After a consultation with a financial advisor, many Britons who have accumulated wealth while working may find that they start retirement earlier than expected. With an accurate perspective on their finances and the income they will need to afford to retire, some savers find that with suitable plans in position, they can begin enjoying their well-earned free time far sooner. However, to enjoy early retirement, achieving financial independence is first critical. In this blog, we’ll explore some crucial steps required to attain this worthy ambition.
Payment of debts
Rather than making your savings a priority, paying off your accumulated debts firstly is important, as the interest you pay on them will negate any you earn on your savings. Pay off at least the minimum on every debt, but prioritise loans with higher interest rates.
Get mortgage free
Whenever possible, try and make overpayments on your mortgage. While you must be mindful of early repayment costs, the sooner you clear your mortgage, the less you will end up paying overall.
Calculate the income you require
Work out the absolute minimum income you will need for each year of your retirement and then consider what standard of living you desire in retirement. Add on the costs of any personal ambitions you have. Now you understand how much money you will need for your ideal retirement you can start organising your assets to ensure you’re on course.
Are you seeking help with retirement planning in Chester?
To find out if your investments are on track for retirement, contact our dedicated team at Hartey Wealth Management for an expert appraisal.
