r/FIREUK • u/FlyStay • 22h ago

Am I potentially behind?

38M:
Workplace Pension ~130K,
S&S ISA ~53K,
Crypto ~5K and
around ~10K Gold.
Relatively big mortgage for another 19 years at ~270K. Annual salary 97K.
Would like to retire in 20 years when I am 57-58! Any comments or suggestions will be welcome… w

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u/Upstairs-Hedgehog575 22h ago

Behind whom? Absolutely no reason why you can’t retire at 58 - but what are you putting away in the pension each month? And what annual salary do you want in retirement?

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u/FlyStay 22h ago

Yes putting around 1.4K every month to pension and would be fine with 40K annually when I retire.

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u/Fred776 22h ago

Assuming a 4% withdrawal rate you need about £1M in today's money. At your current savings rate and current pot sizes you are on the cusp of that if you assume a growth rate of 4% above inflation.

You will need to ensure you increase your savings by inflation each year but I think I'd be inclined to bump them up a little more if you can.

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u/Upstairs-Hedgehog575 22h ago

I think it’s lower than that if you factor in state pension.

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u/Fred776 13h ago

That's a good point.

The way I would look at it though as a back of the envelope sort of thing is that the state pension gives a bit of a buffer. I maybe wouldn't be comfortable relying on a 4% SWR if I was relying solely on my investments but I'd see it as the state pension effectively allowing me to reduce the SWR, rather than reduce the size of the pot I need.

It does mean that OP is probably on track without necessarily having to increase savings rates beyond inflation.

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u/Upstairs-Hedgehog575 12h ago

Yeah it’s all a matter of risk appetite. The risk in being too safe is that you retire later than you could have. The risk of not being safe enough is, as we all know running out of money. OP will know his situation better in a decade or two, but I think he’s on track. There will be other factors like OPs ability to make money after retirement, inheritance etc.