After consulting financial experts, many UK savers are surprised to find that they may be able to stop working sooner than they originally believed. With a clear view of their present finances and how much income they will require in retirement, some people discover that with the right plans in place, they can start enjoying their new-found freedom sooner. The key to enjoying an early retirement is to achieve financial independence, and in the following sections, we’ll explore some important steps necessary to reach this goal.
Paying off your debts
Instead of prioritising accumulating savings, focus on paying off any debts, as their interest will outstrip any interest earned on the money you save. At least pay the minimum on each one, and prioritise paying off debts with highest interest rates.
Paying off your mortgage
Make overpayments on mortgages when possible. As a result, you’ll them off sooner and pay less overall – just watch out for early repayment penalties.
Working out your retirement income needs
How much money do you need to survive? Calculate the absolute minimum you need to live on per year and consider this your essential requirement. Now, consider the standard of living you would like in retirement and any ambitions you have, along with how much they will cost. With an idea of the wealth that you require, you can prepare your assets and ensure you can generate enough income for your retirement.
Are you looking for retirement planning specialists in Shropshire or Chester?
If you’d like to assess if you’re on track for an early retirement, at Hartey Wealth Management, we can help. Contact our team today for expert advice.