I haven't calculated the specific amount yet, since my currently variable and unknown income makes it hard to estimate how many years I'll need to fund. Still:
I'm in the north, so I expect that when I'm ready, I should be able to get a house in a not-terrible area for somewhere between £100,000 and £300,000. Maybe £400,000 if I'm really being picky.
Right now, my yearly costs are below £5000, but the bills are pretty much being subsidised by my parents. Still, I'm pretty sure that even living on my own, I'd be able to keep costs below £10000 (ignoring inflation). Ideally, I'd like to keep them even lower than this, but I'll use £10000 as the figure.
I'm 24. Let's be incredibly optimistic and assume I live to 100, because that way I'll have calculated for too much money, rather than too little. Also, I'm ignoring the state pension, because who knows if that'll still exist when I'm old.
Withdrawal Rate | Base Stache Size | With £100,000 house | With £400,000 house |
4% at £10,000 a year | £250,000 | £350,000 | £650,000 |
3% | £333,333.33 | £433,333.33 | £733,333.33 |
2% | £500,000 | £600,000 | £900,000 |
1% | £1,000,000 | £1,100,000 | £1,400,000 |
4% at £8,000 a year | £200,000 | £300,000 | £600,000 |
3% | £266,666.67 | £366,666.67 | £666,666.67 |
4% at £7,000 a year | £175,000 | £275,000 | £575,000 |
3% | £233,333.33 | £333,333.33 | £633,333.33 |
I'm probably going to aim for one of the lower values in this table, because I don't really want to work for long enough to earn the higher values, to be honest, even self-employed. Unless, of course, I have a great entrepreneurial idea or write a bestselling novel and somehow increase my earnings by a lot.