3 simple steps to an early retirement
Whether you want to spend your retirement traveling the world or simply kicking back with the family, an early retirement might not be completely out of reach, especially if you follow these steps.
1. Know your numbers
At the moment, you can access your private pension savings at the age of 55, however this will continue to rise until it is in line with the state pension age of 65. Bear in mind that if you are between the age of 23-35, pensions won’t be available until you are 59, so it may be a little harder to retire early.
if this isn’t early enough to fit in with your plans, you will need to have some financial supplies to survive on between stopping working and starting your retirement. Perhaps by using other tax-efficient savings such as ISAs.
2. Don’t delay
Pay into your pension as early as you can is the key to building up the savings that will allow you to retire early. The earlier you start, the less it will cost you as your money will have more time to grow into a sizeable amount.
If you have a company pension, make sure you’re putting in the cash as your employer may also make contributions if you are seen saving towards your own pension fund.
3. Consider portfolio retirement
Whilst an early retirement is a nice idea, it’s important to be realistic and understand that you may need to work part-time to have the funds needed for a comfortable retirement. Research suggests that more than 60% of employed people aged between 65 and 69 are in part-time employment.
Government statistics also show a rise in self-employed older people, which would be a healthy compromise as it offers flexible working hours and secures a more financially stable retirement.
