Personal Finance Report: Retirement Planning for Alastair and Wendy

This report, prepared for Alastair and Wendy Windsor, focuses on their retirement planning, outlining their financial objectives, both short-term and long-term, and proposing strategies to achieve them. It analyzes their pension schemes, including the impact of UK pension reforms introduced in 2014/15, and considers the implications of taxation on their income and wealth. The report details the couple's income projections, savings plans, and investment options, while also addressing the financial responsibilities they have towards their dependents and the potential impact of inheritance tax. It provides a comprehensive financial assessment, offering recommendations to ensure a secure financial future for Alastair and Wendy, considering various scenarios and key assumptions related to their retirement age and income sources. The report also analyzes Wendy's pension contributions and the couple's overall tax liabilities, providing a complete financial overview.

Running head: PERSONAL FINANCE
Personal Finance
Name of the Student:
Name of the University:
Authors Note:

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Contents
Introduction:....................................................................................................................................2
Part A:..............................................................................................................................................2
Part B:..............................................................................................................................................6
Part C:..............................................................................................................................................8
Part D:............................................................................................................................................10
Part E:............................................................................................................................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14

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Introduction:
As a consultant firm we are obliged to provide our clients with best possible suggestions
to help them to achieve their financial objectives. In this documents we shall help Alastair and
Wendy Windsor of North East England to plan their retirement in a manner suitable to their
financial requirements in the future. Once retired the primary source of income of a person is his
or her pension. It is important to plan the retirement effectively to ensure that the pensions to be
received in the future shall be enough to meet the future expenses and other needs of the elderly
people. The detailed discussion and the suggestive course of action for Alastair and Wendy
outlined below.
Part A:
Financial objectives of Alastair and Wendy in the short and long run:
Financial objectives of clients are dependent on number of things including their age, financial
needs, income, quality of life in the future and others. The financial objectives are mainly of two
categories, firstly short term objectives and secondly long term objectives. Alastair and Wendy
aged 56 years and 49 years respectively are elderly couple looking to secure their future.
Short term objectives:
In the short run the objective of the couple is to ensure that the pension income of theirs will be
sufficient to meet their family expenditures. The pensions that would be received after paying
necessary taxes shall be enough to meet the family expenditures of the couple subsequent to their
retirement is the main short term objective.
Medium term objective:

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Covering the University fees of one of the dependents of the couple along with saving for the
America trip are part of medium term objectives of the couple. In order to achieve the medium
term objectives the funds must be invested in profitable investment options.
Long term objectives:
The primary financial objective of the both is to invest in stable sources to secure their future.
The dependents are Harry and Holly as Alastair and Wendy do not have any children from their
marriage (Ellison, 2011). In addition to meeting the short term objectives ensuring that the part
of net income of the couple subsequent to the retirement shall gone towards securing their future
is also to be noted.
The financial objectives of Alastair and Wendy thus, include that the income in the future should
be enough to meet their budgeted expenditures as well as to make savings for their future.
Meeting the family expenditures and providing for their dependants in case anything happens to
Alastair and Wendy is the main financial objective of the couple (Farrar, Moizer & Hyde, 2012).
Plans to achieve the objectives of the couple:
Pensions are received by both Alastair and Wendy from their respective employers in the form of
lump sum and annuity. In addition to the current employment income and pension both have also
inherited properties from their ancestors. Both their income and wealth are increased due to these
inherited properties from their grandparents.
From the facts it is clear that the main source of income to the couple is the respective income
from different pension schemes. With both having two or more pension schemes to earn income
in the future in the form of annuity and in lump sum. However, the amount of lump sum payment

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from the pension schemes are dependent on number of things such as the age in which they will
decide to retire and the level of the schemes (FRASSI, GNECCO, PAMMOLLI & WEN, 2018).
The couple have the desire to retire at the age of 60 whereas the standard age to release pension
is 67 thus, numerous calculations are provided to assess the options available to the couple in
case they decide to retire at different times. Ensuring that the couple make optimum use of their
income is the main objective. This will enable them to make provision for the future expenses as
well as make necessary savings for their future (Hinz, 2011).
The graph below shows the projected employment income under different scenarios.
0
50,000
100,000
Employment Income Projection Scenario's
15-16; L 56 D 49 16-17; L 57 D 50
17-18; L 58 D 51 18-19; L 59 D 52
19-20; L 60 D 53 20-21; L 61 D 54
21-22; L 62 D 55 22-23; L 63 D 56
23-24; L 64 D 57 24-25; L 65 D 58
25-26; L 66 D 59 26-27; L 67 D 60
27-28; L 68 D 61 28-29; L 69 D 62
29-30; L 70 D 63 30-31; L 71 D 64
31-32; L 72 D 65 32-33; L 73 D 66
33-34; L 74 D 67 34-35; L 75 D 68
35-36; L 76 D 69 36-37; L 77 D 70
Age
G B P
Taking into consideration all the expenses of the couple the monthly expenses adds up to £4,310.
The lump sum and annuity to be received by the couple would vary significantly depending on
the time of retirement of the couple hence, it is important to consider each and every aspect of
retirement (INTERNATIONAL SURVEY OF FAMILY LAW, 2011). Though the couple also have
income from their wealth and inherited property but the primary source of income is the income
from pension schemes. It is important to consider the implications of taxation on the wealth,

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property and overall income of the couple. After deducting all necessary taxes on income and
applicable taxes on wealth the available income should be sufficient to meet the monthly
expenditures of the family in addition to make necessary savings for the future. It is important to
note that the income of the couple in the future should not only be sufficient to meet their
expenditures but they have dependents including the parents of Alastair who are at the advanced
age and are sickly. Thus medical bills for his parents are also quite significant. Ensuring the
future incomes of the couple is sufficient to meet all these expenditures and provide for the
security of the couple is the primary financial objective of the couple (Kira & Eijnatten, 2011).
Apart from the above financing the University fees of Holly and to make provision for the
American trip will be fulfilled by investing certain percentage of total funds in lucrative
investment options such as Real Estate Investments Trusts and other such lucrative but less risky
investment options.
The projection of income and net savings is very crucial to the financial objectives of the couple
the graph below shows the income and net saving projections to help the couple understand the
impact of different alternatives (Lomax, 2012).

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15-16; L 56 D 49
17-18; L 58 D 51
19-20; L 60 D 53
21-22; L 62 D 55
23-24; L 64 D 57
25-26; L 66 D 59
27-28; L 68 D 61
29-30; L 70 D 63
31-32; L 72 D 65
33-34; L 74 D 67
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Income & Net Savings Projections
Alastair Pension Income
Alastair Employment Income
Wendy Employment Income
Wendy Pension Income
Net Annual Savings
Age
GBP
From the above graph the income and net savings projections can be understood clearly.
Key assumptions to the above part are outlined below:
I. Alastair wants to retire at an early age and if possible even now.
II. The company in which Alastair works however pays pension at the age of 60 years.
III. The couple would be responsible to take care of Alastair’s parents.
IV. Harry and Holly both are dependents on the couple and the couple wants to provide
equally for both of them.
V. No will has been made to plan the estate of the couple yet.
VI. It has been assumed that salaries of Alastair and Wendy have increased.
VII. New reforms of pension schemes have been availed by the couple.
VIII. Inheritance tax shall be paid at 40% (Marotta, 2011).

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Part B:
Reforms introduced in pension related provisions in the UK during the fiscal year 2014/15 have
significant impact on the quantum of income in the future. The new reforms shall help the couple
to take advantage to enhance their pensionable income. Since the primary source of income to
the couple is pension hence, maximizing their pension income is the main objective as this will
enable them to meet their family expenditures and make savings at the same time for the future.
Finalizing the most beneficial pension scheme will enable the couple to earn maximum amount
of income in the future to make provision for their future. The beneficial provisions introduced in
the reforms shall be used properly to extract maximum benefits out of the pension schemes to
achieve the financial objectives of the couple in the future (Novella & Olivera, 2014).
Since the reforms introduced in 2014/15 has reduced the applicable taxes on pension income and
allowed the pensioners to cash their lump sum dues with reduced tax liability it is important for
the couple to use these reforms effectively to increase their income from pension schemes. In
contrast to the earlier provision of allowing 25% lump sum payment of pension funds now the
pensioners have the option to take number of small lump sums thus, pensioners can decide
whether to take small lump sums or take lump sum amount of pension at one go. People
investing in pension schemes if aged 55 years or above will have the option to take small lump
sums from pension funds according to his or her needs (Rutledge, Wu & Vitagliano, 2014).
With this reform Alastair aged 56 years can straight away start receiving pension income if he
desires to retire now instead of waiting for 60 years of age. Thus, by using the reform he does not
have to wait to be 60 to 67 years old to avail the benefits of pension. Also the 40% tax on lump
sum payment received from pension schemes need not be paid under the new reforms hence,
Alastair will be able to reduce his tax liability and start receiving pension from now. The new

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pension policy suits Alastair as the overall cost of accessing pension funds and tax liability
towards pension fund will reduce significantly. Alastair will also be benefitted with the scheme
of transferring final salary to the pension scheme. This would increase the pension income
significantly. There are number of other benefits including transferring to defined contribution
scheme from current defined benefit scheme (Selin, 2016).
Workings:
Alastair’s pension:
A TV company in the North East has paid first pension to Alastair with defined benefit pension
scheme with full pension is due in 2022 with the scheme is for a period of 19 years. Alastair will
receive an annual pension of £17,470 annually and three times tax free lump sum payment will
be received by him. The total lump sum payment will be (17470 x 3) = £52,410.
Second pension is from National Health Service where the annual salary is £26,500 with the
provision of annual pension of £5,160 to be received once Alastair attains the age of 60 years
thus, will be payable from 2022. Alastair has also taken a life insurance cover of £49,500.
Wendy shall receive the cover as surviving person in case Alastair passes away (Schouten &
Robinson, 2012). Accordingly, total pension income due to Alastair is calculated in the table
below:
Pensions Amount (£)
Lump sum due (52410 + 15480) 67890.00
Annual income from pension (17470 + 5160) 22630.00

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Total pension income 90520.00
Note:
I. The lump sum payment of payment is taxable ta the rate of 40%.
II. With taxation pension income is 20%.
Wendy’s pension:
Wendy has taught 8 years in private sector and 8 years Further Education with 4 years from
Higher Education. Contribution to pension fund was 10.2% of £ 49000, i.e. £ 4998. In addition
entitled pension of £ 4500 and £ 11700 as lump sum.
Total pension of Wendy’s will be £6,568 (Wang, 2018).
Part C:
Taxation matters and issues affecting the couple:
The net earnings of the couple will be dependent to a large extent on the taxation provisions
applicable to their incomes. Thus, it is important to consider the effects of taxation on the net
income of the couple. Though the primary sources of income of the couple is pension income
however, there are other incomes such as income from property and wealth. Impact of taxation
provisions on these income would determine the net income in the hands of the couple.
Especially considering the inheritance of property and wealth the impact of capital gain tax shall
be ascertained to determine actual impact on the net income of the couple. The capital gain tax
on the apartment Wendy has decide to sale will have to be calculated to determine the impact of

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the same on the net income of the couple. Rate of capital gain tax on capital gain arising from
sale of residential properties is 28% in 2018 however, the rate reduced to 18 for sale of properties
inherited from deceased persons (Natali, 2009).
In case of property inherited the Govt. imposes certain percentage of tax on such inheritance,
known as inheritance tax. Inheritance tax has to be paid by the inheritor subsequent to the
transfer of the property to the inheritor. Applicable rate of inheritance tax in UK is 40% in 2018.
A similar percentage of tax shall be imposed on inheritance income received by the couple in
2018. Estate planning is one of the most effective ways to deal with tax related matters thus, one
should make an effective estate plan to minimize tax liability on such properties. The parents and
grandparents of Alastair and Wendy have done that however, no such planning has been made
the couple who believe that their properties and wealth shall be transferred to Harry and Holly
(Kira & van Eijnatten, 2012).
Considering the advanced stage of Alastair’s parents and their sickly health the couple need
health cover for Alastair’s parents and insurance cover for themselves. The health cover would
protect the couple from expensive medical bills for different types of diseases including cancer.
Thus, using health cover for Alastair’s parents and insurance cover for the couple would help
them to reduce the burden on the future income of the couple (Kira & Eijnatten, 2011).
Workings:
Capital gain tax:
Particulars Amount (£) Amount (£)

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Sale price 190000
Less: Purchase consideration 69000
Capital gain 121000
Capital gain tax @28% 33880
Net amount received (190000 – 33880) 156120
Inheritance tax @40% on £ 14000 is £ 5600 on the property inherited.
Inheritance tax on furniture inherited by Wendy from her grandmother (£ 15000 x 40%) = £6000
Part D:
Suitable investment portfolio for the couple:
Though the couple have moderate attitude towards risk and accepts certain amount of risk while
making investment in different investment options however, considering their age and
requirements the investment options shall be selected in such a way to ensure that the risk of
losing hard earn money by the couple is nil. Ensuring stable flow of income with minimum
amount of risk in investment portfolio is the main point to be kept in mind in selecting suitable
investment portfolio for the couple (Hinz, 2011).
Investment in Government bonds, investment in mutual funds are two of the most suitable
investment options considering the requirements and objectives of the couple. These are also
long term investment options that give stable return to the investors over a long period time with

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almost zero risk of losing money. Further treasury bills and treasury bonds are also safe and
secure option for investment to the couple. In addition if the coupe wants to venture into real
estate business with long term objective then it can also invest in Real Estate Investment Trusts
(REIT) (Gronchi & Nisticò, 2012).
Value of investments keeping in mind the requirements of the couple is depicted below in
graphical form.
15-16; L 56 D 49
16-17; L 57 D 50
17-18; L 58 D 51
18-19; L 59 D 52
19-20; L 60 D 53
20-21; L 61 D 54
21-22; L 62 D 55
22-23; L 63 D 56
23-24; L 64 D 57
24-25; L 65 D 58
25-26; L 66 D 59
26-27; L 67 D 60
27-28; L 68 D 61
28-29; L 69 D 62
29-30; L 70 D 63
30-31; L 71 D 64
31-32; L 72 D 65
32-33; L 73 D 66
33-34; L 74 D 67
34-35; L 75 D 68
35-36; L 76 D 69
36-37; L 77 D 70
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Value Of Investments
Age
GBP
The above graph has been prepared keeping in the mind the age of Alastair and Wend.
The net income projection with different age of the couple is shown below in the calculation. For
better understanding the excel spread sheet shall be followed.

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Income & Net Savings Proje ctions
Year Number 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34
Alastair - Age 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74
Wendy - Age 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
15-16; L 56 D 4916-17; L 57 D 5017-18; L 58 D 5118-19; L 59 D 5219-20; L 60 D 5320-21; L 61 D 5421-22; L 62 D 5522-23; L 63 D 5623-24; L 64 D 5724-25; L 65 D 5825-26; L 66 D 5926-27; L 67 D 6027-28; L 68 D 6128-29; L 69 D 6229-30; L 70 D 6330-31; L 71 D 6431-32; L 72 D 6532-33; L 73 D 6633-34; L 74 D 67
Alastair Employment Income 26,500 26,500 26,500 26,500 26,500 26,500 26,500 0
Wendy Employment Income 49,000 49,000 49,000 49,000 49,000 49,000 49,000 49,000 49,000 49,000 49,000 49,000
Alastair Pension Income 0 0 0 0 0 0 5,160 5,160 5,160 5,160 5,160 5,160 5,160 5,160 5,160 5,160 5,160 5,160 5,160
Wendy Pension Income 0 0 0 0 0 0 0 0 0 0 0 4,998 4,998 4,998 4,998 4,998 4,998 4,998 4,998
T otal Gross Income 75,500 75,500 75,500 75,500 75,500 75,500 80,660 54,160 54,160 54,160 54,160 59,158 10,158 10,158 10,158 10,158 10,158 10,158 10,158
Net Annual Savings 0 3,868 4,172 4,488 5,084 5,461 8,170 3,974 17,076 17,848 22,075 23,010 23,979 24,984 2,755 2,319 1,858 1,370 29,409
Two recommended investment portfolio for the couple are given in the underlying table.
Portfolio A Portfolio B
Government Bonds Treasury Bonds
Real Estate Investment Trusts (REITs) Equity shares
Treasury Bills Government bonds
Actual investment portfolio:
Income & Net Savings Projections
Year Number 15-16 16-17 17-18 18-19
Alastair - Age 56 57 58 59
Wendy - Age 49 50 51 52
15-16; L
56 D 49
16-17; L
57 D 50
17-18; L
58 D 51
18-19; L
59 D 52
Value Of Investments 122,672 126,540 130,711 135,199

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Income & Net Savings Projections
Year Number 19-20 20-21 21-22 22-23 23-24
Alastair - Age 60 61 62 63 64
Wendy - Age 53 54 55 56 57
19-20; L
60 D 53
20-21; L
61 D 54
21-22; L
62 D 55
22-23; L
63 D 56
23-24; L
64 D 57
Value Of Investments 150,283 155,744 163,914 223,856 240,933
Income & Net Savings
Projections
Year Number 24-25 25-26 26-27 27-28 28-29
Alastair - Age 65 66 67 68 69
Wendy - Age 58 59 60 61 62
24-25; L
65 D 58
25-26; L
66 D 59
26-27; L
67 D 60
27-28; L
68 D 61
28-29; L
69 D 62
Value Of Investments 258,781 395,054 418,064 442,043 467,027

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Income & Net Savings Projections
Year Number 29-30 30-31 31-32 32-33
Alastair - Age 70 71 72 73
Wendy - Age 63 64 65 66
29-30; L
70 D 63
30-31; L
71 D 64
31-32; L
72 D 65
32-33; L
73 D 66
Value Of Investments 530,223 532,543 534,401 535,770
Income & Net Savings Projections
Year Number 33-34 34-35 35-36 36-37
Alastair - Age 74 75 76 77
Wendy - Age 67 68 69 70
33-34; L
74 D 67
34-35; L
75 D 68
35-36; L
76 D 69
36-37; L
77 D 70
Value Of Investments 1,517,085 1,547,886 1,579,052 1,628,217

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Considering that the importance of security of money of the couple and the objectives of the
couple the above portfolio recommendations have been made. In both the above portfolios the
majority of investment shall be made in low to zero risk investment options such as Government
and Treasury bonds. Balance can be invested in REITs and equity shares as the case may be
depending on the situation.
Part E:
Mortgage advice to Harry:
Only son of Alastair, Harry lives with his mother but looking to move out from his mother house
and thus looking to purchase a property locally. Harry has invested for the same over a long
period of time however, he is still to finalize any deal for buying a house as he has lack of
knowledge in the field of property buying and selling. Harry has at present saved up to £6000
with the contribution and help from his parents and grandparents. With annual salary of Harry
stands at £24,000 and the savings of £6,000 he needs to get into a plan to buy a home locally that
will allow him pay off monthly instalments. The annual salary of £24,000 means the monthly
income of Harry is £2,000 only and out of which only £667 per month can be used towards home
ownership plan (Atalay & Zhu, 2018).
At present Harry has £6,000 as savings thus, he should keep on saving for another 18 months i.e.
£667 per month for 18 months. At the end of 18 months his total savings would stand at £6000 +
(£667 x 18) = £18006. Thus, at the end of 18 months he will be in a position to pay £18000 as
deposit for a house which may have a value of £90,000. The rest £72,000 can be paid in monthly
instalments of £540 over the required period of time. This is the best mortgage option for Harry
with his existing savings and annual salary (Farrar, Moizer & Hyde, 2012).

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Workings:
Mortgage calculation:
Particulars Amount (£)
Estimated value of the property 90000.00
Expected deposit @20% 18000.00
Estimated mortgage loan rate over 20 years
duration
4%
Total Interest (90000 – 18000) x 4% x 25 57600.00
Total due (72000 + 57600) 129600.00
Number of months 240.00
Per month EMI 540.00
Recommendation:
Creation of will is essential to ensure smooth transition of properties of the couple to their
children, namely Harry and Holly without any complication. The wealth shall be equally
distributed between the two subsequent to the departure of the couple. This will ensure smooth
transfer of properties between the two without any legal issues. Thus, the will shall be prepared
by Alastair and Wendy immediately.

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Conclusion:
From the above discussion we can safely comment on the probability of Alastair and
Wendy to achieve their financial objectives of meeting their budgeted expenditures and securing
their future. It is important to remember though that the Govt. continuously brings new
amendments in respect of taxation matters as well as pension schemes. It is important to keep
knowledge about such amendments to use the beneficial laws and provisions to extract
maximum financial leverage out of pension schemes and taxation matters affecting income tax
wealth tax and inheritance tax.

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References:
Atalay, K., & Zhu, R. (2018). The effect of a wife’s retirement on her husband’s mental
health. Applied Economics, 50(43), 4606-4616. doi: 10.1080/00036846.2018.1458198
Ellison, R. (2011). The role of the state in pensions. Pensions: An International Journal, 16(2),
67-68. doi: 10.1057/pm.2011.8
Farrar, S., Moizer, J., & Hyde, M. (2012). The value of incentives to defer the UK state
pension. Pensions: An International Journal, 17(1), 46-62. doi: 10.1057/pm.2012.2
FRASSI, B., GNECCO, G., PAMMOLLI, F., & WEN, X. (2018). Intragenerational
redistribution in a funded pension system. Journal Of Pension Economics And
Finance, 18(2), 271-303. doi: 10.1017/s147474721700049x
Gronchi, S., & Nisticò, S. (2012). The Sustainable Rate of Return of Defined-Contribution
Pension Schemes. SSRN Electronic Journal, 2(5), 13-25. doi: 10.2139/ssrn.2200780
Hinz, R. (2011). The World Bank’s Pension Policy Framework and the Dutch Pension System:
A Paradigm for the Multi-Pillar Design?. SSRN Electronic Journal, 2(3), 13-18. doi:
10.2139/ssrn.1865754
JORDAN Publishing. (2011). INTERNATIONAL SURVEY OF FAMILY LAW (4th ed., pp. 13-
37). LONDON.
Kira, M., & Eijnatten, F. (2011). Socially Sustainable Work Organizations: Conceptual
Contributions and Worldviews. Systems Research And Behavioral Science, 28(4), 418-421.
doi: 10.1002/sres.1083

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Kira, M., & van Eijnatten, F. (2012). Socially Sustainable Work Organisations: A
Debate. Systems Research And Behavioral Science, 30(4), 506-509. doi: 10.1002/sres.2164
Lomax, A. (2012). An inconvenient truth: Pensions in the UK have priority ranking. Pensions:
An International Journal, 17(1), 4-7. doi: 10.1057/pm.2012.1
Marotta, G. (2011). Are Defined Contribution Pension Schemes Socially Sustainable? A
Conceptual Map from a Macroprudential Perspective. SSRN Electronic Journal, 2(3), 147.
doi: 10.2139/ssrn.1941269
Natali, D. (2009). Public/Private Mix in Pensions in Europe: The Role of State, Market and
Social Partners in Supplementary Pensions. SSRN Electronic Journal, 2(5), 17-36. doi:
10.2139/ssrn.2264152
Novella, R., & Olivera, J. (2014). Mental Retirement and Non-Contributory Pensions for the
Elderly Poor in Peru. SSRN Electronic Journal, 2(4), 17-28. doi: 10.2139/ssrn.2397665
Rutledge, M., Wu, A., & Vitagliano, F. (2014). Do Tax Incentives Increase 401(K) Retirement
Saving? Evidence from the Adoption of Catch-Up Contributions. SSRN Electronic
Journal, 6(8), 12-24. doi: 10.2139/ssrn.2530026
Selin, H. (2016). What happens to the husband’s retirement decision when the wife’s retirement
incentives change?. International Tax And Public Finance, 24(3), 432-458. doi:
10.1007/s10797-016-9427-y
Wang, Y. (2018). Book Review: The SAGE Encyclopedia of Corporate Reputation. Corporate
Reputation Review, 21(3), 137-138. doi: 10.1057/s41299-018-0050-y

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Schouten, E., & Robinson, T. (2012). Defined ambition pensions – Have the Dutch found the
golden mean for retirement savings?. Pensions: An International Journal, 17(4), 334-341.
doi: 10.1057/pm.2012.37

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Appendix:
Retirement cash flow planner is given below in the tabular format.

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Age Calendar
Year
Retirement
year
Investment
value at
start of year
Change in
investment
value by
end of year
Rate of
return on
investments
Routine
deposit or
withdrawal
Special
deposit or
withdrawal
Investment
value at end
of year
Cumulative
performanc
e
Annual
withdrawal
percentage
65 2027 1 £ 100,000 £
5,220 5.22% £
(10,000)
£
95,220 5.22% -10.00%
66 2028 2 £ 95,220 £
4,970 5.22% £
(10,225)
£
89,965 5.22% -10.70%
67 2029 3 £
89,965
£
4,696 5.22% £
(10,455)
£
84,207 5.22% -11.60%
68 2030 4 £
84,207
£
4,396 5.22% £
(10,690)
£
77,912 5.22% -12.70%
69 2031 5 £
77,912
£
4,067 5.22% £
(10,931)
£
71,048 5.22% -14.00%
70 2032 6 £
71,048
£
3,709 5.22% £
(11,177)
£
63,580 5.22% -15.70%
71 2033 7 £
63,580
£
3,319 5.22% £
(11,428)
£
55,471 5.22% -18.00%
72 2034 8 £
55,471
£
2,896 5.22% £
(11,685)
£
46,681 5.22% -21.10%
73 2035 9 £
46,681
£
2,437 5.22% £
(11,948)
£
37,169 5.22% -25.60%
74 2036 10 £
37,169
£
1,940 5.22% £
(12,217)
£
26,892 5.22% -32.90%
75 2037 11 £
26,892
£
1,404 5.22% £
(12,492)
£
15,804 5.22% -46.50%
76 2038 12 £
15,804
£
825 5.22% £
(12,773)
£
3,856 5.22% -80.80%
77 2039 13 £
3,856
£
201 5.22% £
(13,060)
£
(9,003) 5.22% -338.70%
78 2040 14 £
(9,003)
£
(470) 5.22% £
(13,354)
£
(22,828) 5.22% 148.30%
79 2041 15 £
(22,828)
£
(1,192) 5.22% £
(13,655)
£
(37,674) 5.22% 59.80%
80 2042 16 £
(37,674)
£
(1,967) 5.22% £
(13,962)
£
(53,603) 5.22% 37.10%
81 2043 17 £
(53,603)
£
(2,798) 5.22% £
(14,276)
£
(70,677) 5.22% 26.60%
82 2044 18 £
(70,677)
£
(3,689) 5.22% £
(14,597)
£
(88,964) 5.22% 20.70%
83 2045 19 £
(88,964)
£
(4,644) 5.22% £
(14,926)
£
(108,534) 5.22% 16.80%
84 2046 20 £
(108,534)
£
(5,665) 5.22% £
(15,262)
£
(129,461) 5.22% 14.10%
85 2047 21 £
(129,461)
£
(6,758) 5.22% £
(15,605)
£
(151,824) 5.22% 12.10%
86 2048 22 £
(151,824)
£
(7,925) 5.22% £
(15,956)
£
(175,705) 5.22% 10.50%
87 2049 23 £
(175,705)
£
(9,172) 5.22% £
(16,315)
£
(201,192) 5.22% 9.30%
88 2050 24 £
(201,192)
£
(10,502) 5.22% £
(16,682)
£
(228,377) 5.22% 8.30%
89 2051 25 £
(228,377)
£
(11,921) 5.22% £
(17,058)
£
(257,356) 5.22% 7.50%
90 2052 26 £
(257,356)
£
(13,434) 5.22% £
(17,441)
£
(288,231) 5.22% 6.80%
91 2053 27 £
(288,231)
£
(15,046) 5.22% £
(17,834)
£
(321,111) 5.22% 6.20%
92 2054 28 £
(321,111)
£
(16,762) 5.22% £
(18,235)
£
(356,108) 5.22% 5.70%

24
PERSONAL FINANCE