You'll need HOW MUCH to stop working?

RaboDirect reports that it conducted a survey to find out "how financially secure people would need to be to stop work". 

Before reading further, do a back-of-the-envelope calculation to determine how much you think you'd need to retire early. Done? Read on.

Allegedly, the survey found that "Gen Y say they would need $10.7 million to feel financially comfortable enough to stop working", with Australians more generally saying "they felt a minimum windfall of $6.9 million would mean early retirement". 

These findings, to my mind, are questionable at best.)

Consider: $6.9m at a 5% return would yield $345,000 per annum. That's more than most people earn and would need. $10.7m? That's $535,000.

Nevertheless, it's an interesting question. And given that most of us expect to quit working at some point of our lives (some of us aiming to do so sooner than later), it's one worth asking. 


Sonnie Bailey

Sonnie is the founder and principal of Fairhaven Wealth.

Before founding Fairhaven Wealth, Sonnie worked in the legal and financial services industries for over a decade.

Sonnie first became involved with financial advice as a specialist financial services lawyer. For many years, he was an “adviser of advisers”, reviewing thousands of advice files prepared by hundreds of financial advisers, and providing feedback in relation to the quality and appropriateness of advice; industry best practice; risk management; and regulatory compliance. He has published work in industry publications and spoken at various financial advice conferences.

Sonnie has also worked with banks, investment management firms, insurers, and derivatives providers.

Sonnie has worked as a private client lawyer, focusing on succession, estate planning and trusts. He ran his own legal firm in Australia before relocating to New Zealand. He has also acted in independent trustee and company director positions.

Sonnie is passionate about helping people achieve their goals and manage the risks to which they are exposed.

He has written extensively on his blog, New Zealand Wealth and Risk, which can be found at

Sonnie is married to his wonderful wife Chrissy, and has two young children, Ben and Anna.