- These investors want to increase the value of their pension withdrawals by 4 per cent a year
- This may not be sustainable, but they may not need to draw that much
- They should consider better diversifying their non equity investments
Sipps invested in funds and bonds, cash, residential property.
Maintain current lifestyle and avoid relying on children in old age, withdraw 3.75 per cent of value of Sipp then increase value of withdrawals by 4 per cent every year, move to a house that's easier to live in, pass on home to children
Fabian and his wife are ages 65 and 64. He stopped working full-time in 2007 and fully retired in 2010. He and his wife have two financially independent adult children and one grandchild. Their home is worth about £1.5m and mortgage-free.