How to quit a 9-to-5 life on £400,000

[milanbenes]

http://business.timesonline.co.uk/ar...838030,00.html

Justin Modray at Bestinvest, an independent adviser said: “From our experience, we find that the minimum annual income people require for a modest retirement is about £20,000 a year.”

The good news is that if you would be happy to live off this sum you can manage with savings well below £1m. A 30-year-old wanting to stop work and live off £20,000 a year would need £461,000.

However, if you start squirrelling money away from the age of 20, you would need to save £35,000 a year to build up enough savings, according to Bestinvest.

If you are happy to keep working until 40, the amount you need to save falls to £414,000, which would mean putting away £11,250. And if you can carry on working until you are 50 you would need savings of only £348,000, or £4,400 a year.




Very interesting table on Page 2 too

So there it is folks, the goal posts

Milan.

[WageSlave]

At least those figures are achievable for Joe Average.

[Francko]

Milan, you don't know how boring is to be retired. I know people who would pay to work instead of being retired.

p.s. that is unless you have a high income, therefore rich, and can do whatever you feel like.

p.p.s. you are asking for the bill without an important factor. The children.

[milanbenes]

Franko,

retired doesn't mean you stop working

however it is nice to know, have some guidance of how much
you need to secure what kind of income

Something for you to aim for

Milan.

[Joe Black]

At least those figures are achievable for Joe Average.

For some people in a basic job I think they'd have trouble even with the £4,400 a year, less they forego all worldly goods until the 'retire'.

[IR35 Avoider]

(deleted)

[wendigo100]

Franko,

retired doesn't mean you stop working

Given what this thread is about, what does it mean then?

[milanbenes]

I mean't to say doesn't have to mean

still as I said it is interesting to see these figures

most here must have already or be able to achieve these numbers by 40

Franko typically tried to throw a spanner in the works, and he has a valid point, however if you have this kind of income guaranteed (20k per year)and after tax then you are already on a similar income to a lot of 35k per year IT peops anyway !

and if you achieve the amount required for the 50k per year then you are laughing

Milan.

[Joe Black]

From the article:

"Assumes: Life expectancy 76, annual investment growth after charges of 6%, income rises with inflation at 2.5% a year, annual saving from the age of 20"

Reading between the lines, and after a few quick back of the envelope calculations, the figures seem to be based on the idea that the capital is gradually decreased.

So if you live longer...you're buggered.

[Marcus Aurelius]

From the article:

"Assumes: Life expectancy 76, annual investment growth after charges of 6%, income rises with inflation at 2.5% a year, annual saving from the age of 20"

Reading between the lines, and after a few quick back of the envelope calculations, the figures seem to be based on the idea that the capital is gradually decreased.

So if you live longer...you're buggered.

Nah mate, the state will look after you... It's only fair!