Steps You Can Take To Retire Early
When you think of retiring early, you think of financial freedom and being able to enjoy your life while you are still physically fit without the stress of work. Retiring early is when you retire before the official retirement age. The current retirement age in the UK is 65 for both men and women. If your goal is to retire early, it is important to have a retirement checklist to help determine if you are financially stable enough to retire before the age of 65. However, ensuring you are taking all the necessary steps to reach your financial goals can be difficult, especially if you do not have enough knowledge of pensions and the retirement process, especially what it takes to help you retire early.
This blog covers the steps you can take to retire early to achieve the retirement you have always imagined.
Be clear with the retirement lifestyle you desire
Having a clear direction of what you would like your retirement lifestyle to look like is a great way of knowing how much money you would need and if you need to save more into your pension pot to support the lifestyle you desire. For instance, if you are looking to move abroad, you will need to consider the country’s cost of living and tax considerations so that you can prevent your money from running out and cause unnecessary stress.
As a financial adviser, I am trained to put sensible steps in place to help your retirement dreams become a reality while ensuring the goals are realistic. Having a plan in order helps you make the most out of your life and become more in control of your finances.
Paying off your debts
Retiring with debt is not ideal as the money you owe can reduce your income for your retirement.
If you have a mortgage, making overpayments, if you can afford them, can help you pay off your mortgage sooner, but pay less overall. However, be aware, as some mortgage advisers can charge excessive penalties for early repayment.
With expert knowledge of finance and as a trained financial adviser, it is my responsibility to ensure clients get their finances in shape today and for the future. Managing debt is a key part of how I can help you plan for a stable financial future. Many people are very overwhelmed with debt. A quote from Henry Wheeler Shaw stated, ‘debt is like any other trap, easy enough to get into but hard enough to get out of’. My goal is to ensure that you will not feel trapped while having the retirement you deserve by helping you budget, mapping out your cash flow and identifying any problems to help you fix them.
Enough income for your daily needs
Having enough income for your daily needs is very important as they are the funds you need in order to live your life. If you are looking to retire early, it is crucial that your pension can support you for the rest of your life. Your income needs are likely to decrease as you will not need to pay for any work-related expenses such as travelling or eating out, but you may have other expenses that involve bills, food, and rent/mortgage. However, the cost of living is rising every year and people are living longer, meaning that you may need more. The big question is how do you know you will have enough?
Speaking to a financial adviser like myself will give you an idea of what your income would look like based on your circumstances and savings. If you are struggling to know what pension options to choose then I can provide you with the options that will guarantee income while helping you reach your retirement goals. Due to the cost of living rising, investing wisely is a must as you do not want to run out of money. If your goal is to maximise your assets with minimal risk, book a call with me today.