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How Wealthy Do You Need To Be To Retire At 50?

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If I could live on £20k PA tax free, how wealthy would I need to be to retire at 50?

Any ways to work this out?

There is a rule of thumb that goes along the lines of 20 times the amount you need at retirement. So to get £20k per annum you need a combined Pension/stocks/savings amount of £400k.

however this rule is based on someone retiring at 60-65 I think.

Likewise I hear that in recent years this rule has changed to 30 times, ie to get £20k per annum at 60-65 you need £600k saved.

These are rough riles of thumb but I think to retire at 50 you would need approx a minimum of £600k-£800k to retire for the rest of your life.

How things have changed from the final salary retires of the 80s and 90s.

Personally I would save as much as I could then country/currency arbitrage and move somewhere cheap like Malaysia tp retire.

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If I could live on £20k PA tax free, how wealthy would I need to be to retire at 50?

Any ways to work this out?

+£500k would be a reasonable number. I am also looking to retire at 50 too - for me, back of the fag packet numbers:

6 x £85k (todays price) 3 bed terraced houses (the type of properties I hold) = £510k

Income (after bills, insurance, etc.) = approx. £425/pm = ~ £30k

5% voids - this is my experience = £29k annual income

Deduct one large cost item/year (?£2k) = £27k/year

After 20% Tax = approx. £21k/year net.

The properties in my town will hopefully be down to £70k-£75k at the end of the year, and I plan to buy another handful then.

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Hmmm. £20K p.a. tax free. Well pensions are taxable, so you'd need to consider that. And you've added no suggestions as to where or how you'd put a roof over your head.

Care to elaborate - 'cos it's a point well worth thrashing out.

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Hmmm. £20K p.a. tax free. Well pensions are taxable, so you'd need to consider that. And you've added no suggestions as to where or how you'd put a roof over your head.

Care to elaborate - 'cos it's a point well worth thrashing out.

OK say £20k PA after tax, and assume own home outright

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OK say £20k PA after tax, and assume own home outright

Well those above quotes of £600K are slightly under. I've just check my own pension plan and correlated.

So what I'm giving you is real life example. I've got a figure for £20K p.a. recurring for 65 years retirement.

Finger in the air ? 900k ---. 1 mil.

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Well those above quotes of £600K are slightly under. I've just check my own pension plan and correlated.

So what I'm giving you is real life example. I've got a figure for £20K p.a. recurring for 65 years retirement.

Finger in the air ? 900k ---. 1 mil.

What about some form of index linking. That would be essential. 20 k would have to rise a lot. I wouldn't fancy trying to live on 20 grand a year in 15 years time (when you'd only be 65, with another average fifteen years of deteriorating health and expensive therapeutic needs to get through).

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I imagine you'd need about £40k or so accounting for inflation.

Probably need £1m+ to be comfortable.

Can't imagine how I'd ever save that amount up - never going to happen. :(

I might have to start teaching guitar in my old age to pay the bills.

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I plan to do just this, and on 60k as a trader, with an annual target of 35% gains, or thereabouts off the top of my head.

I plan to do it at age 28, but thats an aspiration, and requires semi-retirement rather than leaving all the work to the money alone.

You can get a safe 10% from investments (diversity / defensive stocks / cash / bonds / whatever), so 200k answers your question.

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To retire with that money after putting it in a pension you'd also need to be 55. So you'd better look elsewhere unless you could wait 5 years.

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It all depends on how long you're going to live for... obviously!

Satrt smoking, drinking and eating badly and you won't need that much at all (that's what I'm working on :D )

Surely anyones biggest outgoing is the mortgage, so clear that ASAP and you won't need a great deal IMHO, no where near the £20K+ PA being banded about!

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retired at 47 with a million pound pot index linked. Pays out £50K before tax. Not great but better than some i suppose. Had I been able to carry on working would be earning around £150k today so lost out big time. Shite happens. So much for no qualifications and leaving school at 14 :(

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