How much do I need to retire?

I'm retiring with 1 million

Yes, we all want that, I hear you think. That is only for a select group of people. But is this really that much? And perhaps more importantly, is that actually enough to really stop working altogether?

Books have been written about retirement, quitting work now, early retirement, quitting work later, a sabbatical, traveling after your dreams, working less, and so on. All with the best intentions to give you tips and advice and help you achieve your goals. For example, read this book about pension myths.

It actually doesn't matter at all how much money you have, what is much more important is how much money you need per month when you stop working. Today, tomorrow or in 30 years. You can use this to calculate, or at least estimate, how much you need.

You must also take the AOW into account when calculating. Currently this is more than €600 to €700 per month. But it can also be less if you have lived abroad, then you will receive 2% less per year that you did not live in the Netherlands. This amount is quite decent, but of course,

If you think you'll need $1,000 a month when you stop working, you'll only need an extra $300 a month. If you want to have €2000 per month, you need €1300 per month, €15,600 per year. If you get a return of 5%, you need €312,000. That doesn't sound very unreasonable, right?

For this €312,000 you have to put aside €867 per month for 30 years, if you do not make a return. That might be a bit much. But if you average a return of 5% over 30 years, you need to invest less than half! Namely €400 per month and then you even have just a little more!

For convenience, we haven't taken inflation or taxes into account, for example, so you'll need a little more. But this does give a good picture.

So you know what to do. That means starting to save quickly and ensuring that you faithfully put money aside every month. Of course, you have to know how to do this yourself, but we can give you a few tips.

For example, consider a savings account Knab or a investment account from Brand New Day if that suits you.

So start putting money aside today!