The Retirement Newsletter: Money — how much do I need to retire?

Issue Number: -127 — how much do I need?

Photo by Zac Durant on Unsplash

Welcome

Last week (Issue: -128 — When should I retire?) I wrote about how I came up with my retirement date. As I said in that issue, there are several ways you can come up with a date, one of which is money, and in this issue, we will start to look at money.

Money

OK, first off, I am not a financial advisor. I am writing about what I have read over the years about money and preparing to retire. This is not financial advice.

How much do you need to retire?

An interesting question?

Well, we need to establish how much money you need per year, and this can be determined by the level of retirement you desire which can be viewed as follows:

• Essential — what is the minimum amount you need to survive? To live? To get by? Admittedly, not the most comfortable way to be retired, but you can at least be retired and have some freedom, albeit limited by money. Being retired at this level can be tough and you might have to top up your pension income with a part-time job.
• Moderate — a comfortable retirement. A retirement where you are not overly limited…