How much money can you retire with?

When employees reach retirement age, they can stop working. Most people do not want to wait for this and want to stop working sooner. How much money do you need to stop working? The costs of living are so high that a monthly income is required. Bridging a period of several years with assets is a very expensive affair. Someone who is now 35 years old and owns one million euros cannot retire with such an amount. It must remain possible to survive on part of the money plus the interest income for the next thirty years. Assuming an interest rate of 2.5 percent, you will receive 25,000 annually (assuming 1,000,000). You still have to pay tax on your assets in box three. You may be able to settle for 25,000 now (ignoring tax), but in ten or twenty years this amount will no longer be sufficient for you. Due to inflation you can buy less and less for one euro.

From what age can I retire?

To start retiring at a young age, you need a substantial capital of several million euros. From the moment an employee is a few years before the retirement date, there are options with smaller amounts. The amount of capital required depends on the number of years you still have to bridge, the return on the amount and the money you need per year. In addition, you must also take into account the fact that you will not accrue a pension in the relevant years. As a result, the pension benefit will be lower.

How much capital is sufficient to retire?

For a person over 60, a power of between 75,000 and 250,000 will be sufficient to take it easy. A 50-year-old still has 15 years or more to reach retirement. An amount between 750,000 and 900,000 would be quite close. Every year the rentier can withdraw part of the money and for the rest he has to live on the interest income. A 30 year old will need at least 2,500,000. The amount of capital required is highly dependent on the spending pattern.

Take capital gains tax into account

On the assets in box three, you must pay 1.2 percent on the amount above the exemption of approximately 21,000. So, as it were, 1.2 percent of the return must be reserved for taxation.

How much money makes you happy?

CNN Money has conducted research among American experts into the question of how much money makes you rich. This concerns the question of when someone feels rich. This showed that an amount between 1.5 million and 9 million is required for this. According to these experts, with this amount it should be possible to have a carefree life without having to work for money.

Live carefree

According to the research, someone aged 35 who no longer works and wants to live a very large life needs 9 million. This amounts to approximately an annual amount of 225,000 to be spent. The money must be invested with an annual return of 5 percent. A slightly more frugal life is also possible for an amount of 3 million. This results in an annual income of 75,000.