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Early Retirement Financial Planning: Do’s And Don’t

Sammy knew in his 30s, that he has to plan something for his future, once he gets retired. But he always procrastinates. Now he is in his late 40s, the moment has come but he is now overwhelmed and doesn’t know where to start from? Did he make a mistake by starting late? Is this mistake fixable? All his thoughts were killing him until he called his neighbor who retired 3 years ago and lives a very comforting life at the moment. What did tell him? It is all mentioned in this blog.

Why Are People Going For Early Retirement?

Retirement used to entail throwing up your feet at the age of 60. In their late 40s and early 50s, Indians are increasingly willing to take a permanent break from employment.

This shift is being driven by two key factors: millennials adopting the FIRE idea and preferring activities to merely working to the time of death.

The FIRE idea denotes a decision to pursue financial freedom and retire early. This is fuelled by millennials actively seeking work in the industry, as opposed to their forefathers, who have been largely employed in government entities with a set age of retirement. 

Setting up a business or touring across the world has become increasingly popular, and also many Indians are planning on retiring soon so that they may explore their passions more easily.

While saving for retirement necessitates a rigorous approach, early retirement necessitates even more devotion.


1. Begin Creating a Plan.

Budgeting is essential and not only for retirement but also for other objectives. It’s important to maintain proper books of accounts. Create a different space for one-time and ongoing costs. Before that, set aside a small sum for emergency savings. Use it only when required.

2. Expect the Unexpected.

While you can’t predict what life will throw at you, you can prepare for the unpredictable and put yourself in a better position to negotiate with unanticipated costs. These expenditures might include a medical problem, lost income caused by the death of a spouse, or long-term care requirements. Unforeseen costs, particularly medical and long-term care costs, might completely wreck your retirement finances.

Whether you elect to self-insure with retirement investments or take appropriate steps to an insurance plan, planning for the unforeseen can result in positive outcomes in retirement.


1. Don’t put off starting your preparation until it’s too late.

Many people believe that retirement is a long way off, yet time has a way of catching up with us. It is advisable to begin thinking about retirement now, rather than waiting until it is only a few years away. Having a strategy may make a big difference for a successful retirement if you’re in your 20s and 30s and just beginning out in your profession or your 40s and 50s and approaching retirement. Now that you have a strategy in place, you can work on implementing it and revising it as needed.

2. Don’t put your faith in external causes.

If you are banking on things such as consistent investment gains, constant inflation, 100% benefits from your workplace pension scheme, fixed insurance expenses, and that all of your assets would grow in the next few years, we are sorry but a dose of reality is necessary on your behalf. It is strongly advised to reduce reliance on these or any other external and uncontrolled elements that may be proven deadly in the future.


There are various indicators to look for while determining whether or not to retire early. The indicators also refer to a variety of strategies you can undertake right now to boost the likelihood that you will be able to realize your desire if you choose (or need) to. Early retirement necessitates thorough preparation and, most crucially, the appropriate assets. Starting early is critical since it allows you to make modifications in the middle of the process if necessary. Seek expert assistance if necessary to guarantee you are very well on your way to a pleasant retirement life.


How do I prepare myself for early retirement?

Looking at your savings, expenses, and lifestyle that you follow now and will you be able to continue the same or better quality after retiring pretty much answers this. For an early retirement you need to save aggressively. It is basically “work when you're young, relax when you're old”. A financial advisor can help you a lot with this.

Is early retirement worth it?

Well, everything has pros and cons. The pros are that you will have quality time and health benefits. The cons would be your income flow will be slow and only if you have a well-secured money backup the early retirement is made for you.
If you can handle the cons then, it is worth it.

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