Can you retire early or do you even want to retire early? The surprising answer to this question is that many people do not want to retire early for many different reasons. Some would not know what to do with themselves. Others did not start saving soon enough and do not have enough money set aside for retirement. And many more are facing mounting expenses for health issues. They may need money for supporting their kids or mortgages that they never paid off. Regardless of whatever your situation is, we think that planning for an early retirement is always a plus. You can still work as long as you want for whatever reason, but at least you have the flexibility to make your own decision about when you retire.
Can you retire early?
Have your financial planner asess your financial situation, taking into account your age, your savings, your debt and your plans for retirement. Consider this a first draft. It is ok to change it as you go. You will probably make changes anyway as you near retirement. The important thing is to have a plan and to know when it might be feasible to retire.
Let’s assume that you will have paid off your home, you will have a pension at 55 and you have sufficient savings to live the lifestyle that you want for retirement. You also have your health and this really represents the ideal situation. If you decide to work longer you have the confidence of knowing that you have sufficient income when you do decide to retire. If a health issue gets in the way, at least you will be comfortable.
On the other hand if any of these assumptions are not correct you may find that you will have to work until you are older before you can comfortably retire unless you take some steps to correct whatever the issue may be. Completing the financial plan and asking yourself Can you retire early will put you on the road to ensuring that your retirement is what you had envisaged.
Some people do not want to know the answer to the question, Can you retire early, however asking and answering the tough questions can always help you plan for the future.