Read a very good article at http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/. Nobody likes to work forever. As you are reading the article, ask yourself, when do you want to retire, when do you want to have to choice of retirement. In fact, the time taken to reach retirement only depends on ONE factor:
Your SAVINGS rate as a percent of your pay. Or, if you look at the reverse, how much you need to live on and spend.
Assuming a 5% inflation adjusted investment returns during the accumulation stage and 4% withdrawal rate for expenses after retirement.
| Savings Rate (Percent) | Working Years Until Retirement |
|---|---|
| 5 | 66 |
| 10 | 51 |
| 15 | 43 |
| 20 | 37 |
| 25 | 32 |
| 30 | 28 |
| 35 | 25 |
| 40 | 22 |
| 45 | 19 |
| 50 | 17 |
| 55 | 14.5 |
| 60 | 12.5 |
| 65 | 10.5 |
| 70 | 8.5 |
| 75 | 7 |
| 80 | 5.5 |
| 85 | 4 |
| 90 | under 3 |
| 95 | under 2 |
| 100 | Zero |
Retiring early is no longer a dream. You never have to work another day because you need to. Pursue your dreams, do what you want. This is your choice. Start saving and plan for your better future with SkyFP.