• Contact us
  • About us
  • Digital edition
  • Online archive
Monday, June 9, 2025
Cumberland and Westmorland Herald
  • News
    How can businesses combat increased pressure on cashflow and profitability?

    How can businesses combat increased pressure on cashflow and profitability?

    Penrith Players present Noel Coward’s Hay Fever

    Penrith Players present Noel Coward’s Hay Fever

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Farmers flock to North Sheep

    Farmers flock to North Sheep

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Appleby Horse Fair: Several cases of animal cruelty

    Appleby Horse Fair: Several cases of animal cruelty

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Free domestic abuse support drop-in service launches in Penrith

    Free domestic abuse support drop-in service launches in Penrith

    Penrith bar relaunched with vibrant events planned

    Penrith bar relaunched with vibrant events planned

  • Sport
    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

    Cumberland and Westmorland wrestlers head to European championships

    Cumberland and Westmorland wrestlers head to European championships

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    How can businesses combat increased pressure on cashflow and profitability?

    How can businesses combat increased pressure on cashflow and profitability?

    Penrith Players present Noel Coward’s Hay Fever

    Penrith Players present Noel Coward’s Hay Fever

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Farmers flock to North Sheep

    Farmers flock to North Sheep

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Appleby Horse Fair: Several cases of animal cruelty

    Appleby Horse Fair: Several cases of animal cruelty

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Free domestic abuse support drop-in service launches in Penrith

    Free domestic abuse support drop-in service launches in Penrith

    Penrith bar relaunched with vibrant events planned

    Penrith bar relaunched with vibrant events planned

  • Sport
    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

    Cumberland and Westmorland wrestlers head to European championships

    Cumberland and Westmorland wrestlers head to European championships

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
No Result
View All Result
Home Expert advice
This article appears as part of a paid partnership with Armstrong Watson

Cash flow modelling for retirement

by CWH
3 July 2023
in Expert advice
A A
Share on FacebookShare on Twitter
Nick Birtle, of Armstrong Watson

Having a cash flow model can help you make well-informed decisions about your retirement, not to mention give you the confidence to retire.

Below is an example of what a cash flow model looks like.

We can change parameters such as current assets, mortgage balances, and suggested investment returns (which we tailor to your own risk profile).

While the model is dependant on a number of assumptions, it can help you plan when you might be able to retire, the level income that could be achieved and if that income is likely to be maintained throughout your life.

How much will I need to retire?

When speaking to people about retirement, some people say, “I will never retire” or, “you need at least £1 million to retire”.

In reality, retirement is a lot closer than most realise, especially if you put a plan in place and see it through.

As a rule of thumb, you should be able to take four per cent annual income from your pension pot and it last at least 30 years. This is known as the Four Per Cent Rule and is the work of William Bengen, a well-respected retired financial adviser.

In other words, take the income you need in retirement and multiply it by 25 to give you a target investment pot. The Retirement Living Standards suggest a couple will need £19,900 a year to achieve the minimum standards of living in retirement. This means they would need almost £500,000.

For example, a 30-year-old couple with no savings could each invest £60 per week. To put that figure into context it’s approximately 10 per cent of the weekly UK average salary (£642).

If we invest that money and receive the historic average annual return of the global stock market, which is nine per cent, the £500,000 target would be achievable in 24 years.

Some might say that’s a long time period, which it is, but the couple who had not saved a penny during their 20s could retire at the age of 54. If they started when they were 25 they could retire before their 50th birthdays.

As another example, a married couple has £100,000 in savings and can invest £400 per month each. Using the same assumptions, this couple could grow their wealth to £500,000 within 12 years.

Every person and every family’s situation is different. Some require more income than others, some are flexible on their retirement age and others are not. Above are just high-level examples of what is possible from the power of regular investing and compound interest.

In reality, an assessment of spending habits, attitude to risk profiling, and annual review meetings are essential in ensuring clients achieve their long-term goals.

Cost of retirement

Expenses for people in retirement tend to be lower than during their working lives. There’s less commuting, no need to buy work attire, and you have more time to food shop and make your own meals.

In addition, the State Pension can supplement your income once you reach the appropriate age. There is also no requirement to fully retire all in one go. If you don’t like your current job, you might want to ‘retire’ 10 years earlier and work part-time in a business that you find interesting.

The possibilities and options are endless. There’s no need to feel confused or worried about retirement. Cash flow modelling can bring you that peace of mind and confidence by helping you look at all the scenarios available to you, and picking the one that will bring yourself and your family the most joy.

If you would like to view a cash flow model personal to your own circumstances, perhaps work out the age that you could retire or understand how much income you might be able to take in retirement please get in touch. Contact Nick on 01768 222080 or email nick.birtle@armstrongwatson.co.uk

Related Posts

How can businesses combat increased pressure on cashflow and profitability?
Expert advice

How can businesses combat increased pressure on cashflow and profitability?

8 June 2025
Changes to business rates
Expert advice

Changes to business rates

25 May 2025
Turning 75: the impact on tax-free cash, pension tax relief and death benefits
Expert advice

Turning 75: the impact on tax-free cash, pension tax relief and death benefits

18 May 2025
Rethink your password in light of recent cyber attacks
Expert advice

Rethink your password in light of recent cyber attacks

8 May 2025
Updates to Making Tax Digital for Income Tax
Expert advice

Updates to Making Tax Digital for Income Tax

29 April 2025
Further measures to close the tax compliance gap
Expert advice

Further measures to close the tax compliance gap

15 April 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

Farmers flock to North Sheep

Farmers flock to North Sheep

6 June 2025
Honorary assistant bishop Geoffrey Hewlett Thompson

Honorary assistant bishop Geoffrey Hewlett Thompson

6 June 2025
How can businesses combat increased pressure on cashflow and profitability?

How can businesses combat increased pressure on cashflow and profitability?

8 June 2025
Penrith Players present Noel Coward’s Hay Fever

Penrith Players present Noel Coward’s Hay Fever

7 June 2025
Former Appleby mayor Frank Harland

Former Appleby mayor Frank Harland

6 June 2025
Cumbrian animal charity celebrates with dog show for opening of new kennel complex

Cumbrian animal charity celebrates with dog show for opening of new kennel complex

6 June 2025
Cumberland and Westmorland Herald Logo

33 Middlegate
Penrith
Cumbria
CA11 7SY

Phone: 01768 862313
Email: news@cwherald.com

Registered in England as Barrnon Media Limited. No: 12475190
VAT registration number: 343486488

Explore

  • News
  • Sport
  • Farming
  • Property
  • Obituaries
  • Nostalgia
  • Your view

Useful links

  • Contact us
  • Photosales
  • Online archive
  • Buy your paper
  • Digital edition
  • North Lakes Living
  • Advertise
  • About us

Follow us on

© Barrnon Media Limited 2025

Terms & Conditions / Privacy Policy / Cookie Policy

This website and its associated newspaper are members of the Independent Press Standards Organisation
IPSO Logo
Review Your Cart
0
Discount
Add Coupon Code
Subtotal
Total Installment Payments
Bundle Discount
Checkout

 
0
No Result
View All Result
  • Home
  • News
  • Sport
  • Obituaries
  • Nostalgia
  • Online archive
  • more
    • North Lakes Living
    • Buy Photos
    • Buy your paper
    • About us
    • Contact us

© 2020 Cumberland & Westmorland Herald