Early retirement might sound like a good idea, but you need to ensure that you take the right steps when planning this. If you do not plan your early retirement correctly, you will not be financially secure enough to retire.
Work Out How Much Income You Will Have
When you retire, your income will be more complicated than when you received a salary. To determine what your income will be if you retire early, you need to ask your employer for some information. You need to ask them about the pension that you will get if you retire early. You should also find out about early retirement from any other pensions that you might have such as a personal pension.
Calculate Your Regular Expenditure
How you spend your money will change when you no longer have to go to work every day. You will not have to worry about traveling costs for your daily commute, but your utility bills may increase as you are at home more. It is important that you calculate what your regular expenditure is going to be once you retire to ensure that you have the income to support this. Check out this http://blog.take65.com/planning-early-retirement/ blog to read about early retirement planning.
When looking at this, it is important to consider that you will not be getting any workplace benefits either. This could result in a loss of private health insurance, your company car or other subsidies that you might have been getting. You will need to factor the costs of these items into your regular expenditure as you will now be paying for them.
If you are very serious about early retirement, you need to get some independent advice. Talking to a financial advisor is important as they will be able to assess whether or not you can retire early or help you plan for this.