The age to start receiving age pension in the UK is now 66, and there is no longer a forced retirement. So, you can get your pension once you reach that age and continue working if you want to. However, if you are dreaming of early retirement, you would need discipline and hard work. Unless you are incredibly wealthy and have a steady flow of passive income that would let you live comfortably, it wouldn’t be a walk in the park. Unfortunately, there are only a few people who have this luxury. But it doesn’t mean that you cannot retire early if you are not that rich. Here are some tips to achieve your dream of early retirement.
Estimate your expenses when you retire
List potential expenses that you will have on your retirement. Start with the most important ones, like food, utility bills, and housing. You cannot cross out these incurring costs from your budget since they are essential for daily life. Include other expenses that you may also incur, such as entertainment, travel, or whatever your interests are. Once you know how much you will spend, you can calculate how much you need to save to cover your expenses from your projected retirement date and onwards.
Get help from a financial advisor
If you are having trouble doing the step above, a financial advisor can help project how much you would need for your early retirement and find ways to make it happen. It’s best to choose an advisor specialising in retirement and pension advice Kent if you live in this county. You can quickly meet with the specialist face to face and have a feel if you will be a good fit. You need someone you can trust, so you can work side by side with your financial management for the years to come. Your advisor can propose investment opportunities to help you retire early and ensure you will not have trouble with your finances.
Cut on your current expenses
You may need to sacrifice your budget at the moment to enjoy an early retirement. Cutting your expenses will help you save more for the funds you need for that goal. List your expenses, and see where you can save. It doesn’t mean depriving yourself but prioritising your needs over your wants. Of course, you would still need to reward yourself from time to time. Other ways to save money are lowering your power consumption, cancelling subscriptions you don’t need, and eating home-cooked meals.
Look for extra income
Finding an extra job to earn more or investing in stocks, new business, or rental property will help increase your savings, getting you closer to your dream of early retirement. Again, a financial planner can help determine the best investments to make.
Besides the tips above, prioritise paying off all your debts before you reach your target retirement age, so you don’t have to worry about them. With that, you can just focus on enjoying the things you love when you retire.
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