I'm currently shoving around £300 a month into my SIPP, and am just wondering how much this is going to yield me in the future...
There's a lot of variables, but let's assume a 5% return, which is a decent conservative estimate....
£40K after 8 years...
(well, near enough)...
The compound calculator shows in dollars, but it's £££s for me, and it's nice to know hat with even only 8 years, by the time I am 60 just a meagre £300 a month would be £40K, near enough....
NB that £300 a month includes the sweet little tax rebate one gets for SIPPING...
Options...
Well at 60 years of age I then have the option of...
- Keeping on stacking
- Assuming a 5% return I could take out £2K a year and maintain the capital.
- Drawdown around £6K a year and simply burn the lot in a bridge to my pain state pension...
TBH option three doesn't sound that appealing - £6K with nothing left after 8 years sounds like a very bad move compared to option 2, a little £2K sweetner a year and all the capital left.
Now Obvs that capital amount will be value-eroded with inflation, but option 2 is still sounding like the best one...!
In short, I am favouring keeping on earning past 60 to maintain the capital.
That's no longer too onerous a prospect since work ain't so bad anymore!
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