September 10, 2019
Submitted by Cassandra Hutton
Of the 74 million baby boomers in America right now, around 10,000 reach retirement age each day. Retirement is, after all, something that many of us look forward to as we get older. While retiring gives us more time to look after our health, it’s also the opportunity to do all the things you’ve been looking forward to. It is a chance to relax, travel or just spend more time with family and friends. But some Americans don’t want to wait until the traditional retirement age. Instead, they plan to retire early and give themselves more time to do the things they love. But how easy is it to retire early and what do seniors need to keep in mind in order to make their early retirement dream a reality?
Regardless of how old you are, if your dream is to retire early, then you need to start saving as early as possible. Regularly putting away a portion of your income towards retirement helps build your good financial security. It’s recommended that people aim to set aside around 15% of their salary each year, including any employer match they receive. If that seems too high, then increase your savings each year until you hit your target savings rate. The key is to ensure you have enough time for your savings to grow.
For many Americans, early retirement is an absolute luxury. So, when you are making your retirement plan, it’s important to be realistic about what it means for you. This could mean you may have to compromise on your retirement goals. Will you want to travel? Have you set aside enough for insurance and any future care needs you may have? Work out a figure that will give you enough money for the retirement lifestyle you want, but is also achievable. There is no point is setting unachievable goals that will just fall flat.
If your goal is to retire early, then you will need to make some sacrifices right now. One of these is to cut your household expenses immediately. This will free up money to help pay off debt or set aside for savings. It also helps you to get used to living on less money, which is particularly significant when you will eventually lose your income.
Other ways you can cut costs are relatively easy. You can get rid of any subscriptions you have but don’t need, stop dining out, cut out expensive entertainment, and look into ways you can save money on your utility bills. If you start being thrifty now, then it will help you adjust to living on a lower income after retirement while also boosting your savings pot.
Early retirement may seem like an impossible dream for many, but with some forward planning, good budgeting and savvy saving, you could be enjoying your retirement earlier than you expect.
Episcopal SeniorLife Communities offers six vibrant senior living communities throughout Monroe County. You’ll find a variety of senior living options and levels of care to help you thrive during your retirement. From supportive places to live to health and wellness activities through our Neighborhood Programs, ESLC is your premier resource for senior living. Contact us today to learn more.