Grace: Retirement across systems

Meet Grace

“I have pensions in three countries and no idea what they add up to.”

Grace has built a career across borders, and with it a scatter of pensions: a workplace pot in one place, a guaranteed entitlement in another, and a small scheme overseas. Each has its own rules, ages and currencies. Her challenge is not a lack of savings but a lack of one clear picture.

The situationWorked in three countries · Pensions in more than one system · Planning retirement in the next decade
The decisionWhat will she actually have, and when? Is she on track, and what is the biggest risk in the years before she retires?
Grace’s toolsLosses and recovery, Rebalancing, Withdrawal rates, Retirement readiness, Pension sources across systems

The portrait and the quoted line are illustrations written for this companion. Situations follow the book; figures on this page are modelling assumptions.

Explore the numbers

Work through the case, step by step

Each step uses a tool with Grace’s situation already filled in. Change any number to see another outcome.

The mapAll her pensions in one picture

Grace’s numbers. Modelled for this case, ready to change.

Put every source on one table with the age it starts.

Available at 65: $1,100per month
When every source has started: $2,300per month
Coverage of your target at retirement: 37%
Gap at retirement: $1,900$1,200 a month starts later

Source	Starts	Per month	At retirement?
Source 1	Age 60	$600.00	Yes
Source 2	Age 67	$1,200	Later
Source 3	Age 65	$500.00	Yes

What this means

Seeing everything in one table is the first win: most people with pensions in several places cannot say what they will have, or when.

A gap at retirement that closes later may be bridged by working a little longer, part-time work or using savings to cover the years before a pension starts.

Notice: Change the retirement age and see which sources have started and which are still to come.

Open the full “Pension sources across systems” page: formula, worked example and cautions →

The testIs she on track?

Grace’s numbers. Modelled for this case, ready to change.

Compare what she is building with what she wants, in today’s money.

Projected pot (today’s money): $255,639$303,874 in future money
Pot needed (today’s money): $540,000
Monthly shortfall: $947.87Pot would pay $852.13 a month; you need $1,800
Extra to save each month: $3,442Starting now
Years to go: 7

What this means

If you are short, there are four levers in order of power: save more, retire later, expect to spend less, or increase other income. Retiring two years later usually helps more than people expect: more contributions, more growth and fewer years to fund.

Treat this as a yearly check, not a forecast.

Notice: Moving retirement from 65 to 67 usually has a bigger effect than people expect.

Open the full “Retirement readiness” page: formula, worked example and cautions →

The incomeHow long might a pot last?

Grace’s numbers. Modelled for this case, ready to change.

Drawing money from a pot is different from building it.

First-year income: $16,000$1,333 a month
Still funded after 30 years: $120,608

Rate	Per year	Per month
3.0%	$12,000	$1,000
3.5%	$14,000	$1,167
4.0%	$16,000	$1,333
5.0%	$20,000	$1,667
6.0%	$24,000	$2,000

What this means

This simple model assumes a steady return. Real markets are uneven, and bad returns early do far more damage than the same returns late. Treat a single result as one scenario among many.

State pensions, annuities, property and other income change the picture.

Notice: Try a higher rate or lower return and see when the pot runs out.

Open the full “Withdrawal rates” page: formula, worked example and cautions →

The riskA fall just before retirement

Grace’s numbers. Modelled for this case, ready to change.

The years either side of retirement carry the greatest risk, because there is little time to recover.

Gain needed after a 30% fall: 43%
Years to recover at your return: 7.3
+50% then −50%: -25.0%75 left of every 100

Fall in value (%) on the horizontal axis.

Gain needed to recover (%)
Fall (%)

What this means

The curve bends upward: small falls are easy to recover from; large ones are punishing. This is why risk is about what you cannot afford to lose, not about averages.

It is also why staying invested through falls matters: selling after a fall turns a temporary loss into a permanent one.

Notice: A 30% fall needs a 43% gain: a fall at 64 is much harder to recover from than one at 34.

Open the full “Losses and recovery” page: formula, worked example and cautions →

The figures on this page are modelling assumptions chosen for this companion to illustrate the situation. They are not quoted from the book, and are not personal advice. Change every one.

The lesson

Retirement planning across systems starts with a single list: every source, its amount, its start age, and who guarantees it. Then test it against the life she wants, and protect the years around the date she stops.

In the book: Ch 20: Risk and Return in Practice · Ch 22: Building and Keeping a Portfolio · Ch 24: Retirement Across Systems · Ch 25: Wealth, Time and Your Financial Strategy

Now your turn

Apply the same idea to you

Meet the others

DavidIncome without wealth MariaThe quiet power of margin SofiaBuffers and irregular income Anir & KatiaThe biggest decision of their lives

Grace58

Work through the case, step by step

What this means

What this means

What this means

What this means

Apply the same idea to you