People who think you need £Xm to secure an income for life clearly aren’t familiar with compound interest, investing and safe withdrawal rates
I’m 34, lets say that to stop working I want to draw £40k per year (as people have said above not working would dramatically increase my holiday budget). That £40k needs to go up with inflation (let’s call that 2% per year) and last until I’m 90 (while my cost of holidays may go down with age the potential cost of care will go up).
My initial investment will be growing at, say, 2% after tax.
I then plugged this all into excel and I would need £2.24m today leaving £0 when I get to 90.
If on the other hand I only want to have £15k/yr with the same parameters as above I merely need £840k.
In reality I would like to continue working part time/ doing more charity work rather than stopping altogether, but the above gives an idea of just how much money a 35 year old would need to stop work.
Obviously I’ve ignored the small issue of buying a house and at £40k/yr I assume that I could buy cars/ bikes from income,