How to Retire Early
Have you ever wondered what it would be like to retire early or are you a workaholic who wants to retire late in life?
Either way, you need money for retirement and the earlier you start saving, the younger you can retire in life.
Top Tips for Retiring Early
- Start an investment portfolio early rather than buy a house
- Rent instead of purchasing a house
- Think of a cheaper place to retire, whether home or abroad
- Move from a high income, high tax country to a low income, low tax country
- Start a pension plan earlier in life and save more than you usually would by cutting back your costs
- Save substantially more than you would normally over a 15 year period
- If you have a credit card, pay off all the debt today
- Start a direct debit for your credit card
- Avoid big ticket items in life
- Buy a 2nd hand car rather than a new car
- Spend frugally
- Reduce your household spending
- Optimise your tax position
- Let compound interest and compound growth work its magic
- Take advanatage of dollar cost averaging
- Set up an expat retirement plan
- Speak with a financial adviser to plan more efficiently
F.I.R.E. (Financial Independence Retire Early)
Recent studies suggest that over half of millennials do not see themselves as ’emotionally and behaviourally’ connected to their job and company.
Exhausted from high-pressure jobs and with a growing sense of burnout, some millennials are following a personal finance strategy that allows them to quit the day job and retire decades early.
Watch the video below.
How to Live on a State Pension
At the other end of the spectrum are pensionsers who live off the state pension.
People over 75 are on average £112 worse off than adults of a working age.
The full rate of the new State Pension will be £179.60 per week (in 2021/22), but what you will get could be more or less, depending on your National Insurance (NI) record.
You can check your how much State Pension you could get on the government website or, you can request a paper statement if you prefer.
It is important to set up a private retirement plan to top up your state pension.
Watch the video below.
UK State Pension Triple Lock in Review in Autumn
In order to retire earlier and move abroad, you need to plan carefully. It is important to speak to a financial adviser to start up the right financial plan which suits you.
Contact a financial adviser and start your retirement plan today.
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