My Decumulation ‘Hypothesis’

I thought I’d take up Indeedably’s Sovereign Quest challenge to write about ‘Planning for Decumulation.

You can read about the challenge and other people’s decumulation stories in the above link.

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My plan to FIRE seems quite straight forward (to me).

(A) – save and invest to get to my FIRE number (although this number frequently changes)

(B) – Call time on full-time work when FIRE number reached.

That’s it in a nutshell – simples.

However, (A) is reliant on my maintaining my moderate lifestyle, avoiding changes to my earnings or to my living situation, keeping my expenses low, maintaining a decent savings rate and a good dash of luck in the stock market to get over the finish line. Most things I’m in control of, but others I am not.

(B) depends on how I will feel once I get to my goal: will I end up with OMY (one more year) syndrome or will I say ‘Bye!’ to my colleagues, give a younger person the opportunity to do my job and waltz off into the sunset?

The FIRE Sunset

Let’s assume that I pull the trigger and skip gleefully towards the FIRE sunset – sounds fabulous but so much uncertainty and conflict will be unleashed as I change my life from being a saver to a spender.

Psychologically, I know I’m going to find this change to my life very challenging (particularly with selling my investments…) but until I’m in the situation, I don’t really know exactly how I will feel.

To say that I have a decumulation ‘plan’ would be incorrect – it’s all just a big guess right now, estimates cobbled together from various spreadsheets, speculating on how much I might need, how much I might spend, what might happen in my life, how I might react in certain circumstances.

Aiming for FIRE itself is a huge leap of faith – I’ve got faith in myself to stick to my plan but who really knows if my plan is any good, that it will work!?

The ‘unknown unknowns‘ of my future – there’s no way to plan for those!

So my decumulation plan is really a WIP hypothesis and I’ll only be able to tell you anything meaningful (ie does it work?) once I’ve FIRE’d, much in the way that Michelle of FIRE and Wide has been able to report on the success of her own plan, 3 years since she FIRE’d.

Anyway, in a very broad visualisation, here’s how my decumulation will look like to me:

Simply visualised in my mind

So in simple terms:

  • My Future Fund will provide my income from when I FIRE up to age 65
  • From age 65, my income will be from my Future Fund and my DB pension
  • From age 67, my income will be from my state pension, DB pension and my Future Fund

The State Pension

Yes, unlike many other FIRE wannabes, the state pension is part of my plan. Perhaps it’s because I’m a little older than most but my plan would not be viable if I didn’t include it. One fear of mine is that it could be means tested in the future, but chances are that by the time I come to draw on it, I’ll have spent most of my Future Fund/wealth, since I do not intend to preserve my capital, so I reckon I would likely skirt under any kind of means tested threshold.

Note that this simple diagram does not account for any income I may derive from side hustles, or even <gasp> any work I may choose to undertake if I decide to pivot and become ‘semi-retired’.

The state pension and my DB pension should provide me with a minimum income floor, which is the minimum amount I think I can live on and be reasonably comfortable. Assumptions are made here that I don’t suddenly develop expensive or extravagant tastes (or costs) in my old age.

So if I were to blow my entire Future Fund by the time I come to draw the state pension, I should still have enough to cover my basic living costs, without too many frills. Caribbean cruises will be out of the window but I might be able to enjoy a nice UK weekend away or two.

Eagle-eyed readers might have noticed that I have entered the age of 100 in the illustration – that’s just the number I’ve used in my spreadsheets, not a prediction of how long I will live!

The Back Up Plan

If it all goes t*ts up pear-shaped, perhaps I should have a decent back up plan, much like TA of Monevator, who has a plan B, C and D in the event of things going wrong.

My back up Plan B is to return to work. I know, it’s a rubbish plan but it’s an option which would have to be considered. I’m likely to have a side hustle or two to churn out a bit of income so maybe it won’t come to this drastic outcome.

Back up Plan C is to find myself a rich toyboy. I jest of course…. 😉

The Nitty Gritty

I haven’t really thought about the actual details of how I will get my income. I have ISAs and two SIPPS, will I draw down on the SIPPs one at a time or at the same time? Will I take my 25% tax relief? Will I sell my investments on an annual/quarterly basis? At what point/age should I consider buying an annuity!?

I mentioned the psychology of all this already and part of the reason why I will have part of my portfolio paying dividend income is that I feel like I need to see income dropping into my account, as if I were ‘getting paid’. That might sound strange to some, but it will be a source of comfort to me (assuming here that dividends won’t get cancelled or cut too drastically….).

I think a year from actual FIRE, I will drill down to the nitty-gritty but for now, I don’t want to stress myself about it.

The Spare Time

Whilst I haven’t planned exactly what I will be doing to fill all the spare time I will suddenly have, I’m someone who already has a lot of hobbies and interests and I know I will be able to keep myself busy and entertained. Volunteering also springs to mind.

The Family

I reckon that by the time I have FIRE’d, at least one of my siblings will have done the same, or in their case, just retired early as they’re not aware of the term FIRE.

Theirs will most certainly be considered Fat FIRE – they live very different lives to me.

I won’t have to worry about having to financially support any members of my family during my decumulation – my folks retired over 25 years ago and are financially comfortable. My siblings have all done extremely well for themselves in their careers so supporting the family is not something I need to consider but it might be something others aiming for FIRE might have build into their plans.

I have no dependants so as mentioned earlier, I don’t have to consider wealth preservation, I’m planning to spend my money, although if there’s anything left of my Future Fund when I pop my clogs, it would be nice to leave a little something to nephews and nieces.

And Finally

I’d like to say that when I re-read this post in a few years’ time, since I’d be closer to my goal, I should have more clarity and certainty about my decumulation plan, but the chances are that things will still look about as clear as mud and will just result in more lines or tabs on my spreadsheet!

How go your decumulation plans?

41 thoughts on “My Decumulation ‘Hypothesis’

  1. Haha love it! “I don’t want to drill down to the details…. Because I don’t want to stress myself about it”…

    I was relying on you to go down to the details so that I don’t have to!!

  2. Looks sound and very rational.
    Would you be good enough to say a few more words about why your FIRE number “frequently changes”?

    • Cheers Al Cam.

      My FIRE number changed a few times recently when I was considering the type of retirement I think I might prefer, for example whether I could dial up the frugality and still live comfortably (FIRE number went down), when I thought about the different countries I could travel to (FIRE number went up). I’m not there yet to see clearly what sort of balance I need to achieve.

  3. I just implemented a draw down plan. I pull $5k usd from my Vanguard IRA($4,000 after withholding) and $4,000 from my taxable Personal Capital account, no withholding. That’s once a month for both. That plus $300 teacher retirement pension for my wife, and her $956 Social Security will cover us for the five years until I draw Social Security. After that we’ll only need about $30k of annual decumulation because Social Security will pay most of our expenses.

    • Thanks for sharing, Steveark.

      Our draw down plans are quite flexible in the UK (right now) but the key will be to make it as tax effective as possible – the pension I would be able to draw down on from age 55 will be taxable above a certain threshold so I would aim to stay under that threshold if possible to avoid paying any tax.

  4. Interesting post. I’m 52, married, with a grown up daughter. Ran my own business making a modest living for 25 years before selling up 5 years ago – it was very hands on and quite tying. Always been a saver, and lived pretty frugally. Plan was to work part time, supplemented by BTL income until time to draw on SIPPs and ISAs. Just a few observations from my experience:

    1. As someone whose entire life and routine had been dictated by work and having a sense of purpose, and who had found holidays/doing nothing hard, not having this was quite psychologically challenging. After the initial relief of not having to work, the law of diminishing returns set in – all those things I’d been meaning to get around to doing still didn’t get done – I just spent more time reading blogs!! Interestingly, when I dipped back into part time work (a challenge helping revive a failing business) I got myself back into a similar situation where my daily routine is shaped around work. And I enjoyed having a sense of purpose, colleagues etc, albeit I can very much pick and choose how much I do.

    2. My mother died when she was 56, my father at 94, on which basis I could have 2 very different futures, which makes planning very difficult. Having managed the finances of several older relatives, all modestly well off, lifelong savers, all of whom ended up paying for care in some form, it’s frightening to see how quickly savings disappear. Fortunately, none of them ran out of money, but stretching our modest SIPPs and ISAs, properties, and state pension for possibly another 40 odd years looks pretty daunting. How much is enough?

    3. My daughter has a DB pension, and I’m constantly telling her how lucky she is, and how she must keep contributing. I think there will be a huge societal divide between those who do, and those who don’t (and are paying towards those who do). Apposite in relation to current debates over public sector pay, where I rarely hear the value of such provision mentioned.

    4. In the old days I’d be scrabbling around at this time of year to put some spare cash into SIPPs and ISAs. Now this activity is restricted to a bit of tinkering around the edges, and possibly transferring cash from ISAs to SIPPs to defray future IHT. Again, it’s quite a psychological change not to see the value of one’s future fund increasing year on year, other than (hopefully!) by investment growth.

    5. Similarly, we’re about to embark on our first major capital acquisition since selling up – a replacement car. Again, it takes some getting my head around encashing an investment to pay for this, as opposed to it coming out of a regularly replenished cash float.

    • Hi Martin

      Thanks very much for reading and for sharing with your detailed comment.

      I think devising a routine after work will be key, although I also like the idea of days where I have no idea what I will doing when I get up in the morning and I will just do what I feel like doing (maybe at the roll of a dice or something like that!) I know I will miss the social aspect of work and need to be mindful of the sense of purpose aspect but that could be solved with volunteering perhaps.

      I have to say that I haven’t really given a though about care costs and with no children, perhaps I should at some point.

      I know I’m very fortunate to have paid into a DB pension working in the private sector – these are pretty non-existant now in this sector yet provided to all in the public sector.

      I think it’s all going to require a big mindshift, getting my head round to using up my funds and knowing that it won’t get ‘replenished’ by my employer! All the best with buying your replacement car and hope investment returns help cover some of the costs!

  5. Great stuff Weenie!

    The constructing a pay packet in retirement is a good idea. When I switched to a semi-retired seasonal working, the absence of a regular pay packet was disquieting. For a time I “created” a pay in the form of a regular transfer of dividend/rent into my current account to address that feeling.

    Eventually, the feeling went away and I reverted to a more tax efficient arrangement. Now I have to set a reminder to pay myself at all, so that my bills don’t bounce! Funny how our attitudes and approaches evolve over time. I guess it means I got more comfortable with the whole concept, but it did take a couple of years.

    • Cheers indeedably and thanks for setting the challenge in the first place!

      Interesting that you mention that it took you a couple of years to get used to the whole concept of ‘not being paid’ so I guess it won’t be something quick for me to get my head round either!

  6. Great read – and then half way through I spot my name – made me smile! Cheers.

    It’s funny, your graph is pretty much like the one I put together when working my plan out. I even went to 100 too 😉

    I actually think that simplicity is a good thing – it’s easy to get bogged down in the details but the 80/20 principle is a good one for a reason. Understand the main cash-flows & assumptions first and get those ‘right’, fill in the rest later. Works for me.

    Plan B’s are great but Plan C sounded far more entertaining for us readers at least….

    • Cheers Michelle! 🙂

      I guess great minds think alike on the graph and the age 100, just made sense to me!

      Yes, it will all need to be pretty simple, otherwise it would just be too stressful for me to manage!

      I’m sure my friends would love me to pursue plan C too, haha!

  7. Decumulation is definitely in the air at the moment.

    I’m working my way through McClung, and have been detouring on to Big ERNs site.

    Its a whole level up in terms of spreadsheet living compared to accumulation

    I’m hoping I can internalise the concepts and automate most of the nitty gritty

    Seems worth doing though, I think it could be a good return on investment

    • Hi Rhino

      I’m still at basic spreadsheet phase so not ready to tackle the deep concepts of McClung yet!

      However, it would be something to consider later on. Let us know how you get on with your decumulation plan.

  8. Pingback: Planning for Decumulation – Gentleman's Family Finances

  9. One of the great unanswered questions on retirement – how long will you be around for it and what shape will you be in?! I’ve worked on so many decumulation hypothesis that I can drive myself nuts with it – should I budget to spend more at 60-65 than 65-70? Probably yes. But what if I’m in great shape and having a second wind in my seventies? Should I therefore be more cautious? What about health? How much should I budget for that in my seventies? Or should I spend, spend, spend now and rely on the NHS, which after all, I have paid for.
    And then there’s what to leave behind? The easy answer to that is “nothing”, but I don’t want to “waste” money just because I can’t take it with me. Maybe someone else could benefit more than me when I’m in my dotage? Nah, think I’ll try and spend it…..

    • Hey Jim

      Yes, so many questions with no definitive answers!

      Agree, what to budget for health? I will most likely have to set aside ‘dental costs’, since I can’t see that getting any cheaper and it’s either buy medical insurance or again, put aside a chunk to cover for anything privately if I don’t want to rely on the NHS.

      At the moment, I’ve of the view that I would rather like to spend my money and at the same time, help others – I’ll have to see what the options are when the time comes.

  10. Hey weenie, thanks for your post. I find that it is an interesting and also very important part of the FIRE journey to plan carefully for the decumulation phase. It has to be both realistic and practical. I think it’s very wise like you to have a plan B and C as you say and hopefully it will certainly never come to you needing to work again. I would also hope means tested state pensions aren’t a thing for a long time if at all but like you say, there’s a good chance your funds would be perhaps lower if so. It may also only apply to new claims too.

    I used to think I could fire at 35 on £250,000 which would give me Bare bones FI at 4%. For myself now, this was naive at best. I have state and DB pensions at perhaps 68 :O that would be my insurance policy of being poor and destitute in old age if things didn’t go to plan. That certainly helps me sleep better at night and I think if I only had my FI portfolio on it’s own without any backup, I would feel much more uncomfortable especially if there was no large buffer monthly so I could spend less in down turns…(less holidays, and less trips to Wetherspoons in a bear period! is an intrinsic part of my contingency plans).

    TFJ

    • Hi TFIJ/Chris

      I have a feeling that the decumulation plan I have upon FIREing will be different from the one I will have a year or so down the line when I’ve ‘lived’ through the decumulation phase, but let’s hope there’s not too much deviation!

      Redundancy in 2016 had me changing both my investment and decumulation plans but with some years to go yet, I may still make further changes, I don’t know what yet.

      Without my DB pension, my plan would probably be less certain, but I would have hoped that instead, I would have had a much larger DC pension(s) to play around with and I’d have to mess about with SWRs and such like.

  11. HI there Weenie,

    good post and it’s broadly similar with my own plans except I’ve got a provision now for early retirement that you haven’t quite put that way.
    It’s funny that I always discounted the state pension until I read a post of your’s a while back and then I realised that saying you don’t count on it is just being a bit to pious, a bit frugalier than thou.
    So I’ve put that in my own numbers and it makes you realise that once you are above destitution and deprivation, a lot of this is just psychological – and in response to your “saver not a spender”, I reckon that they are not antonyms and just very different things altogether. The frugal mindset will stretch the state pension, two SIPPS and ISAs out indefinitely and so many lottery winners end up bankrupt.

    • Cheers GFF.

      Glad I was able to help with your consideration of the state pension in your plans (albeit much further down the line).

      Certainly, it seemed like a real relief to me when I was looking at my own numbers, that I would not be living in poverty with the SP on top of my own savings/pensions and that it made sense to include it in my numbers.

      True, I don’t think I will change my mindset so much that I would suddenly turn into a frivolous spender and blow my SIPPs/ISA unnecessarily – it’s the other currently unknown costs which I’d need to account for.

  12. I’ve been 20+ years in the ‘planning’ for FIRE and with the time getting increasingly nearer i still don’t have a clear picture of how i visualise this dastardly decumulation. I’ve read and studied as much as i could, but the combination of having an indecisive mind and a Government that continues to meddle and throw curve balls has me still contemplating the numerous rough plan outlines.

    Having a DB (as long as the provider remains solvent and value eroding inflation isn’t rampant for too long) is a great reassurance for me, and the thought of transferring has never been a consideration. Time will tell if there are any regrets there, but for now i’m very relaxed about that element.

    Switching from saving to spending is daunting. I’ve given it very little thought but definitely need to start getting my head around it. Bear a thought for similar people retiring 20 years ago – right up to their last day they’d have been receiving a little brown envelope with their payslip every month, a ritual ceremony that whilst extremely welcoming, would psychologically have tied them to the desk (it was one each back then!) that little bit tighter. I’m a big fan of the ‘living off the dividends’ (providing they keep paying them) – like you it just seems as though you’re not dipping into the pot, even though you are.

    For the 25% tax free pension lump sum, i’m thinking if you’re not troubling the LTA, and you don’t have any immediate grand spending or great tax efficient investing plans for it, why withdraw it early. Unless you foresee the Government tightening up the pension taxes (and they may well do!) i’d be inclined to leave it and withdraw it gradually each year in the most tax efficient manner.

    Self sufficiency could be another ‘Plan B’ that borderline FIREers might have in reserve, providing they could commit to the lifestyle and requirement to put in a hard days graft (will be increasingly difficult after a certain age). The Tom and Barbara lifestyle does have a real appeal to me, more as an option though rather than a Plan A. The thought of having to actually rely on a harvest would be far too much pressure.

    Reading the recent superb Monevator decumulation posts has put my head in a real spin. There are obviously lots of clever actuary types out there pondering the subject, but no one retirement solution for us all. Lots to think about. And it’s getting late!

    • Hi KC

      Ha, if you’ve been at this dastardly decumulation lark for 20+ years, I’ve still got some time to go before I find something that’s clearer than mud!

      Same here, it’s never crossed my mind to cash in my DB pension, the guaranteed aspect of it provides a lot of comfort. I know one colleague who cashed his in for a good 6-figure sum and put it in a SIPP – he admitted to sleepless nights when the stockmarkets crashed and from the sounds of it, his pot still hasn’t fully recovered despite the gains of 2020 so sounds like his ‘financial adviser’ sold and bought at the wrong time for him!

      Yes, I’ve been following the latest Monevator posts and it’s given me a lot to think on and read up on but I don’t think my head is there yet so I will wait a while longer before diving in for more analysis and planning!

      All the best with your planning!

  13. Brilliant and timely post. You’ve read my mind!

    I’ve been thinking about very similar variables recently – been pondering the same steps wondering if there could be a simple step by step explanation somewhere on how to transfer one’s accumulation funds into income funds.

    My two pensions will be simple enough, I think. I just tell them I’m retiring and decide between drawdown or annuity. Maybe one each. No idea at the moment.

    My baby, though – my S&S ISA – that’s where I’ve got to work out what to do. And, like you, decide on the frequency of payments. My pensions will be monthly payments but potentially on dates, unless I can specify the same date for both.

    You’re graphic is excellent too. I’ll be doing one for myself. Unlike you, I will expect my FIRE fund to continue providing me with an income in addition to my DB pensh and then the State pensh. If I live to 67+ that’s when I’ll be hitting the Caribbean cruises baby!

    Interesting point you make about the potential for supporting relatives. I have a sister and a niece – both of which I have helped out financially on a regular basis and will be factoring the continuation of that support into my FIRE budget.

    I don’t know if you’ve also been thinking how both the UK and US general elections may effect the markets in four-and-a-bit year’s time. If the markets are affected deleteriously then hopefully there’ll be time for them to sort themselves out before I’m aiming to FIRE in mid-2025.

    I’ll be bookmarking this post as the first entry in my ‘The mechanics of actually FIREing’ folder. ‘How to actually FIRE’. What does one actually do? I’ve not seen much out there for UK-based FIREonauts.

    • Hey FIRE@55

      Great minds think alike 🙂

      Yes for me, it’s juggling my ISA with my SIPP – with the one being taxable (come withdrawal), I just need to balance them out to make the most the tax situation.

      It is my hope that the FIRE fund continues to provide me with income into my old age (the green bit continuing until I’m 100) but if that gets spent, then the DB and state pension will provide the minimum income, sadly with no Carribean cruises like you, haha!

      I don’t factor in effects caused by political events, I’ll just take things as they come I guess, or perhaps if I start getting a bit fearful, start shifting some investments into cash but I don’t know yet.

      Monevator is running a series on decumulation so those will be the posts to bookmark for when the time comes.

      • Cheers Weenie!

        Your post’s link to Sovereign Quest’s page featuring the numerous posts on Decumulation is a perfect resource to file and return to.

        Monevator’s posts are something of a steep learning curve for me and I started to feel panicky and out of my depth. Then I read MedFi’s MVP post and everything felt more achievable. A minimum viable plan is something I can achieve. It might not be the perfect solution but as long as I’m doing something that leads to me receiving an annual income that covers my expenses then all’s good.

        It’s great that there are such a range of posts on this going into varying levels of detail. Something for everyone.

  14. Hi Weenie,
    Great stuff, enjoy your posts as ever. I’m a similar age to you and wrestling with the same dilemma. An elderly relative used to say that the key to successful retirement was to time it so that your breath and money run out on the same day. If you were able to go ‘back to the future’ and look back to now, my guess is you’d have enough money already but we tend to be cautious running all the what if scenarios. I’ve set myself a target of 2 years to pull the work plug, whether I do or not remains to be seen but I guess there comes a point where it becomes a jfdi moment keep writing in the meantime, it helps all to ponder the same.

    • Hi Hopeful Firer

      Yes, although I’m someone who has a generally optimistic outlook on life, I think I will still be cautious when it comes to this kind of planning. I can see myself underspending rather than overspending in the first instance but I think the switch to spending will take some time.

      Best of luck with pulling the work plug in 2 years! I think the numbers are likely to be fine, it’s the mental aspect which will be tougher.

  15. Hi weenie, I think you should do the nitty gritty! and I guess you have, at least in your head. You will take income in as a tax efficient way as you can, so that will steer your withdrawals. It all comes down to how much you spend each year and whilst many people have no real clue (or control!), I am sure you have a good feel for it. Yes you won’t know all of it but you can allow for small contingencies.
    This is the best bit, its what you have been working for!

    I am still 5 years from my state pension but it was 18 years when I ‘fired’. It was also 8 years before I could start to take any income from my SIPP . Investments mostly steered towards dividend income may not give you the best total return but it sure helps you sleep at night!

    Good luck with your plans and I look forward to seeing how it goes.

    • Hi Tim

      Well you’re partly right, I did start doing the nitty gritty but there were too many things to consider and it started to do my head in so it’s nowhere near complete!

      I do intend to take my income in the most tax efficient way but I haven’t really looked at how I will do that practically but I will get this planned at some point.

      Wow, well done to you FIREing 18 years ago in your 40s! Absolutely agree with you on the dividends front – I won’t have a big enough pot for such income to cover all my expenses but just having some of my costs covered by dividends will allow me to sleep better at night!

  16. Great post, am loving this series, have just read fiukmoney.co.uk and am motivated to do my own. I love your diagram and agree I am where you are with a high level rule of thumb with an idea on the shape of my income but not in detail or that nitty gritty you mention.
    Like you doing a bit of paid work to support FI or to take that Caribbean holiday doesn’t bother me and I will def be open to the option to work to boost savings or for big purchases. Again like you the state pension is in my plans. I heard / read somewhere that gvt will find it difficult to withdraw the winter fuel payment due to backlash from older tory voters so I really can’t see anything significant happening to the state pension, other than raising the age – which I have no issue with. Good luck this could make a good meet up?

    • Hi Cath

      Cheers for reading and I enjoyed writing this, even if to just get some thoughts down so I can revisit in the future.

      I think having a basic plan is better than having no plan but I’m not ready to commit to a detailed plan yet because there are too many unnknowns. Perhaps I’ll know better in a few years’ time, a little older and a little closer to FIRE!

      I read somewhere that as people age, they all become older Tory voters, so yes, I can’t see significant changes happening to the state pension any time soon as it would be too unpopular.

      Yes, this could make a good meet up but perhaps some people who are already in their decumulation phase would have a lot to input on too, ie say what they are actually doing to get their income.

  17. An interesting question about the State Pension and means-testing. I hadn’t considered that as a possibility – I always just figured they’d keep moving the goalposts until one day it disappears. I’m not basing my retirement on the state pension; if there is still one by the time I reach the age, then it will be a bonus, but I have more or less given up on the state providing me with anything useful!

    I am aiming for a set figure from a mixture of different assets – I don’t think I will get to the number I’ve got in mind, but if you don’t aim high you will never achieve anything. My plan is also based around protecting my capital; I want the security of being able to live off the interest/dividends etc, rather than drawing capital/selling assets – again, I don’t know if I will be able to do that, but that is what I’m aiming for!

    Just as a brief aside, did you ditch your Football Index “investments”?

    • Hi Ben

      Personally, I can’t see there not being a state pension, otherwise what happens to those who don’t have any savings or private pensions or who opted out of auto-enrol? I think likely the government may just make it ‘harder’ for those of us who have other pensions/savings, hence the means testing.

      COVID-19 must have surely put a halt on ever increasing life expectancies, so I can’t see them continuing unabated along that path? Perhaps at some point, they will make auto-enroling compulsory.

      I’d love to be able to live solely off dividend income but I started too late to accumulate a large pot so will be happy if just some of my income will be covered by dividends. Good luck with your own plan in any case.

      Football Index – it’s just as well I didn’t see that as ‘investing’! Listened to the livestream call the other day run by various members of the community and it is really sad how it’s all gone – some people had 6-figure sums when it all went under but they should have understood that it was a gambling product. Sadly, I hadn’t been paying any attention to my own portfolio and should have cashed out when I could – I hadn’t realised how much I still had in there when it all went belly up. This has just been written off as gambling losses, hopefully not to be repeated again!

  18. This is awesome weenie, I love your well-detailed plan, I am a big fan of planning. That simple little chart of yours is super educational! Great stuff 🙂

  19. Hi Weenie,

    Second time lucky with the comment. I think i scrolled too far and sent you a message by mistake…

    I love the simplicity of that diagram. Really gives food for thought. I’d not considered the state pension as it seems a long way off, but actually is not for me. It could knock a couple of years off my date.

    PS: This is my new account signed the blogger formally known as Playing with FIRE UK.

    • Hey Wealthster

      Glad you like the diagram – I’m sure in reality, it won’t be that simple but it’s the basis of a more detailed plan!

      Here’s the inclusion of the state pension knocking years off your plan and all the best with the new brandname!

  20. Really interesting read. Can not wait to see how it actually pans out for you.

    There is so much talk on how to FIRE and build wealth, yet seemingly very little about how best to start spending!

    I like dividend investing for that reason, I don’t/won’t really have to think about it really.

    Sidenote – I’ve just opened a LISA with Hargreaves!

    • Hi Sean

      Cheers – I think many people who have reached FIRE don’t blog about their journeys although there seem to be a few more appearing this past year.

      All the best with you LISA with HL – if I’d been young enough to open one, I think I would have!

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