Question
“For those of you that came to Spain as early retirees (let’s say, early 50s), what was your approximate net worth when you came and is the math working out?”
Answers
“We retired in our 50s and our net worth was enough that between interest payments and a small pension there was enough to cover our costs and have a little left over for recreation, if we lived simply and didn’t go out to eat every day.
That is the formula. You need to determine how you want to live (how simply) and what your estimated expenses will be. If the sum of those is less than your monthly income, you are good to go.”
“The secret is to stay broadly diversified at low cost in the markets if you have some risk tolerance. Otherwise, park your money in CDs or Money Market Funds (if you don’t have tax-advantaged retirement funds) to at least keep up with inflation with little to no risk.
Also, be sure to have a good emergency fund. Ideally, wait until 70 to collect Social Security. You need 40 more years of assets to live on without working.”
“I ran the numbers using the old 4% rule with two million dollars. The 4% rule suggests you can withdraw 4% of your initial retirement portfolio each year, adjusted for inflation, and expect the money to last about 30 years.
Applying that to $2 million gives $80,000 per year, adjusted for inflation. Early retirement (like at 55) may require a lower withdrawal rate like 3.5%. Market returns, health care costs, and flexibility in spending all affect this.”
“I’m aiming to have 5 years’ retirement expenses in bonds by the time I retire rather than a specific percentage of my portfolio, with the rest in equities. When the market is up, live off stocks. When it’s down, use the bonds. Replenish the bonds when stocks recover.”
“$2000 rent in a major city compared to $709 in a smaller city like Ourense. It all depends.”
“The absolute amount doesn’t matter if you don’t consider where you live. In San Francisco or New York it’s definitely not enough to retire young, unless you own where you live.”
Conclusion
Community members shared a range of responses, from helpful financial strategies to skepticism about sharing personal finances.
The most constructive insights highlighted the importance of understanding your desired lifestyle, calculating expected monthly expenses, and applying financial principles like the 4% rule. Retiring with $2 million, for instance, could provide $80,000 annually under conservative withdrawal assumptions.
Many suggest diversifying investments, holding emergency funds, and planning for at least 30 years of expenses—especially if retiring early. Some cautioned about Spain’s wealth or solidarity tax depending on region and asset size, while others emphasized location-based cost differences within Spain.
Although several commenters were wary of discussing net worth, others provided detailed strategies to help plan a sustainable early retirement when moving to Spain.
Disclaimer
This article is based on a public Facebook group discussion among individuals sharing personal opinions and experiences about moving to Spain. It does not constitute financial, tax, or legal advice. For personalized guidance, consult with a qualified financial advisor, tax professional, or immigration lawyer familiar with Spanish regulations.
