Starting a new life by retiring before the legal retirement age often means a sudden drop in your income – and a wait of years before you can claim your retirement pension. It is crucial to estimate accurately the amount you will need to live in order so you can build an appropriate strategy.
Please note: The draft universal pension scheme bill may change these retirement regulations. This content remains valid until the bill becomes law.
Estimate your needs before you stop working
What will be your family situation, and the needs of your children or parents, at the time you change your life? Will you own your main residence or will you have to pay rent? What will your new life project require? What will your everyday lifestyle be like? What will be your tax burden? What about debts? Answering all these questions and considering every scenario will allow you to estimate your needs when you start your new life.
Calculate how many years you will need to finance before you receive your pension, and during your retirement
Depending on the age at which you plan to change your life and retire, the lifestyle you need and the level of risk you are willing to take, the savings you need will vary. In fact, the earlier you retire, the more capital you will need to live on because it will have to cover a larger number of years.
What capital do I need to live without working ?
It all depends on whether you intend to consume your capital or generate income from it.
The following simulations do not take into account either taxation or inflation.
| Your capital invested at | For 10 years | For 15 years | For 20 years | For 25 years |
|---|---|---|---|---|
| 2% |
€217,360 |
€310,796 |
€395,348 |
€471,860 |
| 3% | €207,124 |
€289,610 |
€360,622 |
€421,752 |
| 4% | €197,540 |
€270,384 |
€330,044 |
€378,904 |
| 5% | €188,562 |
€252,910 |
€303,050 |
€342,120 |
| 6% | €180,146 |
€237,008 |
€279,162 |
€310,414 |
| Your capital invested at |
2% |
|---|---|
| For 10 years |
€217,360 |
| For 15 years |
€310,796 |
| For 20 years |
€395,348 |
| For 25 years |
€471,860 |
| Your capital invested at | 3% |
| For 10 years |
€207,124 |
| For 15 years |
€289,610 |
| For 20 years |
€360,622 |
| For 25 years |
€421,752 |
| Your capital invested at | 4% |
| For 10 years |
€197,540 |
| For 15 years |
€270,384 |
| For 20 years |
€330,044 |
| For 25 years |
€378,904 |
| Your capital invested at | 5% |
| For 10 years |
€188,562 |
| For 15 years |
€252,910 |
| For 20 years |
€303,050 |
| For 25 years |
€342,120 |
| Your capital invested at | 6% |
| For 10 years |
€180,146 |
| For 15 years |
€237,008 |
| For 20 years |
€279,162 |
| For 25 years | €310,414 |
| Your capital invested at | For 10 years | For 15 years | For 20 years | For 25 years |
|---|---|---|---|---|
| 2% | €300,000 |
€600,000 |
€900,000 |
€1,200,000 |
| 3% | €200,000 |
€400,000 |
€600,000 |
€800,000 |
| 4% | €150,000 |
€300,000 |
€450,000 |
€600,000 |
| 5% | €120,000 |
€240,000 |
€360,000 |
€480,000 |
| 6% | €100,000 |
€200,000 |
€300,000 |
€400,000 |
| Your capital invested at | 2% |
|---|---|
| For 10 years |
€300,000 |
| For 15 years |
€600,000 |
| For 20 years |
€900,000 |
| For 25 years |
€1,200,000 |
| Your capital invested at | 3% |
| For 10 years |
€200,000 |
| For 15 years |
€400,000 |
| For 20 years |
€600,000 |
| For 25 years |
€800,000 |
| Your capital invested at | 4% |
| For 10 years |
€150,000 |
| For 15 years |
€300,000 |
| For 20 years |
€450,000 |
| For 25 years |
€600,000 |
| Your capital invested at | 5% |
| For 10 years |
€120,000 |
| For 15 years |
€240,000 |
| For 20 years |
€360,000 |
| For 25 years |
€480,000 |
| Your capital invested at | 6% |
| For 10 years |
€100,000 |
| For 15 years |
€200,000 |
| For 20 years |
€300,000 |
| For 25 years | €400,000 |
How much do I need to save to raise this capital ?
Building the capital you need requires saving for several years. So it makes sense to start as soon as possible.
The sooner you start saving money, the less hard you will have to save to achieve your goal.
To build up a capital of €100,000, with a 3% return, you would need to set aside €717 per month for ten years. Over 20 years you would only need to save €306 per month.
| Your capital invested at | For 10 years | For 15 years | For 20 years | For 25 years |
|---|---|---|---|---|
| 2% | €754 |
€478 |
€340 |
€258 |
| 3% | €717 |
€442 |
€306 |
€225 |
| 4% | €682 |
€409 |
€275 |
€197 |
| 5% | €648 |
€378 |
€246 |
€171 |
| 6% | €615 |
€349 |
€221 |
€148 |
| 7% | €585 |
€321 |
€197 |
€128 |
| 8% | €555 |
€296 |
€176 |
€110 |
| Your capital invested at | 2% |
|---|---|
| For 10 years |
€754 |
| For 15 years |
€478 |
| For 20 years |
€340 |
| For 25 years |
€258 |
| Your capital invested at | 3% |
| For 10 years |
€717 |
| For 15 years |
€442 |
| For 20 years |
€306 |
| For 25 years |
€225 |
| Your capital invested at | 4% |
| For 10 years |
€682 |
| For 15 years |
€409 |
| For 20 years |
€275 |
| For 25 years |
€197 |
| Your capital invested at | 5% |
| For 10 years |
€648 |
| For 15 years |
€378 |
| For 20 years |
€246 |
| For 25 years |
€171 |
| Your capital invested at | 6% |
| For 10 years |
€615 |
| For 15 years |
€349 |
| For 20 years |
€221 |
| For 25 years |
€148 |
| Your capital invested at | 7% |
| For 10 years |
€585 |
| For 15 years |
€321 |
| For 20 years |
€197 |
| For 25 years |
€128 |
| Your capital invested at | 8% |
| For 10 years |
€555 |
| For 15 years |
€296 |
| For 20 years |
€176 |
| For 25 years | €110 |
These simulations do not take taxation into account. The tax exposure of your investments will differ according to the methods you choose.
All calculations were made using our savings simulator, which allows you to test various possible options.
Contact an adviser now to prepare your plans
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