How much do I need to Retire? That is undoubtedly the million-dollar-question (by the time I will retire it would be billion-dollar-question, billion with a B). It is the hottest topic in personal finance blogs these days. Yet, another way I ask myself this question is, “How little do I need each month to live after I retire?” This slight variation in how I see the issue that changes everything I need to do before I retire. Also, it does also give me much more variate answer than just investing up in mutual funds. 🙂
If you have recently visited any news article with young couples, or individuals claiming early retirement, and are not sure how do they do that, read the above statement again.
Still, if it does not make sense, let us get into details,
“Earlier (or at least for the previous generation), retiring at the age of 60 ( or else what government norms were set for) was considered a reasonable statement. This didn’t come from a financial standpoint but from the health perspective. Retirement was not defined by how much you needed, but could you work any longer. People were easily able to save enough by that age, and the only reason to retire for them was to look after their health.”
But not now. People have been going out for retirement at much younger ages, say 50-45 or even in their 30’s.