What YouTubers get wrong about pensions

The Golden Years Myth: Rethinking Pension Forecasts Post-75
My favourite pension youtube channels are:
Ben Felix
The Plain Bagel
PensionCraft
Are your pension forecasts overshooting the runway for life after 75? This video discusses why conventional pension planning might be overcalculating your post-retirement needs and how you can adjust your savings strategy for a more accurate financial future.
🔍 *What You'll Learn:*
- *The Overestimation Issue:* How pension forecasts can misjudge the required funds after 75.
- *Lifestyle Changes:* The shift in spending habits and cost of living as we age.
- *Adjusting Your Forecast:* Tips for recalibrating your pension plan to better reflect your actual needs.
💡 *Key Takeaways:*
- Gain insights into the common misconceptions of post-75 retirement spending.
- Understand the factors that can lead to overestimation in pension forecasts.
- Learn how to tailor your pension savings to your true golden years' lifestyle.
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[@advicegap]

4% is a very rough guide, it doesn't account for tax and is more US orientated in my view. I prefer to work on 3.5% but even that isn't a target its a just a finger in the air, I wouldn't tell anyone to base their withdrawals on it.

[@ianwall9152]

Interesting video. James shack is excellent. I think 4% is a good guide but I would recommend a professional model to undertake a monti Carlo simulation.

[@Time2RetireUK]

Thanks I will look up James.

[@Mr35000000]

I agree James Shak is one of the best UK pension RUclipsrs.

[@homertrix]

Just for kicks, I did a simulation using the 4% rule on S&P500 returns since 1926 (just because I had the data available). I used the scenario of 4% drawdown of your pot at the start of retirement, growing 2.5% a year to crudely simulate typical inflation. i.e. if your pot is £1.25m at retirement, your year 1 drawdown is £50k, year 2 £51,250, year 3 £52,530, etc. Your pot grows/shrinks based upon historical returns and factors in drawdowns. Based on this data, using the 4% rule 98.9% would last 15 years, 97.6% for 20 years, 96.2% for 25 years and 95.7% for 30 years. The failures appear to be clustered around people retiring during major crashes, such as experienced in the late 1920's.

[@neddythened2698]

Why wouldn't you take DB early at a reduced rate?

[@Time2RetireUK]

I have 3 DBs and will take one of them early. Makes sense though to leave the SIPP so it continues to grow. Thanks for the idea 💡

[@homertrix]

I wonder how many of the 35 year olds talking about pensions have the luxury of define benefit pensions. They're only 20 years behind you but their retirement is going to look a lot different to yours.

[@Time2RetireUK]

DBs are great, I feel sorry for those who haven't been able to benefit from them

[@dallassukerkin6878]

:chuckles dryly: I'm sixty one and I do not have a DB pension waiting. Very few non-public-sector folk do.

[@akosiamarillo]

Me and wife are on DBs. Planning early retirement so will get a huge whack of 20-35% penalty. 😢

[@stuartburns8657]

​@@akosiamarillo1st World problem?

[@akosiamarillo]

@@stuartburns8657 not really. according to 1st world projected retirement income, we are way down. that is combined income from DB with 35% deductions. do we need to move to a developing country?

[@homertrix]

Looks like a German Shorthaired Pointer or maybe a Weimaraner.

[@Time2RetireUK]

Ohh very close with both

[@alexaskew70]

@@Time2RetireUK Vizsla? I have one.

[@RemixlivewithLoopcloud]

​@@alexaskew70 correct 🎉

[@Time2RetireUK]

Yes she is a Viszla