How much would you need to be able to retire right now?
Discussion
Posted in The Lounge as I figure if you're in the Finance forum you may already be thinking about this stuff so it would be good if it wasn't moved 
Prompted by the What would you do with £2m? thread I'm curious how much someone would need to hand you right now for you to be happy you'd never need to work another day in your life if you chose not to.
Hopefully everyone invests and hopefully everyone is aware of the power of compounding from a base sum left for a long period of time.
If you would choose to continue to work that's fine too but then I guess the question is how much would you need as " f
k You Money"?
No rules so you can own a house or factor in buying one or rent one or whatever.
Prompted by the What would you do with £2m? thread I'm curious how much someone would need to hand you right now for you to be happy you'd never need to work another day in your life if you chose not to.
Hopefully everyone invests and hopefully everyone is aware of the power of compounding from a base sum left for a long period of time.
If you would choose to continue to work that's fine too but then I guess the question is how much would you need as " f
k You Money"?No rules so you can own a house or factor in buying one or rent one or whatever.
Inflation is the big one. Who knows where that'll end up and where the options to protect your money will come from.
That makes quoting upfront figures a bit meaningless.
I don't cost a lot to run and don't have any dependents or addictions so the equivalent of 25 grand a year in today's buying power would do me perfectly well. I might last 40 more years if I'm very jammy so £1 million to stay alive and whatever on top for tat, sex changes, beach hut etc.
That makes quoting upfront figures a bit meaningless.
I don't cost a lot to run and don't have any dependents or addictions so the equivalent of 25 grand a year in today's buying power would do me perfectly well. I might last 40 more years if I'm very jammy so £1 million to stay alive and whatever on top for tat, sex changes, beach hut etc.
£5m please in order to never need an income again.
But I’d still need to work at something. I like the feeling of productivity / achievement / teamwork. For me work is partly about money, but partly about other things.
I think to work purely for money to buy stuff and little else would feel like a life wasted.
But I’d still need to work at something. I like the feeling of productivity / achievement / teamwork. For me work is partly about money, but partly about other things.
I think to work purely for money to buy stuff and little else would feel like a life wasted.
I’m confident with £1m in the bank I wouldn’t ‘need’ to work again. However that wouldn’t afford me the lifestyle I’m working towards.
£6m would get me to the point where I’m confident I have £5m set aside for anything I might need/want and £1m to start a charity, where I’d work full time.
£6m would get me to the point where I’m confident I have £5m set aside for anything I might need/want and £1m to start a charity, where I’d work full time.
I did retire in terms of "took my pension", same with the wife. We both still work as well though, which pays for nice things. (Hello Speedmaster and DJI Mavic 2 Pro).
To decide if we could afford to do so it was based on needing £1k/month for outgoings as we have no mortgage on our house. This leaves and ample amount from our pensions, so we can stop working any time we wish.
Both of us considered a pension transfer but decided that we were too risk averse.
To decide if we could afford to do so it was based on needing £1k/month for outgoings as we have no mortgage on our house. This leaves and ample amount from our pensions, so we can stop working any time we wish.
Both of us considered a pension transfer but decided that we were too risk averse.
I think that before anyone thinks of a figure for retirement the first question is what you want out of the retirement years.
Big house and lots of cars and holidays would need a fair amount of money.
A small cottage in a cheap economy with just one vehicle would not need much money to maintain.
Big house and lots of cars and holidays would need a fair amount of money.
A small cottage in a cheap economy with just one vehicle would not need much money to maintain.
I’m 38 £500k would see me retire. We just don’t spend a lot and never have. No kids either so don’t have to leave this planet with anything left behind so can sell/equity release house later in life as well and live off that. Depends what you used to I suppose once mortgage is paid off £1-1.5k a month is very easy to live off.
Magooagain said:
I think that before anyone thinks of a figure for retirement the first question is what you want out of the retirement years.
Big house and lots of cars and holidays would need a fair amount of money.
A small cottage in a cheap economy with just one vehicle would not need much money to maintain.
One of the things that I've had on in the background whilst working from home is a lot of those "escape to the sun" type programs.Big house and lots of cars and holidays would need a fair amount of money.
A small cottage in a cheap economy with just one vehicle would not need much money to maintain.
I appreciate they're a 30-60 minute edited glimpse into a "dream" lifestyle for those involved but It's floored me how easy it looks to p
s off to somewhere like Spain or Portugal and grab a place somewhere nice and sunny for naff all and just live a comfortable frugal lifestyle.I'm not that into the big house and lots of cars thing anyway but it certainly makes you pause for thought on how much is actually "enough".
One of the problems in working out how much you need is estimating the rate of inflation. I think I am correct in saying that it is never been as low as it is now, is it going to be at the same rate in 2030 when your income is still fixed and your interest rate on savings hasn't moved from the current ~ 0.50%
Edited by Robbo 27 on Friday 8th May 11:50
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