Debate on BBC at the moment about retiring with a million pounds.
Some 'financial adviser' bint on there saying you couldn't and it would only last 8 years. What a croc.
Take Mr Average (that I've just invented) who might have a mortgage of between 50k and 150k. Worse case scenario is that he pays of 150k so he has 850k left.
Bills & utilities and general outgoings should be about £1k a month (remember, no mortgage to pay), so Mr Average needs £12k a year.
Let's add a few holidays, special occasions, emergencies and such and give him £20k a year to live on.
Well, put the £850k (the amount that's left after mortgage is paid off) in a semi decent instant access account (3% at the moment) and you'll get a return of £25.5k.
That's £5.5k more than you need every year so you'll be actually saving money AND you'll still have your £850k capital.
Am I going mad or is this woman talking crap?