The income target for 2024 is 9k, which will be beat.
If we use the figure of 9.5k, re-invested at 7% compound growth this would equate to a ‘pension’ of 19k in ten years time. Much better if u have longer in your accumulation stage.
An option would be use the funds to buy an annuity currently around 7% per annum. The figure in ten years time is the unknown, it could be higher or it could be the same as 2022
Canada Life figures show the 65-year-old with a £100,000 pension pot could buy an annuity linked to the retail price index (RPI) that would generate a starting annual income of £3,896. That’s up from £2,195 in the New Year following a 77% spike in rates this year.
That’s a huge gamble on the income for the rest of your life.
I forget to mention if u buy an annuity u have to donate all of your hard earned but with a dividend de-accumulation plan u keep all your capital.
The amount of capital will be substantial as u re-invest your dividends but the actual figure is of no interest as u never intend to sell any of your Trusts unless in an unseen emergency.
As u approach your de-accumulation stage u might want to invest some of your earned dividends in Government Gilts if u want to withdraw a specific sum on a specific date. It’s your hard earned and there are no pockets in shrouds.
Stick to your plan until it sticks to you.
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