How to retire early

by Hannah from money.co.uk

Action Plan:

Action Plan Resources Q&A Journal Successes Discuss

Action Plan Overview

Preparing your finances is key if you want to retire early & the sooner you get organised the better. We show you exactly what you need to do to plan for a comfortable early retirement.

		a	Find out: When will you be able to claim a state pension?
		b	Find out: When will you be able to claim a company pension?
		c	Work out: When will you be debt free?
		d	Work out: What age can you retire?

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		a	Find out: Do you have a company pension?
		b	Find out: Do you have pensions with previous employers?
		c	Find out: Have you paid Additional Voluntary Contributions (AVCs)?
		d	Find out: Do you have any pension entitlements overseas?
		e	Do: Get a pension forecast
		f	Do: Get a state pension forecast
		g	Work out: What will your pensions be worth when you retire?
		h	Do: Set up a pension plan if you do not have one

		a	Find out: What is your investment portfolio worth?
		b	Find out: How much do you have in savings accounts?
		c	Find out: What is your house worth?
		d	Decide: Do you have any valuable assets you would consider selling?

		a	Find out: How much do you get paid?
		b	Find out: How much do you earn from other jobs?
		c	Find out: How much do you earn in interest or dividends from savings and investments?
		d	Find out: How much do you receive in tax credits or benefits?
		e	Find out: How much do you earn in bonuses?
		f	Find out: How much do you earn from overtime?
		g	Find out: What's your average monthly income?
		h	Consider: How can you earn extra money?
		i	Work out: What's your disposable income?
		j	Decide: Should you put any of your disposable income towards your pension?

		a	Consider: How do you want to spend your retirement?
		b	Work out: How much will you need to live on when you retire?
		c	Work out: How many years of retirement will you need to fund?
		d	Work out: How much will retirement cost you?

		a	Decide: Should you speak to an IFA?
		b	Work out: How much do you need to pay into your pension each month?
		c	Do: Be realistic
		d	Do: Set up a pension plan if you don't have one
		e	Consider: Should you add to your pension?
		f	Consider: Should you make AVCs?
		g	Consider: Should you set up a personal pension plan?
		h	Consider: Should you build your retirement savings in an ISA?
		i	Consider: Could you invest in property?
		j	Consider: Could equity release help fund your retirement?
		k	Consider: Should you invest in shares?
		l	Consider: Could alternative investments help to fund your retirement?

		a	Work out: What will your investments be worth when you retire?
		b	Work out: How much money will your investments give you to live on when you retire?
		c	Decide: Do you need to pay more into your pension?

		a	Do: Start saving for early retirement
		b	Do: Review your retirement plans regularly
		c	Do: Reclaim higher rate tax relief

		a	Decide: Do you need to cut back?
		b	Do: Write a spending budget
		c	Find out: Can you cut your compulsory expenses?
		d	Find out: Can you cut the cost of your essential outgoings?
		e	Find out: Can you get your luxuries for less?
		f	Do: Keep a spending diary
		g	Consider: How can you change your spending habits?
		h	Work out: Are you sticking to your budget?
		i	Decide: Should you put spare cash towards your pension?
		j	Do: Work towards becoming debt free