All the time. It’s on the news. All the time. “Pensions Timebomb!”. Do yo know who listens? Nobody.
Talk to a millennial about a pension and watch their eyes roll at you. Mention a pension to a tired and stressed worker and they will “get around to it”.
The media are selling it all wrong. Tell the people. Tell the people they need “Fuck You Money”. It goes by many names, Early Retirement, Financial Independence or Financial Freedom for starts but I’ve always preferred Fuck You Money. The average person lives 5 years fun, 15-20 years school or college and then 40 working through stress, boredom, anxiety and life sucking commutes in shite weather and then hopes that when the 67 birthday rocks around that the state will provide a few bob for them to live off or hope there is a nice stash in their pension fund.
Fuck You Money is the amount you would need to be able to own your own time and freedom without requiring employment. Thus, having the ability to tell anyone to fuck off ,even your employer and not giving a shit. You might be thinking you need millions but the real number is probably a lot smaller than you think. One simple method of calculating is the 4% Rule. A version would be something along the lines of – take what you spend a year now, multiply by 25 and you have the number you need to accumulate which would in theory generate 4% returns that you could live off.
Example average Irish worker earns roughly €36,000 according to the CSO. After taxes they probably live off €25,000 per year. Multiply €25k x 25 =€625,000
In theory, you could withdraw your €25k each year without affecting the lump sum.
Now, plenty of folks will happily argue on the internet about how to calculate Fuck You Money, 4% Rule and inflation and all other nice and important points…but you get the jist.
And even if the calculation is way off, a person with €625k in the bank is going to be in a far better position than the average Irish punter waiting on a state pension.
And oh yeah. Of course you need a fucking pension. It’s a very useful way of reducing your current tax bill.
In future post, I will give you lots of way of building up your Fuck You Money