When can you retire on dividends?
Three projections — Bear, Base, Bull — alongside a probability-weighted average. UK mode covers ISA, SIPP, GIA and State Pension; US mode covers 401(k), IRA, Brokerage and Social Security. Numbers stay in your browser.
FIRE number
£900K
Base · age 55
£2,626.89/mo
Your numbers
Adjust the inputs and every output below recalculates instantly.
SIPP access from age 55
FTSE All-World ≈ 8% p.a. over 30 years (nominal).
Typical dividend-focused portfolio: 3–5%.
Enter in today's GBP. The calculator works in real terms — your expected return assumption should already be net of inflation (so 7% nominal − 3% inflation ≈ 4% real if you'd rather think in nominal terms).
Off = dividends taken as income from day 1; on = compounded into the portfolio.
UK tax wrappers
Allocate your monthly contributions across ISA, SIPP, and any leftover General Investment Account (GIA).
Tax-free growth and tax-free dividend income. £20,000/yr cap.
£60,000/yr cap. Income-tax relief in, taxable on drawdown.
Remaining 0% flows to a General Investment Account (GIA). Dividend allowance £500/yr.
State Pension supplements your portfolio income from age 67 onwards.
2026/27 full new State Pension is £241.30. Check your forecast at gov.uk.
Currently rising 66 → 67 through 2026/27; legislated to rise to 68 from 2044.
25% tax-free lump sum
At retirement, take up to 25% of your SIPP tax-free (Pension Commencement Lump Sum). Capped at the £268,275 Lump Sum Allowance.
Off = leave the SIPP fully invested; income is calculated on the whole pot.
Stays earning at your dividend yield, in a taxable wrapper.
Removed from portfolio. Adjust your target income to reflect lower outgoings.
One-off withdrawal — holiday, gift, peace of mind.
Property & other assets
Tracked alongside your portfolio for net worth. Main residence doesn’t feed FIRE income (you have to live somewhere); buy-to-let rental income does.
Today's value minus outstanding mortgage.
UK long-run average ≈ 2–3% real.
Net of any mortgage outstanding on the rental property.
After agency fees, maintenance, void allowance — what actually lands in your account.
Business equity, cash, collectibles. Net worth display only.
Your FIRE number
£900K
Portfolio needed at age 55 to throw off £3,000.00/mo at 4.0% yield — your full target until State Pension starts.
Phase 1 · bridge years
12 yearsAge 55 → 67
- From portfolio dividends£3,000.00
- From State Pension£0.00
- Total monthly£3,000.00
Phase 2 · State Pension on
for lifeAge 67+
- From portfolio dividends£1,954.37
- From State Pension£1,045.63
- Total monthly£3,000.00
25% tax-free lump sum (Base scenario)
£39.4K
25% of your projected SIPP value at age 55, capped at the Lump Sum Allowance (£268,275). Tax-free.
Reinvested in GIA
£39.4K
To mortgage / debt
£0
Cash for spending
£0
Income breakdown
Where your monthly income comes from at age 55, Base scenario.
Total monthly
£3,672.52
vs your £3,000.00 target: +£672.52.
- £2,101.51
ISA dividends
Tax-free — no income tax on dividends or growth.
- £525.38
SIPP dividends
Drawdown counts as income. 25% tax-free lump sum already applied.
- £0.00
GIA dividends
First £500/yr covered by the dividend allowance.
- £1,045.63
State Pension
2026/27 full new State Pension is £241.30/wk — taxable income.
Tax notes are informational. This is not financial or tax advice.
Portfolio projection
Bear / Base / Bull paths from now until age 55.
- Bear Base Bull
Bear = base return − 2pp / yield − 1pp. Bull = base return + 2pp / yield + 1pp. Probability weights 25 / 50 / 25%.
Scenario summary
What each scenario looks like at retirement.
| MetricAt age 55 | BearAge 55 | BaseAge 55 | BullAge 55 | Weighted avgAge 55 |
|---|---|---|---|---|
| Portfolio at retirement | £475.5K | £788.1K | £1.3M | £849.9K |
| Annual dividend income | £14.3K | £31.5K | £67.4K | £36.2K |
| Monthly dividend income | £1,188.78 | £2,626.89 | £5,616.31 | £3,014.72 |
| vs your target | −£1,811.22 | −£373.11 | +£2,616.31 | +£14.72 |
| Years to FIRE number | 33.0 yrs · age 63 | 27.0 yrs · age 57 | 23.0 yrs · age 53 | 27.5 yrs · age 58 |
How to close the gap
Base scenario falls short of your target by £373.11/mo. Pull one of these levers to close it.
Raise monthly contribution to £572
+£72 from your current £500/mo
Splits across ISA, SIPP and GIA in the same proportions you set above.