How Much do You Need to Retire in 2024? (Less than you think)

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[Brodin-idre]

My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

[Rt-hrnd]

Great video, although I'm not sure I would've used the names Fred and Rosie in the example case....💀

[willtang]

Hi James, as an actuary I find your videos very informative and packed with relatively complicated ALM concepts in a simple way to the general public who are not familiar with the amount of assets they will need to retire. Kudos to you!

[JamesShack]

What are the big unknowns that make retirement planning hard for you?

[chrisharris]

Shout out for James’s financial planning spreadsheet, I find it extremely useful for planning my retirement. I only got into this stuff seriously when I hit 40 (42 now) but as I’ve never previously wasted too much money with a bit of focus and tweaking things each year I should be able to retire if I want to at a decent age. Many thanks for the great content

[Blitcliffe]

This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $460k outside funds in my IRA to invest in stocks. Pls how do I take advantage of the market turnaround?

[inatehex]

Fred and Rosie won’t need to worry about retirement once the police start digging up their patio 😮

[bobb]

People do not know how these options can make such a big difference. Great job getting people to think about options.

[johndoyle]

Thanks, makes me feel better about my personal situation. Fear of running out, unknown health problems, inflation etc.
I have been far too conservative, but as I age I am more confident and am spending more, including just paid £15k for a private medical problem to avoid a 2 year NHS waiting list.

[theonlywoodyshoes]

I began saving for my pension age 18 - company scheme. Along the way I hit higher tax, so added to my company pension with a SIPP (tax benefits). There are a few new cars I didn’t drive, a few mega holidays I didn’t take, and a 3 bed house was more than big enough for our family of 4 - especially as both kids have now left home.

I was able to retire age 56, my choice with no underlying health or other reasons needing to do so. Just pi$$ed off with micro management and lack of trust from my corporate management. They initially replaced me with 2 graduate entrants, then added a 3rd to cover my previous workload.

I’ve just turned 60 and feel so much fitter and less stressed, I volunteer and spend my time helping others, plus doing DIY jobs around our home that I was paying others to do when working.

If you love what you do, especially if working for yourself, that’s fine. If you can’t see yourself running on the corporate treadmill for years into the future - DON’T!

[guilainlepiouffle]

Honestly these videos are literally of public interest. Great work

[ChrisShawUK]

Excellent strategies James. What I do is use my current projected non-discretionary spend into a lump sum and then the difference between that and my portfolio represents my current max discretionary pot for my lifetime. I then vary what I take out of this each year. This makes it easy to row back one year if things look uncertain (2022 is a good example where my discretionary spend has been very close to zero)

[Santoshlv]

We need to distinguish between "retiring" and financial independence. If you "may" need to go back to work, sell the house or get side gig, you're not FI. If you are still subject to "trading your time for money", you're still not in FI Nirvana. Going back to work full or part is still subject to someone wanting to employ you which brings its own uncertainties. This is why the 4% rule survives as its the "acid test" and I think it's an excellent benchmark to aim for. I use it to stress test my portfolio and it seems to work. Keep in mind the 4% rule means that with that "massive pot" you'll actually die with that pot still intact! So it's a safe, conservative overestimate. Personally, I don't want to leave anything behind so I'll need less than the 4% rule predicts. I'm probably somewhere between 5-6% or more.
Good video as always to "keep us on our toes"

[spivvo]

Good advice. The main problem is that people leave it so late to start addressing this stuff instead of beginnig to accumulated capital in their 20s onwards. I thank the school teacher that talked about the burden of his mortgage, thanks to him I made sure I had paid off both my mortgages by 40 and meanwhile my whole life has been focused on accumulating wealth whereas for most people it is something they rarely think about and then when they come into a lump sum they spend it on a car or something equally stupid. I’ve also noticed that ironically those in the best position to do this (I worked in the city) often seem least able to step off the gravy train. Retirement is great, I walked away from a massive income and I’ve not regretted it once…. I also calculated that I save £15, 000 gross income a year just by not having to go to work. Subscribed.

[ryandaley]

Thank you. Just what I needed to watch.
My hubby and I are directors of our farm business and own
property, plus small pensions. I am nearly 52, hubby is 55.
We have started to save to
retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.

[keepcalmprepon]

How much you need to retire depends on a number of factors, with the most expensive being the roof over your head. If you own your home and have reasonable property taxes, you can retire with a lot less than someone who still has a decade or more on their mortgage, or is renting. Keeping day-to-day expenses reasonable (utilities, etc.) is fairly straight-forward, adjusting expectations for your vehicle(s) also can lower your monthly costs. Retiring with an understanding of the changes in lifestyle and how you'll keep those changes minimal, are the best way to figure out what you will need - there is no specific formula, you need what you need, but if you plan accordingly, you'll enjoy your retirement way more than if you just hope for the best.

[richardharnwell]

Thanks for another great video. Something that I’ve not seen any videos on, and I think would be useful to a lot of people, is what are the options for drawing down? In particular, taking money from cash vs alternatives, and taking a lump sum annually vs monthly. I’m sure there are loads of other considerations too!

[barryyoung]

This channel should be considered a public service !! Brilliant

[shellylofgren]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways

[jassonsw]

You can also move to a country with a lower cost of living. Although you have to consider whether medical services are as good and if not the cost of private medical care when needed. Which as you get older becomes more and more relevant.