IN THE BACK
QUESTION 2
How much money will you need at the date you retire ?
The date I refer to is when you stop earning and start spending your retirement pot . This question is a lot easier to answer once you have your average monthly ( or annual ) cash-burn number . For example , if you know you plan to spend around £ 3,500 per month – or £ 42,000 a year – after tax , you can start to model your plan . People in their 50s are likely to live until their late 80s , so I always use 89 as my “ drop-dead date ”.
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