The original plan when I started drawdown in 2012 was to generate a rising natural income from which I would withdraw 4% income which I calculated should be sustainable over the longer term without depleting the capital. This would bridge the 10 year gap between early retirement at age 55 yrs and state pension.
|(click to enlarge)|
Here is the current portfolio
In June 2012 when I started this series on my drawdown journey, the FTSE 100 was 5,500 and has risen to 6,292 - a gain of just 14.4%. If we add in average dividends of say 3.8% each year, this gives a rough total return of 45%
In June 2012, the Vanguard LS 60 (acc) price was £105 and today stands at £199 - a gain of 89% or annualised average of 8.3% p.a.
Taking account of the income withdrawn over the past 8 years of £19,400, the total return including income is 135% which is very satisfactory and works out at an average annualised return of 11.3% p.a.
If you are managing your SIPP accumulation or drawdown or you are planning to do this, feel free to share your experience in the comments below.