As you know in Switzerland, the dividends is paid once a year. So our 2015 dividend distribution representing 32’267CHF represent around 30% coverage of our yearly expenses. I excluded from our expenses, the taxes, medical bills, savings. In order to have a better idea, I look at the last 2 year expenses.
I must tell you, that before this post, we did not have any idea of how much our dividends would cover if would retire now. So I am bit disappointed, I had in mind that we were closer to the 40% level.
If I am not taking into our 1st and 2nd pillar (see post Saving %) that will pop-up only when we are 65 years old. We still need an additional 2mio. CHF to cover 90% of our actual expenses. Based on our annual saving rate, that would represent 20 years of hard work. As I am planning to work 10 more year before reaching 50 years old, we would be short of 1 million CHF.
But considering that we will leave Switzerland and go to Brazil to retire and where we have a fully paid apartment (removing 17% of expenses, see Average monthly budget) and where the cost of leaving is lower (with the benefit of the FX), we are fully on track to achieve our goal.
It is clear that we need to continue saving more and more and hoping that the global economy will not put us under a bear market for too long.
What about you?