We're retiring next summer, aged 63/60
Total net worth is about £1.64 million, made up of:
a. Defined Benefit pension, when valued at x20 the annual income (and allowing for early take on) worth £600,000
b. House, mortgage paid, worth about £370,000
c. Other DC pensions, SIPPs, ISAs worth around £670,000 - this will be invested in income producing trusts, funds etc., after keeping aside about £55,000 which I'll use to "pay" us the equivalent we'll get from our state pensions until they come on stream.
Interesting to see this thread again, and to review my own post from just over two years ago. Mrs PD and I retired at the end of April last year, and we're doing really, really well. Our net worth has improved also. We are significantly better off than we ever imagined we would be when we first started planning our retirement about six years ago.
We have guaranteed income from our defined benefits pensions, and the state pension of around £44,000 p.a. (I will receive the state pension next year, and Mrs PD in three years - in the meantime we have a ring-fenced cash sum which is "paying" us the post-tax equivalent until they come on stream.)
We have around £750,000 in SIPPs and ISAs which contain a diversified portfolio of income producing Investment Trusts, which include trusts focussed on equities, fixed interest, property and infrastructure. The dividends from these amounted to £38,000 in the last 12 months.
So our combined total income is just over £80K and we are mortgage-free. Now, readers here will know that all pension income from whatever source is taxable, but there is no national insurance to pay. With the personal allowances of £12,500 each, and the dividends from the investments in our ISAs (about £10K) being tax free, AND carefully balancing our assets over the last few years so that neither of us gets into a higher tax bracket, the income tax isn't too bad. In any case, we feel privileged to be so comfortably off and don't begrudge the taxes at all.
I have to admit that we have behaved very un-mustachian over the last year. Lots of holidays, spoiling the grandkids etc. We are calming down a little now!