The plan is to invest 100k to earn a ‘pension of between 14 and 16k and retain all the capital.
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.
Oct 22
Let’s be kind and use the figure of 4k, u would need a fund of 400k to buy
an annuity of 16k pa and u would have to donate all your capital to a pension provider.
If u intend to follow the 4% rule u would also need a fund of 400k but u would retain the capital.
It’s madness to me but u may have a different opinion, different strokes for different folks.
One fact is that if u invest 100k in a tracker u will not have a fund of 400k after tenyears, so GL if that’s your strategy as u will need it.
Thanks for sharing. I read many of your blog posts, cool, your blog is very good.
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.