Early retirement, we are awfully sorry but...

...what we have heard about the 4% rule doesn't work anymore. Another way of seeing the 4% rule is "you can retire when you save 25 times your annual expenses" (link). For instance, if you think you need 4000 USD (or euros or pounds...) a month, you need 1.2M USD.

However, according to our updated simulations, the number is not 25x but 55x. We know, much worse. For instance, in the previous case we would need 2.6M USD.

Early retirement is a fair dream, however we cannot wishful think and fool ourselves. The amount of money we need if we don't have a pension is much higher than what we have been told. Remember: inflation exists and in the long run it matters a great deal.