The 10 year plan.

The current plan by re-investing all earned dividends is to have final dividend pension of 14k – 16k, it could be higher but let’s work with 16k.

Based on seed capital of 100k with no further cash added to fuel the fire.

The total pot with another 9 years dividends added should be over 200k but as that’s the unknown, let’s work with 200k.

Under current tax laws, u could withdraw 25% tax free, either for a new car or if u need the income to live on re-invested in a ISA, replicating the Trusts sold or higher yielding Trusts.

(U need to make an allowance for inflation but most of the Trusts will gently increase their dividends).

The dividend take from your pension would reduce by 25%, 4k.

12k of dividends pa, of which u could withdraw using a further 25% relief of tax, as long as current tax law remains the same and your dividend stream remains similar.

One problem for the blog is that the last Labour government taxed dividends inside a pension and may do so again, as it raises a lot of cash (to waste) for no effort and are likely to do so again.