£100,000 pension pot? How to avoid being penniless at 80
If you’d taken 7% a year from the year 2000 the cash would have run out by 2014. So what can you do?
How long will your pension savings last in retirement? Analysis by investment advisers Hargreaves Lansdown suggests that drawing down much more than 5% a year could leave you penniless in your 80s.
Hargreaves examined the real-life outcome of retiring in 2000 with a pension pot of £100,000. It found that if you took out 7% a year – in other words you drew down £7,000 annually – by 2014 your money would have run out.