Royston Wild Says £99 Monthly Could Build £1.85 Million SIPP for £74,144 Income

Q: With the 4% rule now questioned, what is the truly safe withdrawal rate for retirees in 2026?

For most retirees in 2026, a prudent starting point is about 3.9% a year, not a blanket 4%, with 3% to 3.5% safer for very long retirements and around 4.5% to 4.7% only reasonable for some 30-year retirements with the right portfolio and flexibility. That reflects where the research now stands. Morningstar’s forward-looking work has put the 2026 safe withdrawal rate near 3.9%, while William Bengen, who created the 4% rule, has said a 4.7% starting rate can work for a 30-year retirement using a diversified portfolio with roughly 65% equities, 30% bonds and 5% cash. More cautious planners still argue for about 3.0% to 3.3%, especially when bond yields, valuations, longevity and early-retirement risk are concerns. The key point is that there is no single “truly safe” rate. Safety depends on retirement length, taxes, fees, asset mix, and whether spending can be cut after bad markets. A retiree expecting 40 years or more should usually start lower, often around 3% to 3.5%, because sequence-of-returns risk is much greater. Someone with a state pension, annuity or other guaranteed income covering essentials can often take more risk with the invested portion. That also means Royston Wild’s use of a 4% drawdown is best seen as an illustration, not a guarantee. In 2026, the safer approach is to start near 3.9%, stress-test the plan, and use flexible “guardrails” so withdrawals rise or fall with markets rather than staying fixed regardless of conditions.

1 articles · Updated · twelfthmagpie.com · Jul 5

£99 a month could grow into a £1,853,603 SIPP over 45 years and support £74,144 in annual passive income, based on a 4% drawdown and returns 2 percentage points above the market average.
That projection relies on using tax-efficient wrappers such as SIPPs and Stocks and Shares ISAs; for a higher-rate taxpayer, 40% SIPP relief would lift a £99 contribution to £124.
At the stock market’s long-run 9% annual return, the same £124 monthly investment would build a £918,205 portfolio, producing about £36,728 a year at a 4% withdrawal rate.
Wild says he aims to beat that baseline through a diversified mix of index funds, ETFs and selected shares, citing Games Workshop, which he says has returned 123% since 2020 and 17.5% annually including dividends.
The strategy is framed as a long-term, lower-risk alternative to speculative bets, with tax treatment and investment outcomes still dependent on individual circumstances and future performance.