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.