What is a ‘safe’ drawdown % in this current financial situation?

09 January 2023

Question by Lina

What is a ‘safe’ drawdown % in this current financial situation, for a 66 year old single lady with a balanced portfolio of around £470,000.00 pot. I like to make sure I don’t withdraw too much. Thank you!


Answered by Boring Money

Hi Lina,

The next question I would be asking you is "you would like to make sure you don’t withdraw too much for what?".

Are you reliant on your drawdown pension to be able to cover your bills?

Do you use your drawdown pension just for luxuries?

Do you have other assets that you could access?

As you can see, the answer to your initial question will depend very much on the rest of your financial circumstances.

The old fashioned, unscientific rule of thumb was that you should not withdraw more than 4% a year from your pension.

However, this was a very lazy answer for those who did not want to spend the time creating a bespoke answer for their clients!

I would recommend two course of action for you:

1) Read "Beyond The 4% Rule: The science of retirement portfolios that last a lifetime". Here is an Amazon link for you.

2) Speak to a Financial Planner who will get to know you and give you an answer based on the number that is right for you, not right for everyone else.

I hope that helps and please feel free to get in touch.

Joshua Gerstler
FPFS, Cert SMP, FCA
Chartered Financial Planner

Answered by

Boring Money