How much do you have to win on the lottery to retire?

November 13, 2009 by  
Filed under Lottery News

When new lottery winners are interviewed one of the very first things that many of them say is that they are going to retire from work but retiring from work completely can be a costly exercise, even if you do have a bob or two in the bank. So we here at Online Lotto are asking how much do you have to win on the lottery to retire?

Just last Friday night seven lucky IT workers shared half of the five-time rollover EuroMillions jackpot, with each of them walking away with £6.5 million each but would this be enough to retire on? The average man on the street earns approximately £28,000 per year and to get such a return from investments for the rest of your life depends on how old you are, as the older you are the shorter your life expectancy will be.

According to investment specialists Fidelity International, who carried out these calculations for the BBC, if a 21 year old man was to invest a lump sum of £807,245 they would earn the average wage, including estimated inflation, for the remainder of their days but if that man was 40 he would need just £666,076 for the same annual return.

However, even after these calculations there is one other factor to consider. If you were one of the lucky millionaire lottery winners would you be content with an average wage. I think not. If you had millions of pounds to spend there’s a fairly good chance that you would want such things as a new house, a new car, new clothes, and luxury holidays, which are all things that you couldn’t buy before becoming a lottery winner.

So in short, the amount of lottery money required to retire with depends, in a large part, on how much luxury you want.

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