Savings Rate UK: The Number That Decides When You Retire
Forget your salary. There is one number that decides when you retire, and a teacher on £35k can beat a £85k consultant on it every time. Most people have never calculated theirs.
Years to financial independence by savings rate
Assumes 5% real returns and 4% withdrawal rule, starting from zero. The middle of the curve is where the action is.
Key takeaways
Your savings rate - the percentage of take-home pay you save each month - is the single biggest determinant of when you reach financial independence.
A 50% savings rate means around 17 years to FI. A 25% rate means 32 years. A 10% rate means 51 years.
Income matters far less than people think because higher earners almost always raise spending to match.
Track it as savings divided by net income, review quarterly, and aim for incremental gains rather than radical overhauls.