Managing Your Money 

36-year-old aims for £40,000 income at age 55

Reader Portfolio

Anonymous, 36


Sipp and Isa


Retirement income of £40,000 at age 55

A 36-year-old IC reader, who wishes to remain anonymous, wants to retire at age 55 on £40,000 a year. He has been investing for 10 years and has built up a portfolio worth just over £150,000 held in a self-invested personal pension (Sipp) and individual savings account (Isa).

He says: "I have a moderate to high attitude to risk, although the credit crunch has lowered this somewhat. I am now more concerned with managing risk through a diversified portfolio. As a result, I am buying more property and bond funds to diversify what was a fairly high risk portfolio of equity funds.

"I am aiming for a portfolio that is half passive and half active and achieves a balance of asset classes and uncorrelated assets. I want to reduce my overall fees to less than 0.5 per cent, hence the high weighting to index funds."

In addition to the Sipp and Isa, he has a separate 'rainy day' cash savings and a small mortgage on his home. He is able to top up his Sipp with £10,000 a year and the Isa by £5,000 a year.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now