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All state pensioners have been urged to obey a "4 per cent rule" from age 66. State pensioners can currently qualify for the state pension from the Department for Work and Pensions ( DWP ), and thus retire, from age 66.

The 4% rule says you can withdraw 4% of your investments in the first year of retirement and give yourself a raise for inflation every year after that for 30 years with minimal risk of running out of money.

William Bengen, inventor of the ‘4% rule’, said savers in the first year of retirement should withdraw 4% of the starting value of their pension pot. That annual income should rise each successive year by the rate of inflation, irrespective of any fluctuations in the value of the pot.

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