Retirement Stacking Goals....

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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....

Screenshot 2025-08-09 at 12.27.13.png

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...

  1. Keeping on stacking
  2. Assuming a 5% return I could take out £2K a year and maintain the capital.
  3. 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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7 comments
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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.

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the compounding will go on, though, even if you don't add any more capital?

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Well, or you can go with HBD and have 15% interest. Like that, you would gain 21k more.

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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.

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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.

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Oh yes the teacher's pension is pretty good the MP one too - this is just topping up really!

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