Retiring

The simple answer to the OP's question 'how much do you need to retire?' is 25x your annual spending.

If you want to spend £25k pa in retirement (and we're ignoring the state pension), you'll need around £625k. £1m invested will support a £40k pa lifestyle more or less indefinitely.
 
Blue Maverick said:
This is exactly what it’s about, don’t work to the grave, I’m currently in dispute with the wife I want to get a camper van next year and when my daughter is off school take her round Europe, she’s moaning because she’s still working full time and will be for years but no way I’m sitting at home wasting away.
Click to expand...
When I went part-time I advised my wife to carry on full time to get her pension up to mine.
had two years bliss following City away in Europe and mid week games, as well as a quiet home most of the time.
 
Manchester33 said:
The simple answer to the OP's question 'how much do you need to retire?' is 25x your annual spending.

If you want to spend £25k pa in retirement (and we're ignoring the state pension), you'll need around £625k. £1m invested will support a £40k pa lifestyle more or less indefinitely.
Click to expand...
Interesting rule of thumb that - thanks.

Just to clarify, when you say "ignoring the state pension", not sure what you mean. Do you mean £625k would get you £25k pa, and on top of that you could get your state pension as well? Or you could get £25k including your state pension, i.e. £15,890 plus £9,110 state pension = £25,000.

And presumably you mean £25k gross? Because it would still be subject to income tax of course.
 
Chippy_boy said:
Interesting rule of thumb that - thanks.

Just to clarify, when you say "ignoring the state pension", not sure what you mean. Do you mean £625k would get you £25k pa, and on top of that you could get your state pension as well? Or you could get £25k including your state pension, i.e. £15,890 plus £9,110 state pension = £25,000.

And presumably you mean £25k gross? Because it would still be subject to income tax of course.
Click to expand...
Yes, using the 4% rule, investments of £625k could support £25k of annual withdrawals indefinitely whilst simultaneously covering inflation. This does not include the state pension and is subject to income tax.
 
Manchester33 said:
Yes, using the 4% rule, investments of £625k could support £25k of annual withdrawals indefinitely whilst simultaneously covering inflation. This does not include the state pension and is subject to income tax.
Click to expand...
Even with the current pitiful levels of base rates and worldwide GDP output looking sluggish (or negative) due to COVID? I'd be bloody delighted with 4% return on capital right now.
 
I finished at the end of March and I'm certainly fitter now than i was when I was sat at a laptop all day

I do wish COVID-19 would fuck off however as I'm getting a little bored and it really cramps your style being locked down when you could be out visiting places ;-)
 
I took early retirement almost four years ago and don't miss the travel, long hours and shift work. I do miss the banter though. My navy pension isn't large but with no mortgage it pays my utility bills, food and a small weekly amount if I fancy a pint. I use my savings for holidays and any other expenditure. When I eventually get my state pension I'll feel like a bloody lottery winner with the extra cash lol.

Like others I wish there was a decent investment for my savings but it's dire everywhere.
 
@Chippy_boy & @denislawsbackheel

Here's a good chart created by Wade Pfau which shows the 4% rule is basically a worst-case scenario for the 65 years that were covered in the trinity study.

Remember that this covered a time period that includes the Great Depression, World War 2, The Cold War, The assassination of JFK and various other huge events in stock market history. To claim the 4% rule is no longer valid is baseless and quite unoptimistic.

There's always a risk the stock market could completely drop through the floor, but if you were sensibly invested, you'd carry a lot more bonds (rather than stocks) in retirement so you'd be more secure.
 

Attachments

  • 1601630973218.png
    1601630973218.png
    256.4 KB · Views: 16
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
✖
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.