Enough money to retire at 26?

Goldiegirl

I've read some threads in my time..... But this one takes the biscuit.

Living on £7500 a year now would be a rather frugal existence

But I can't believe that the OP genuinely thinks that his £7500 per annum will have the same buying power in 40 years time.

As an illustration, my starting salary at a bank in 1976 was £1074. This was considered a good salary for a 16 year old. Now a new starter would earn around £13000 to £14000. Nobody would be expected to live on a £1000 a year in 2014- it wouldn't be possible. Yet you are saying you'd be able to live on a 2014 income in 2054.

I don't think you've got any idea how inflation works

lardlikesdogs

The op is living in a complete fantasy world, Its clear he/she has made the whole thing up to get attention , Its quite sad and I guess they need medical help.

Craftyblue

Having read through this thread and some of the op's previous threads, I very much doubt that what he's saying is true. However, for anyone that is considering doing this I would have to advise against it.

After leaving university I had a job that I really enjoyed to start with, but once the company was sold and they began changing things and cutting corners it got really stressful, so much so that my blood pressure was through the roof. My doctor suggested I look for a different job, but in the end I handed in my notice and decided to live on my savings for a while. Financially, I was fine. Emotionally, I really suffered. I lost confidence and didn't want to go out. I felt embarrassed when the people in my life asked what I'd been up to and I had nothing to say. Isolating yourself can be very dangerous. When you're an adult it's a lot more difficult to make friends and depriving yourself of the social interaction you get in the work place can be very damaging.
I'm back working full time now and I'm feeling happier in myself (maybe even slightly proud?).

To anyone thinking about doing this, please think long and hard. Going to work isn't just about earning money, it helps to define you and gives you a place in the world.

I've never really written this down, so I hope it helps someone.

System

Goldiegirl wrote: »

I've read some threads in my time..... But this one takes the biscuit.

Living on £7500 a year now would be a rather frugal existence

But I can't believe that the OP genuinely thinks that his £7500 per annum will have the same buying power in 40 years time.

As an illustration, my starting salary at a bank in 1976 was £1074. This was considered a good salary for a 16 year old. Now a new starter would earn around £13000 to £14000. Nobody would be expected to live on a £1000 a year in 2014- it wouldn't be possible. Yet you are saying you'd be able to live on a 2014 income in 2054.

I don't think you've got any idea how inflation works

If you work in a bank, you should know that money in savings gains interest which will cancel out inflation?

System

Julie, thanks, most important post I've read

Goldiegirl

If the OP Is serious, he needs to post on the pension planning board......I would read with much interest the replies he'd get from the posters over there

captainhindsight_2

It depends on the life you want to live, personally I would need a hell of a lot more to live off.

If you think you can be comfortable off 7.5k a year good luck to you.

Have you thought about children, I've herd they can be expensive even if you send them to state school

Goldiegirl

berbastrike wrote: »

If you work in a bank, you should know that money in savings gains interest which will cancel out inflation?

:rotfl::rotfl::rotfl:

It doesn't quite work like that

For one thing, no one has a crystal ball to say what the interest rates and inflation rates will be for the next 40 odd years.

What if the interest rate on your savings is 3% and the inflation rate is 5%.

How will the interest keep up with inflation then?

redcard

berbastrike wrote: »

If you work in a bank, you should know that money in savings gains interest which will sometimes cancel out inflation?

Fixed that for you.

System

Captain, to have kids, first need a girlfriend, chances of that are slim.

Goldiegirl, I posted a graph earlier which showed in the last 25 years, the saving rate was always higher than inflation rate.