How Much Will My Pension Pay Me? (Different Fund Sizes)

I have tested different withdrawal methods using real market data to show how much you can withdraw from your pension.
Well known methods like the 4% rule FAIL more often than you might think. Using Voyant's cash flow modelling software, I show how long your income could really last.

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This video is for education purposes only and does not represent financial advice. When investing, your capital is at risk. Investments can rise and fall and you may get back less than you invested. Past performance is no guarantee of future results. If you are unsure of what to do, always seek advice from a qualified financial adviser.

✅ ABOUT THIS VIDEO ✅
How much income can I get in retirement? 🤔
How much will my pension pay me? 🤔
How much do I need to retire? 🤔

These are all common questions, with few definitive answers. In this video I use Voyant's cash flow modelling system, one of the most powerful financial planning software tools in the world, to clearly demonstrate how much income you can take from your pension and other investments without running out.

I look at retirement funds of £100k, £250k and £500k.

Some people say you should just take out the long term average growth, others use the much lauded '4% rule' - I show exactly how these REALLY do by using forecasting based on historic performance and volatility.

If you want to know how much you can safely withdraw in retirement, or how long your income will last, or whether you have enough to retire, start with this video!

⏰ TIMESTAMPS ⏰
0:00 Start
1:08 The Income Dilemma
2:09 Assumptions For Withdrawals
3:06 £100k Pension Pot - Maximum Withdrawal
6:15 Standard Deviation Explained
8:45 The 4% Rule Tested
9:58 What Is A Safe Withdrawal Rate?
11:30 £250k and £500k Pension Pot Withdrawals
12:35 How Can You Increase Income?
14:34 Other Considerations For Retirement Income

[chrisbourne]

Hi all thanks for watching. With annuity rates improving, do you think they will gain in popularity again?

[markramsay]

Great content. At 53 I have suddenly become addicted to all this - just wish I had showed more interest years ago!

[chrislow]

What a legend. Your videos are so easy to understand and make so much sense. 🙏🏼

[bigdawg]

Really good content and clear illustrations with simple straightforward examples, no hard selling of courses and egoistic comments. A real pleasure to watch. Look forward to looking through some of your other videos. ....oh and earned a sub with all notifications turned on!

[vernonwells]

Very useful Chris, very helpful to look at expenditure in retirement and the potential adjustments.

[blackadder]

I plan for my pension to last only 20 years 65-67 retirement so running out of money in my 80s. Enjoying life before dementia or the body fails.

[Traumahawk]

Great video, very simple to understand. One thing you haven’t mentioned is the State Pension kicking in as that is a certainty & will influence your drawdown

[DixieDaydreamer]

Different pot types, I'm old enough to have some a small DB pension which covers about 15% of my pension savings, the rest is in SIPPS and stakeholder pensions! I hired an IFA and let them sift through it all, they have the knowledge and the tools to make proper predictions and advise adjustments along the way. Best thing I've done with my retirement planning as it's taken a lot of the stress and worry away.

[extrashot]

You're the first person who's been able to explain this clearly to me... thank you. Love your content. 👍

[alanhaynes]

I had a small pension pot from my first full time job back in 1998. I was putting the minimum in every week, and so was my employer and I think there was around £3200 in there when I left. I since moved address a couple of times and been paying into other pensions and this one was forgotten. They tracked me down last year and sent through an annual statement and my balance is now £60k. Its basically been averaging around 16% a year since I stopped paying into it in 2002. The next 20 years could be interesting

[andyfulton]

Chris, your videos remind me of a time long ago when i just had to watch the magic roundabout before i went to bed. I've learnt so much and i'm really looking forward to taking control of my pension pot in a few years' time, that's not something i thought i'd hear myself say. Fantastic job!!

[chqshaitan]

excellent video chris, loved the way you went through the various scenarios.

[ramalufc]

Very useful, thank you. I think including the state pension would have been beneficial for most and provided an increased level of withdrawals (which would provide a less pessimistic future 🙂).

[rabihah]

Great video. I believe the 4% rule applies to total withdrawals which should include charges. So this is in line with the 1% charges applied and 3% safe withdrawals. Also the use of Monte Carlo simulation is maybe an overly pessimistic model. Fund returns based on historical data icould be more suitable.

[darrenfox]

Making the complex sound straight forward is an art form! I found this really insightful and have a decent grasp of the topic. Subscribed!

[simon]

Thank you for providing such clear explanations. There is a dearth of practical strategies to manage sustainable withdrawals. I shall take your advice!

[Silvermachine]

I Have to say Chris, I have just come across your channel and your presentations are excellent, the best I have found. You explain everything in such as easily absorbed manor. I am 65 and should start to receive my full state pension from the middle of next year, I say should as nothing is off the table with our current government!

I currently have a SIPP. I hadn't really considered an annuity but I recently checked what I could receive from various companies via an online calculator and was pleasantly surprised. I am seriously now thinking of taking one. My thoughts are to use two thirds of the value of my SIPP for an annuity and keep one third still available to invest, just so I can still retain some control. As world finances are in such a mess with the potential for a lot of volatility, my thoughts are to get a good chunk of my SIPP into a safe haven and hopefully take advantage of the volatility with the rest.

[markramsay]

Watched more. Thanks again for this really interesting resource. So I am 53. I own and run my own business, and as stressful as it is from time to time, more often than not it feels like a hobby. Good job too, but I am quite shocked (but educate !) about these returns. By 63 I will have at least £500K in the pot, but looks like I will be supplementing that with work for the foreseeable future after 65! (Health - fingers crossed). Mark.

[MrBren]

Great video Chris, that makes the whole picture much clearer now. Invaluable information. Many thanks 👍

[johnbarrett]

Only just come across these videos.... brilliant...