How to retire early

This may not be the first thing you think of when you are trying to decide when you want to retire, but it is an integral part of the decision.

Your income is likely to reduce, perhaps substantially, once you retire so your ability to repay your debts will also change. For this reason you need to be realistic about how old you will be when you are free from these debts and perhaps look at retiring after they're cleared. This will also ensure that your retirement income goes to fund a lifestyle you are able to enjoy rather than one that becomes a struggle.

Mortgage lenders especially are reluctant to lend to anyone in retirement, and this is why you will find it very hard to get a mortgage that will continue after age 65 from most lenders. But of course, your mortgage is not your only form of borrowing. Other forms of debt you may have, such as hire purchase deals, secured or unsecured personal loans, can all be affected by whether you are retired or not.

Look at each of the agreements you have in turn, and see how long they have to run, and how old you will be when they finish.

Consider:

• Your mortgage
• HP agreements
• Secured loans
• Unsecured loans
• Credit card debts
• Overdrafts

These last two are less of an issue, as you can still borrow through credit cards and overdrafts relatively easily even after you have retired. But keeping up the payments on a lower income will not be easy, so take them into consideration all the same. Ideally, you would start your retirement without owing anyone any money at all