“Do I have enough to retire on?” is a common enough question, with many investors wondering whether they have amassed enough wealth. But even those with seemingly abundant assets could benefit from assessing their spending and asking whether this should be adjusted for a more sustainable retirement.
Jim is just 55, and he and his 54-year-old wife Rose have already built up a net worth of £2.3mn. This is spread across multiple assets and accounts, from mortgaged holiday rental properties, Isas and pensions to more esoteric investments such as physical gold coins, cryptocurrency and enterprise investment schemes (EISs). Both Jim and Rose will also receive defined-benefit (DB) pension income. The couple own their own home but still have an outstanding mortgage of nearly £500,000.
Jim is now weighing up retiring, when he will draw down his assets. But he wants to know if shifts in his lifestyle could help. “I understand the logic of the common 4 per cent drawdown guide, but my question to your experts is the other way around,” he says.