The Transamerica Center for Retirement Studies recently conducted a survey of over 4,500 Americans aged 50 and older, finding that the median age at which retirees left the workforce was 62, with 58% retiring before 65. In contrast, those still working expect to retire at a median age of 67, and nearly one in five do not plan to retire at all. However, over half of retirees retired sooner than planned, with 17% doing so because they were financially able. Saving more, spending less, paying off debt, downsizing your home, and living within your retirement means now are steps you can take to retire early.
Saving more can have a significant impact on your retirement, especially if you start early. Maxing out your tax-deferred retirement contributions by contributing as much as you can and increasing contributions each time you get a raise, as well as considering a non-retirement account, can help. Spending less by eliminating non-essential purchases, finding savings opportunities in monthly bills, and paying off high-interest debt is also crucial. Downsizing your home and starting to live within your retirement means early on can also help you financially prepare for retirement.
Retiring early can be achieved by taking proactive steps to improve your financial situation. By saving more, spending less, paying off debt, downsizing your home, and starting to live within your retirement means, you can increase your chances of retiring early and comfortably. It is important to take these steps early on to ensure a stable and enjoyable retirement in the future.