As an accountant I get asked a lot about how long a persons pension pot will last or when I think they can retire. The honest answer is it depends ! What your current outgoings are , do you have debt , what age you are etc etc.
I prepared this simple Excel model to help people understand what to expect. In this section of the model enter your details, you may be intitled to both an Irish and a UK state pesnion I have estimated the values on the model. Your date of birth and your last pension statement date and pension pot value.
From your intended retirement date the model will stop adding AVC’s and your employers / employee deductions from your pay. You enter the monthly amount you would like at retirement and if you have any other source of income ( for example rental income or casual work).
From this sample model you intend to retire at 63. If you are below 66 you will be able to claim unemployment benefit for 9 months and get a tax refund (Provided you have paid enough tax in the year to date). A good time to retire is April assuming you have paid tax from Jan to April and you are retiring into the summer , much better than starting retirement into the winter months.
On the model it treats your total pension pot, your unemployment benefit / tax refund and other income as part of your total wealth and deducts the monthly draw from that number.
In this model “Jack” will run out of money when he is 84 , you will see the balance carried forward going negative
The model doesn’t take account of NPV calculations but it may allow you to see in today’s market with certain assumptions. Any issues with the model drop me an email.
Link to the Excel Model –http://anythingaccess.com/wp-content/uploads/2024/11/PensionPlanner_Sample.xlsx
Really you should talk to PJ in Aylward Financial Services who has given me advice over the years
