retire at 60 to give the younger ones a chance. Stay on one day a week as a mentor or trainer.

[@labrun4633]

James, great content and delivers really well - keep them coming, thanks. Can you do another video on the best way to retire whilst also earning, perhaps part time role and likely to be on a very low wage, what would be the tax and pension considerations. Just thinking about filling the gap between now and the state pension with a mix of retirement travel and part time low wage work.

[@DonaldUrquhart-ds9ir]

Thanks for a really good, accessible and insightful video. My first post. Your videos have helped me to address so many questions and concerns around my own partial retirement. Your values driven and evidence based approach connect so well. Well done, thank you and please keep doing what you do. It has encouraged me to seek professional (CFP) advice not too far from you (Joe C), and experience to date has been really great. Wish I'd seen your videos decades ago. Too bad! Never too old to learn 'new tricks'.

[@JamesShack]

I'm glad you're finding the content useful, and that's great feedback for Joe! 👍

[@nocathedral]

Aha.. this one is actually quite close to what I have in your retirement planner spreadsheet. I'm 40 and hoping to retire at 59 when the mortgage is paid off. Regarding retirement expenditure, a 25% reduction at 75 seems like a big cliff edge to me. I think I've been influenced by seeing my own mid-70s parents show no signs of slowing down. Currently we have pencilled in £37k from 59-85 and then £32k from 86 plus... to me it feels like 85 would be a more accurate prediction for when physical limitations are likely to affect ability to travel, etc. But who knows!

[@robbybroon4904]

Have you looked at the FIRE movement? Financial Independence: Retire Early? On track to retire in mid-40s so looking at budgeting for that would be interesting to hear from you.

[@tonyk3654]

Amazing content James,we have learnt so much watching your channel,keep up the great content.

[@JamesShack]

I will do! Thank you for the comment!

[@MrKlawUK]

I’m actually surprised at this positive outcome (relatively, maybe with some adjustments and flexibility in drawdown). I’m hopeful of a similar amount, plus a small old DB income to help so this is a small reassurance. MIght be in touch when we’re a little closer

[@elephantandcastle838]

According to my calc, someone would need around £240k (so £480k for a couple )in todays money, to buy an RPI linked annuity (not enhanced ) that would deliver the same income as full state pension, on today's rates. May be useful in quantifying its worth relative to your pension pot/other investment pots. Unlikely that the RPI link will be dropped in my view. Its future taxation post crystallization/state pension age thats the big unknown..

[@AnthonyMyland]

Love all the videos James. Excellent. Thankyou.

[@winflip]

your historical sequences should take into account current cape ratio. If the market is at all time high, failure rates are much higher. The reverse is also true.

[@MsBarcelona99]

I like the examples or you show here James. Could you add the state pension into your examples going forwards? I am 61 and retired 3 weeks ago, I have a cash bucket for 3 - 4 years and a decent pension pot to follow, but that is for my partner and me. We both have a state pension too, once we reach state pension age of will change our finances considerably.

[@robertmarsh3588]

Thanks for posting. At almost 60 this is very pertinent. Ironically I was hoping to be included in a round of redundancies at work which would have kick started early retirement with a very nice sum but no such luck so will have to be brave enough to jump myself at some point as I think (and an IFA confirms) I have enough to meet my needs. There's always a worry re the stock market and a huge tendency to work one or two more years though.

[@JamesShack]

Good lucky taking that next step! You'll never look back.

[@michaeljohnston6811]

Leaving on your own terms is so much healthier for your mindset than waiting around to be pushed. If you can afford to: jump and don't look back (I retired at 55, currently 58).

[@tlangdon12]

@@michaeljohnston6811 I was about to hand my notice in when I got the whiff of a reorganisation so I didn't resign, and was made redundant two months earlier than I would have been happy to leave anyway (I was going to give my employer six months notice). I remember the conversation with my boss being very odd as everyone else she had had to tell that they were being made redundant was upset. I was delighted as they paid me to retire early!

[@montyspearo]

There is still option of going back to work even if part time in early years if finances aren't working out.

[@thegreatbrankoni]

These are such generous videos. Thank you.

[@jeromesand]

i'm 57years old and already have $690,000 saved and I'm about to retire in two years but I'm worried about rising inflation. Is this enough for a very good comfortable retirement,I’m looking at investing in estates and stocks maybe

[@HoskinsShanellNicole]

comfortable retirement depends on your lifestyle... you should consult with a fiduciary to explore options.

[@richardhudson1243]

Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!

[@JacobsErick-u8r]

Pls how can I reach this expert, I need someone to help me manage my portfolio

[@bent4838]

57? You look 77 😢

[@richardhudson1243]

@@bent4838 that was my father

[@lfcdw4666]

Thanks James, another great video! What are your thoughts (generally speaking) on AVCs for tax efficiency vs stocks & shares ISA for flexibility?

[@mrt1878]

Excellent video James. The recent news around 1st time buyers being in the most difficult position for 70 years is a situation many early retirees with children may need to consider in terms of helping children get on the housing ladder. Most will need to remove a lump sum quite early in retirement to help fund this. Would be useful to see scenarios where for example a 30K/50K lump sum is removed from the portfolio at different points to see the impact this has on long term projection and any options/choices to make this smoother.

[@tomra01]

Thanks James. Is there any retirement planning tool that you would ecommend for the lay person? I see financial planners recommending NewRetirement and others but they seem to be more US focused? I see the value in doing this in order to have better, more focused conversations with a paid financial advisor

[@maria.ciorasteanu]

Very good video, as always. I follow your videos closely, and i love the actual example calculations you do. It's all very factual. Thank you. My only criticism is that i would like more videos released more often. 😂

[@TallPaul992]

My dad was born in 1924, and had a healthy life right up to 89. He was one of the first of his age to be offered what today we know as a defined benefit or final salary pension. At 65 back then you were required to retire as your contract of employment came to an end, but my dad immediately went out and got a part time job in retail. He did this for a further 15 years before stopping around the age of 80. He didn't necessarily need the money but he always said it gave him purpose, and a bit of beer money. The last year of my dads life were unfortunately spent in a home. As James asked, how much is a typical bed in a private home going to cost? Well in 2015 that was about £1000 a week. No frills. When my dad did eventually pass away, the was a residual £25,000 left to pay which was taken from the estate. I would expect nowadays that you should be budgeting at least £75,000 per year to stay in a old peoples home, and depending on how many years you have to retirement and the possibility of that need in your later years, you should inflate that number by at least 2% per year.

[@malcolmosborne1592]

Thanks so much for these uploads. Recently completed military service and looking at how best to invest going forward. With my military and full state pensions I should be ok, but want to be more than ok. 22 years until 65 to create a good bonds/stocks and shares portfolio, or if needs be (if health allows) work until SPA.

[@markbutcher9760]

Hi James, great content and also great budget template. I think you may have double counted on cell C90 (+K51) as you have included that in the 'Essential' formula F89 which is =SUM(F27,F39,F51,F63,F72,F80,K51) let me know if I'm going mad!..... but my numbers then add up if I remove it from K51 from C90 Thanks !

[@JamesShack]

K51 is the sum of all your insurance premiums, which are always considered to be essential.

[@marlened520]

Great video James, always so well explained. I recently experienced the situation with a family member. We had to put our grandmother in a full time care facility costing more than 30K euros per year (we live in France). For now, it is managable, but we are realising it is not sustainable over the next years. So we are focusing on getting a recurring revenue through real estate to support these fees. I wish it was planned before, causing less stress on my family to find quickly a long-term solution to finance it. I promised myself I will not make the same mistake with ny parents and plan my financial future accordingly. Thank you again for your advice, it helps tremendously to achieve this goal.

[@JamesShack]

Thank you very much for sharing, I hope others can learn from this example. All the best to you and your family.

[@RichardMeikle-uv6un]

HI James - I very much like your retirement planner, which works very well for me. Will you be updating to version 3.0? Many thanks in advance!

[@robdjones]

Great video and helpful information as ever 🙂 Could you share the version of the budget planner that has the before and once retired costs separated out ?

[@John-ww2fv]

My son has been able to help with such issues through a CFA he was able to link me up with. Since hiring my advisor? It’s been better handling such financial turmoil that may happen

[@Backtoreality1873]

This might be your best video sir. Nice job thank you!🙏

[@JamesShack]

Glad you think so!

[@mtpaley1]

A video on how fund allocation to UK/EU/US/ROTW would be interesting both on the risk and historical rewards. For instance S&P500 vs FTSE100. Risk vs reward on putting money into non UK shares/schemes and the best way to diversify risk by spreading it around the world.

[@naumanzakir8005]

What about multiple mini retirements? Like 2-3 months of time off work to do bucket list And see how they would spend time and money when off work?

[@stuartdonald2302]

Both my parents ended up in care, they had to fully fund their care and in total they spent over £400,000 on a modestly priced care home. My sister and I eventually had to rent out the family home to help cover the costs. It was all rather stressful and very sad

[@JamesShack]

Thank you for sharing.

[@tlangdon12]

I'm sorry this was stressful, it's never fun being forced into becoming a landlord or having to take responsibility for other people's money, even if it is your parents. I'm also sorry that you are sad - it sounds like you acheived a very good outcome for your parents.

[@SandyCat39]

This is really useful information. I am only 43 but am hoping to retire as early as possible because my dad died at 42 and my husband died at 47. Neither had a chance to enjoy retirement.

[@MPD90]

Useful video. I'd be interested to know what an annuity could have guaranteed them, versus taking the risk & reward associated with keeping their pension fund invested.

[@DianeCarroll111]

Hi James, in your illustration, did you include the state pension? Could the state pension with a paid off mortgage be an absolute worst case scenario for the couple? Thanks

[@JamesShack]

Yes, it does include the state pension. So, if they do completely deplete their investments, they would still have that to rely on.

[@DianeCarroll111]

@@JamesShack thanks

[@stephengrant6394]

Great video as always James. I’ve seen a lot of content to reaching your retirement financial goals and expenditure analysis following retirement. What I’d like to see is what I do with that retirement pot e.g. SIPP or draw down and best funds to use. Thanks again

[@JamesShack]

Will do something on that soon.

[@Sabhail_ar_Alba]

Wise observations which definitely resonate with my situation.

[@BjorckBengt]

I live in a Nordic country. Elderly care is paid through taxes. Our social system takes a lot of stress out of life. Few people here complain about high taxes because they understand that the cost of paying taxes is much less than having to take that responsibility individually.

[@tubsleeso9207]

When you say people laugh it off about shipping oneself off to Switzerland before getting to stage of needing care - what exactly are the obstacles? Taking emotions out of it, a little bit of financial hit - buying a one way ticket and paying for the services out there - so that should be in the "plan". What else would there be to consider, if you don't want your pot going to care fees?

[@fruitloops3718]

Planning for your last years is more important than planning for the fun you're going to have when you first retire. My mother just passed at 88 and her last years were rough due to dementia/alzheimers. All I can say is I hope I pass prior to losing my mind. I don't want to do this to my family. The banks aren't cooperative and the excuse is we want to make sure the money is going into the right hands. Lawyers can help with this but nothing about it is easy. Before getting to that point I suggest you allow someone to takeover and give them full access to the funds otherwise appoint a fiduciary to manage funds.

[@darrellmf]

I was fortunate to be able to put my Mother into the actors care home which reduced the costs. But there was still a huge amount of planning needed simply to manage her assets tax effectively. Plan for the worst and hope for the best but don’t stick heads in the sand. Care home costs are expensive and it can be a lottery in terms of cost versus quality. Switzerland sounds good! 😬

[@stevebates2393]

Great video James, very informative and quite relevant to my current situation.

[@terrybrown3486]

Thanks for this. There never seems to be any use of insurance? Seen a broker Castleacre that offers a life policy that pays out if you go to long term care and a pay out on death to cover inheritance tax. Should you be looking at this as part of the advice? Thanks T

[@spartacusptolemaida]

Another excellent video James. Would you consider making a review video of vanguard’s lifestrategy funds in 2024? Thanks.

[@johnenglish929]

Very interesting. To what extent have Hunt’s changes affected your long term projections ? Almost anyone with savings who receives the full state pension is now a tax payer and the tax free allowances on interest and CGT have been cut dramatically. Many in retirement will get a lower return in future than they might reasonably have expected to generate.

[@paulroberts1807]

Where is the template to complete the budget - how do I access?

[@myleswalshe3451]

Thanks for the video James. With regards to protecting yourself, or more to the point your family, it is worth considering a care annuity aka Immediate Needs Annuity. It can be a gamble as with any policy however it means you should never chew through your savings as the annuity will cover your care costs for life. There is of course the cost benefit analysis of whether the annuity costs as much as you have in savings but it is a surprisingly unknown product which could save a lot of heartache.

[@drlodge]

I am an early retired risk manager and I approve this video.

[@oggodisnonamefree]

Why do you keep referring to linear returns assumptions in this video (which is excellent)? Compounding returns make a vast difference to the outcomes over 30 years.