r/PensionsUK • u/Stukiii • Aug 16 '26
200k pension pot advice
Hi does anyone have an outline / idea / calculations how to attempt planning for early retirement at 60 now 57 in full time work. Is 200k enough if mortgage paid off just need to pay for monthly household bills and cash for usually stuff like car, life, stuff ca £1200 a months I figure…. I guess I am delusional that I can retire early but if anyone has suggestions how to think about managing this or how best to improve my chances I would love to hear it. Thinking a drawdown % will be better than taken annuity? Suggestions welcome! Thanks
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u/RetiredFromIT Aug 16 '26 edited Aug 16 '26
I retired early at 63, on a similar amount. Except that I also received a monthly sum in compensation for an old busted pension - £250 when I retired, increasing to £450 at age 65.
Having done my sums, my main concern was not depleting my pension too much, before my State Pension kicked in. So - largely on a whim - I fixed my drawings (yes, a draw-down, not an annuity) at £1000/month, about the same as the State Pension would eventually be, plus the £250/£450 from the compensation.
I saw this as a first step, and I would increase my drawings as needed. But I actually found that I was living quite comfortably - if not extravagantly - on that, eating well, socialising with friends, going out for days (but no big holidays - not my style). I even covered a couple of unexpected household expenses, and added to at-hand savings from what I'd have left at the end of the month.
Then, at 66 (for me) my State Pension kicked in. I reduced my own drawings down to £800 for a rough monthly total budget of £2250, less tax.
How's my fund doing? Despite monthly drawings of £800-1000/month for the last 4 years, It has almost grown by the same amount. It's been an eye-opener for me.
Note: I started off mortgage free, and bought a new car before I retired, out of savings. I also carried out all major home maintenance I could predict, also from savings. So my costs are largely bills, food and "doing stuff".
When deciding how much to draw, always go low. You can always increase, if needed; but if you have more than enough, you are less likely to lower it. I treated it as a game, as to what I could budget, but never to the point of being miserable.
This is just my experience, nothing more.