Early Retirement Planning – What You Need To Know

Retiring early is something many people consider, whilst most people retire between the ages of 60 and 65 and the current younger generation set to retire even later than that, there’s nothing stopping you from retiring when it’s right for you. One of the most important things to consider if you’re looking to retire early, is do you have the finances to do so.

Can You Retire In Your 50s?

The simple answer is Yes. Recent figures from the Office for National Statistics showed that over 50s suffered the highest level of redundancy during the pandemic. Whilst it’s never easy losing a job you love or have become accustomed to, if you have the right plan in place, then you could look to retire rather than seeking further employment.

People in their 50s are still young and have plenty of life left in them, meaning it’s the perfect time to retire. Retiring earlier gives you more time to enjoy the finer things in life. Whether you’re wanting to spend time in the garden or go travelling, retiring early could be the best thing to do. However, if you’re wanting to retire early then you need to have a well thought financial plan in place.

Is There Any Impact of Retiring Early?

If you choose to retire early, it’s important to remember that your state pension won’t be paid out until you reach the age of 67, if you’re currently in your 50s. If you’re older than this, then the timing might differ slightly and if you’re younger than 50 then it might not be paid out until you are 68 or older.

If you are considering retiring early in life, then it’s important you put a retirement plan into place as soon as you can. This will ensure that your private pensions, investments and savings are enough to give you the type of retirement you’re wanting to live. Inflation also needs to be taken into account, if you retire 20 years early, then cost of living will likely go up over that time as well.

As Financial advisors, we can provide advice, guidance and dedicated retirement plans to help you live the life you want to. We have years of experience carrying out retirement planning and we will work closely with you to tailor a plan that works for you.

What You Need To Consider For Early Retirement Plans

If you’re wanting to retire early in life or once you reach your 50s, then there are a number of things you need to ask yourself and consider to ensure you have planned correctly. Some of the main things to consider about early retirement are:

• How long do you estimate you’ll be retired for?
• Can you plan for a varied retirement?
• What will your state pension be?
• How much money do I need to fund my desired lifestyle?
• Do you know what is currently in your private pension plans?
• How long will your current pension plot last?

Planning For Retirement with The Lost Coin Financial Planning

At The Lost Coin Financial Planning, we can help anyone plan for early retirement. We will take into account all of your finances and current pension information, to provide you with the best possible plan for your needs. Whether you’re wanting to retire at 50 or even younger, we’ll help you understand what you need to achieve to do so and how long your retirement pot will last. Contact us today to see how we can help you.

Categorised in: Pensions

This post was written by duodigitaluk@gmail.com