Early retirement: 7 keys to establishing an infallible plan

Thinking of early retirement? As we grow older, family, retirement, and personal responsibilities increase. In addition, as if that were not enough, the work is burning more and more. In fact, more than half of the workforce say they suffer from job stress. That’s why many workers retire before reaching retirement age . Are you considering it too? We tell you everything you need to know, keep reading retirement services!


What is early retirement?


As you know, the retirement age is rising a little more and more. Although this increase is small from one year to the next, in the long term the changes are noticeable… In fact, it is expected that in 7 years the retirement age will be 67 years and 6 months, 2 years more than in the today. However, there is the possibility of retiring before reaching that age. It is what is known as “early retirement”, and it can be obtained, mainly, due to the employee’s disability, involuntary termination of work or if the worker requests it and meets the requirements . In other words, in reality, almost everyone can opt for early retirement. But beware! You have to prepare for it in advance. Are you thinking of retiring early and don’t know how to do it? Take note retirement services !


Also read: John Labunski Information


The keys to planning your early retirement


1st. Think about your goals after retirement.


There are many ways to live retirement. For some, retiring from working life means leading a more relaxed life, without the need to generate income or carry out any activity. However, there are many who take advantage of this stage of their life to pursue their hobbies, try new activities or travel. There are even those who decide to live their work retirement in the destination of their dreams and move to a new city. Therefore, in order to plan your retirement well, it is essential that you think about what it means to you and how you want to live it. Only then can you take the measures and follow the right plan to make it happen.


2nd. Set a budget to achieve those goals.


As you can imagine, the amount of money needed is not the same in all cases. You will not need the same money if you are going to dedicate yourself to your hobbies, such as, for example, painting, as if you want to travel the world or change cities. Therefore, it is important that, depending on what you have plan to do, set a budget so you know how much you’ll need to save before applying for early retirement


3rd. Calculate your pension.


When setting this budget, you must also take into account the monthly amount of your pension, since that is the only way you will know how much you should save. Early retirement means (almost always) a reduction in the amount of the public pension, so a percentage is subtracted for each quarter not worked. And be careful, this reduction is maintained throughout retirement. What does this mean? Very easy. Every month you will be charged a little less than what you would have if the early withdrawal had not been requested. It is convenient that you calculate your pension, to check if it is profitable to advance your retirement and, if so, to know how much you should save to live well during your retirement. To do this, you can use one of the online simulators that you will find on the website of several banks and Social Security. An easy, fast and effective solution


4th. Save in advance.


This is probably the most important key to any early retirement plan. In many cases, the amount of the public pension is not enough to carry out all the plans that would be desired; and less if we take into account the reduction for requesting retirement early. In this way, to face this situation and be able to live as you have always wanted when you do not have work responsibilities, you will have to save for several years before through funds, savings insurance, etc. It is estimated that the ideal is to calculate, approximately, the expenses of a year and save this amount multiplied by 25. From there, there are those who divide the objective into years, months or even weeks to be able to keep track of progress. Of course, you must be aware that this saving will mean cutting and prioritizing expenses ; But don’t worry! In time you’ll appreciate it!


5th. Pay all your debts.


To make sure you have that amount planned when you retire from the world of work, it is also important that you pay all your debts, loans, etc. In this sense, it is highly recommended that you leave the mortgage paid before you retire, since, otherwise, you may have to use a large part of the monthly pension to pay it. This, although it may seem like a predictable expense, over time can be a great limitation. For this reason, there are those who, from their experience, assure that the best option is to try to leave it paid before retiring retirement services.


6th. Think of a plan B.


Once you have prepared a budget of your annual expenses, you have thought of a savings plan and you have calculated the amount of your pension, nothing should go wrong. But what if it doesn’t go as well as you expected? It is true that having money to meet monthly expenses and a small cushion for other expenses, you will probably not have problems in the future. However, unforeseen events can always arise: a major unexpected expense, an economic crisis that decreases the value of your assets (that is, your goods and properties), a downturn in the economy that gives rise to a loss of your shares in the retirement market… Therefore, to avoid problems in the future, we advise you to think of a plan B, so that the family economy is affected as little as possible if, in the end, for whatever reason,


7th. Ask for help.


As all this depends on many factors, it never hurts to contact a professional. Thus, you will be able to consult all your alternatives and assess which option is the most favorable for you, your well-being and your economy. Planning an effective and profitable early retirement is not easy, but it is not impossible either! You just have to keep these 7 keys in mind retirement services.

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