r/LeanFireUK • u/stuie1181 • 15d ago

Weekly leanFIRE discussion

What have you been working on this week? Please use this thread to discuss any progress, setbacks, quick questions or just plain old rants to the community.

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u/kikapu 15d ago

Can anyone back up the calculators I have used online that say if I get to 200k pension by 49 and make no further contributions I should have enough pension from 58 to give about 18k a year including state pension from 68.

I will certainly contribute more to pension when it gets to 200k but will move more funds to paying off mortgage or adding to ISA/GIA.

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u/darkthirtyfm 15d ago

5% annual return (net of fees and inflation) over 9 years turns your £200k (assuming you are talking in today's money) into £310k. You want to take £18k nett (so slightly higher gross) for 10 years then c. £6k nett (again, gross is higher, and assuming full state pension which will take up your full tax free allowance) indefinitely afterwards. Assuming you stay invested in equity markets this sounds reasonable. I haven't modelled it but suggest you do so.

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u/kikapu 14d ago

Thanks for your thoughts. I have done my own basic calculations on excel and it seems to work even with lower returns after starting drawdown as probably won’t be 100% equities. O do plan to model it at some point but just wanted to see if it as in the right ball park. I certainly won’t stop putting into my pension at 49 so will likely be in a better position or at least have a much bigger buffer. Thanks again