What Is Early Retirement & How to Plan for It?

source: birchwoodfp

The decision of an individual to retire depends majorly on factors like lifestyle goals, financial capabilities and unfulfilled hobbies. Although the average age to retire in India is around 60, people nowadays are planning for early retirement to meet new opportunities. 

Before finding out the best way to retire early, let’s discuss what early retirement is!

Early retirement is when an individual stops working or quits his/her job before the usual statutory retirement age. For example, retirement in someone’s late 40s can be considered early retirement.

Early retirement is usually planned due to someone's incapability to work further or achieve specific goals. For instance, an individual might go for early retirement to pursue his/her passion for cooking and turn this passion into a source of income. 

However, in some instances, one might not plan for early retirement, and the individual might need more assets to last longer. Thus, every individual, whether or not they want an early retirement, should plan for it to be financially secure.

For private sector employees, the average age range for retirement can be anything between 60 to 65 years. On the other hand, government employees usually retire when they attain 60 years of age. 

It can be considered early retirement if anyone plans to retire before this age. Thus, any age below 60 years can be referred to as early retirement age. Nevertheless, it is ideal to assess your financial responsibilities before deciding your preferred retirement age.

1. Start Planning Early

2. Estimate Your Expenses

3. Make the Right Savings and Investment Plan

4. Actively Manage Your Investment Portfolio

5. Get Health Insurance

An individual will likely encounter more health problems as they grow older. Hence, it is essential to have health insurance to protect you from critical illnesses and medical emergencies during old age.

If you make these small sacrifices to your lifestyle now, you can enjoy a stress-free life post-retirement. However, it is equally important to enjoy your present life to live a fulfilled retired life. Thus, follow these simple, early retirement planning tips to live the golden years of your life peacefully.