To All The Retired People Out There15 Jun 2021 10:00
Serious question….
I am 53. Have a sizeable pension. Wife has a sizeable pension. Both have a very reasonable ISA. and both have a reasonable investment/ trading account.
My question is….
What is a realistic annual return on the stock market with logical diverged investments.
The “rule of thumb” has always been retirement you can assume you can take 4% per annum and never run out of money….. is that “true” or can you take 5% or 6%..
The logic is that the 4% every year you add inflation… but why would I need the same amount of money with inflation in 15 years when my lifestyle would have dramatically slowed down.
During lockdown we spent about 30k a year.
Before lockdown we spent 60k a year.
So does that mean I need 750,000 to 1,500,000 depending on my lifestyle ? Or can I use a 5% rule therefore being 600k to 1.2m.?
I know this isn’t RR but would appreciate views from anyone who has actually retired.