Timeyin Akerele

And then you flipped it.

They would go through the same journey for four years.

They would have a hundred thousand pound difference at the end, even though the return, average return over the four year period is the exact same.

They both have the same risk.

Yeah, it's essentially, I think a good way of describing it is you're kicking your portfolio when it's down.

So in that first year when it goes minus 25% and you have to take 50K, it never recovers from that position.

It's a deadweight loss.

Yeah.

It's a deadweight loss.

You're not taking credit for any of this.

You did take credit for justice.

So can you explain what the PCR and PWR bit of this table is or what that means here?

These are sorts of like the what is the meaning of life question for pension savings, aren't they?

How much should I pay in and how much can I take?

It's like the impossible question to answer in a way.

Wow.

I think an interesting insight about annuities

this is probably put out by an annuity provider, but they basically showed that people will spend far less from a pot than they will from the income that they get from an annuity because they're quite cautious.

you will blow it you want to because you want to spend it before you die anyway so you're like I'm getting this money I might as well spend it if they give you 7 grand a year say off 100k or if you get 100k I think the research shows people spend 2 or 3 because they're really cautious about running out whereas you're never going to run out with an annuity are you that's the point

Yeah, I know economists love them, but individuals tend to hate them because you're basically taking a bet, aren't you?