How much do I need to retire with £20k/£30k/£40k/£50k per year? (100-year backtest results)

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How Much Do I Need To Save Tool

Software & Data

Global Equities - Morningstar Global All Cap Target Market Exposure
Global Bonds - Morningstar Global Core Bond

RISK WARNINGS AND DISCLAIMERS

Capital at risk. This video does not constitute personal advice. Past performance is used as a guide only. It is no guarantee of future returns. Prevailing tax rates and reliefs are dependent on individual circumstances and are subject to change. We do not provide tax advice.

Issued on behalf of Nova Wealth. Nova Wealth is a trading name of Octopus Wealth Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 778951) and is a limited company registered in England & Wales (10739796).

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00:00 Intro
01:15 How much do I need to retire?
13:02 How much do I need to save?

[JamesShack]

To be super clear, we're talking about sustainable expenditure here. The software takes care of taxes.

It's assuming you have no other income or capital gains coming in from other sources other than the state pension, as indicated.

[ErinWarner-zcjy]

(NYSE:ARR) is a high-yield mortgage REIT paying monthly dividends. The stock has a dividend yield of about 14%, as of August 14. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[Riggsnic_co]

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

[Jaymilnere]

Loved every second of my watch to the very end. I could really use your help James, I’m 52 and disabled since 2007, still own a small business with $80K in savings. But I'd still love to grow my investments ahead of my retirement.

[robrt]

Another great video James. I'm sure I've told you this before, but you really need to get your videos into schools so that the age group 16/17/18 especially get to see this stuff. (appreciate it's accessible to them through here, but I think giving them a nudge to come look would be highly beneficial)

I'm 34 now and really wish I had this sort of advice when I was 18 and just started working. My pension got fairly neglected into my mid 20's, a large influence on this was poor (nonsense) advice from older relatives stating things like "pensions are a scam" etc.

Videos like this help to illustrate just how easy it actually is to save for a comfortable retirement if you start early.

Thanks

Rob

[markw]

I've been watching for a couple of years now and this is the best video yet.

[JamesShack]

CORRECTION: At 10:00, I said NI for the basic rate tax band is 10%, but as of April 6th 2024, it has been reduced to 8%.

I should really stop filming videos at 10pm at night...apologies for the mistake.

[MamieEvans-dpsc]

I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 30k in crypto and made about $246k, but guess what? I put it all back and traded again and now I am rounding up close to a million.

[jonno]

I have spoken to a couple of financial planners to try and work this out. I dont have the data to work out the numbers, but i thought the concepts were pretty straightforward. Neither of them could answer these questions. Thanks for putting it here.

[GWJUK]

My father told me that your desire to do things changes and to that of a lower spend level! He is 80 this year.

[lemmybongo]

Only after my dear mother passed away and I acted as executor on her estate did I realise how brilliantly she did as a professional woman and the way she looked after her finances over decades. She could easily have afforded to have retired earlier and avoided doing a couple of jobs she did not enjoy, as well as spent some of her money to make her life easier and more enjoyable.

The message here is, if we are going to put all this effort into looking after our future finances we should also make plans on how to enjoy that money when we are older. The goal should be to retire around 55-58 years of age and enjoy our lives, whilst making provisions for our legacy. Be great now and your future you will be grateful!

[hailey]

Great video James, excellent information! I am state-side and sat down last week and did a year by year retirement analysis to age 95, looking at annual inflation, social security income, personal investment returns, along with reducing annual spending as I progress through my 80’s and 90’s with my spouse. I landed exactly where you did with your approach. Thank you for sharing your insights and analysis, much appreciated!

[annawong]

This is the video I've been waiting for! Relatable and concise. Also, thanks so much for the templates, James! Will be sharing this video.

[marks]

I don't think I will ever retire as such, I have 2 businesses and have taken a few months
off in the past but being in contact with people and just doing stuff is really rewarding.
Gotta keep moving 👍

[Fssil]

Hi James, I recently found your channel off of some other financial channels I watch. I am someone (possibly) quite typical in that I am just realising that although I’ve paid into pensions (workplace and private) for some time I may not have been giving it the attention it deserved and at 58 (this year) need to pull the finger out, it’s good to put figures (even if they are ballpark and dependant on returns) to the amounts needed to sustain (in my case) 20 to 30k a year once retirement comes.

[eoinmnvk]

Hi James, TY. I handed my notice in. I retire at 55. Done all your spreadsheets, taken expert advice. I can do it.

[Popeye]

A great video with a lot of insights. For me there is this challenge of save, save save and you end up dying 3 years into retirement (all too common story) The balance of living a life you want to live NOW enjoying the things you appreciate more NOW is key. Obviously I am not advocating splurging all of your cash and having nothing for when you finish work I just think each case is different. You don't want to have nice cars, foreign holidays and expensive things when you are 75 so therefore don't need a large amount of wealth at that age

[Carry]

Thank you for for bring up this video! Recessions are an unavoidable part of the economic cycle; all you can do is prepare for them and plan accordingly. I graduated into a slump (2009). My first job after graduating from college was as an aerial acrobat on cruise ships. Today, I work as a VP for a global corporation, own three rental properties, invest in stocks and businesses, run my own company, and have increased my net worth in the last four years.

[iainh]

Using this video and the provided tool, I feel that I am "on track", at least for now. Thank you James for another great relatable video.

[pataleno]

Time becomes more valuable than money as you get older. So if you’re still Working at 60 and don’t enjoy it. It’s time to make plans.