Pension draw-down calculator
Discussion
Annual Growth !! If only. I did all the scenarios a year go as part of long process of taking a cash sum rather than a DB employment pension. Came out of it in Feb this year .
As part of that you do scenarios based on very strong downturn and high inflation to stress test your fund . The plan is the worst case examples never arrive.
I appreciate absolutely it's a long term investment.
The worse case examples were based on no growth and 5% inflation .
I would take that right now
As part of that you do scenarios based on very strong downturn and high inflation to stress test your fund . The plan is the worst case examples never arrive.
I appreciate absolutely it's a long term investment.
The worse case examples were based on no growth and 5% inflation .
I would take that right now
This one is quite a good one for back tests / stress tests using 130 years of data.
I’m using 90%+ success as the target.. some might want 100%.
https://www.2020financial.co.uk/pension-drawdown-c...
I’m using 90%+ success as the target.. some might want 100%.
https://www.2020financial.co.uk/pension-drawdown-c...
cliffords said:
The worse case examples were based on no growth and 5% inflation .
I would take that right now
So true - double digit inflation and negative growth is the thing of nightmares - and this is my first year of retirement.....I would take that right now
Everyone needs to remember that the word 'calculator' is a bit misleading - they are estimators, that can be back tested against numerous historical scenarios, or you can make up future ones, but they are always just a guess.
For simplicity, most of mine was just done on a spreadsheet at current values - which is basically growth = inflation.
Just input your numbers into this compound interest calculator
https://www.thecalculatorsite.com/finance/calculat...
https://www.thecalculatorsite.com/finance/calculat...
DriveSnowdonia said:
Thanks for all the suggestions. The one looking back over the last 120 years was interesting. Some other good ones for sure but all seem so complex with so many factors to adjust. I get that life is complex and unpredictable but that's precisely the reason I was looking for the simple projection tool that cut out the complexity so that a clear baseline guide can be established. Anyone know a calculator that gives simple projections based on the following factors only?
I'm struggling a bit to see the point of what you are trying to do. Take one example. The worst case has the money running out twenty years early. The best case (although arguably dying with too much isn't a particularly desirable outcome) has the person dying with around 8 times the starting pot (in real terms).
Given the uncertainty and complexity around retirement planning, I would suggest attempting to (over)simplify is probably not worth it.
I've always found the Which calculator quick and easy to use.
https://www.which.co.uk/money/pensions-and-retirem...
https://www.which.co.uk/money/pensions-and-retirem...
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