Retirement Stacking Goals....
I'm currently shoving around £300 a month into my SIPP, and am just wondering how much this is going to yield me in the future...
There's a lot of variables, but let's assume a 5% return, which is a decent conservative estimate....
£40K after 8 years...
(well, near enough)...
The compound calculator shows in dollars, but it's £££s for me, and it's nice to know hat with even only 8 years, by the time I am 60 just a meagre £300 a month would be £40K, near enough....
NB that £300 a month includes the sweet little tax rebate one gets for SIPPING...
Options...
Well at 60 years of age I then have the option of...
- Keeping on stacking
- Assuming a 5% return I could take out £2K a year and maintain the capital.
- Drawdown around £6K a year and simply burn the lot in a bridge to my pain state pension...
TBH option three doesn't sound that appealing - £6K with nothing left after 8 years sounds like a very bad move compared to option 2, a little £2K sweetner a year and all the capital left.
Now Obvs that capital amount will be value-eroded with inflation, but option 2 is still sounding like the best one...!
In short, I am favouring keeping on earning past 60 to maintain the capital.
That's no longer too onerous a prospect since work ain't so bad anymore!
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It is amazing to think that putting away just £300 a month can result in such huge savings over eight years. I totally agree, keeping that money while also earning an income is definitely the best approach.
the compounding will go on, though, even if you don't add any more capital?
Well, or you can go with HBD and have 15% interest. Like that, you would gain 21k more.
I just had a letter about being able to draw on one of my private pensions soon. There's not a huge amount in there, so I may let it grow for a few more years. I have others with a lot more and my pension manager is looking to take over managing more of them for me. You just need to keep track of them all.
Do you not have another pension from the old schooldays? I am putting in a chunk every month, I get a further 2x what I add.., its a nice perk.
Oh yes the teacher's pension is pretty good the MP one too - this is just topping up really!
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