By continuing your visit to this site, you accept the use of cookies. They ensure the proper functioning of our services, analytics tools and display of relevant ads. Learn more about cookies and control them

Not yet registered? Create a OverBlog!

Create my blog

How to retire early

Almost everybody would like to know the secret of how to retire early, but the age at which you finally give up work and become your own boss is dependent on several factors such as the amount of money which you have already saved, and whether you have enough money to sustain you through the rest of your life. This issue is not as straightforward as it seems, as the average person is living much longer and the cost of living continues to rise.

Money in hand

Disposable cash
An important consideration for anybody planning to retire early - in other words before they can claim a state pension at 65 or 66 - is how much disposable cash or money in hand they have available. In many cases, knowing when to retire is difficult from this point of view. For instance, if you plan to take a holiday upon retiring, you will use up part of your disposable cash, which means that you will have to rely on other assets to sustain you. ISAs and other savings
People planning for their early retirement usually place their eggs in more than one basket. This means that they allow some of their cash savings to grow in individual savings accounts (ISAs), normal bank saving accounts or lottery bonds such as the state-supported NS&I premium bonds. The more a person spreads their risk, the better their chance of avoiding disappointment if their investment is negatively affected.

Fixed and other assets

Pension funds
If a person has been saving into a pension fund for many years, they will hope that this will pay out at the point they retire. However, it is crucial for savers to remember that most pensions only pay out at a certain age, and even then these will be carefully controlled amounts that reflect the gains or losses that the fund has made over the years. If you are retiring early, ensure that you have not taken an immediate pay out for granted. An early retirement calculator may guide you in answering the question of whether you can retire early, but this gadget should be consulted with the help of a pension adviser. Property
Owning a property has always been seen as a safe refuge for those wishing to retire early in the UK, but it is no longer the sure bet that it was before the recession. The crash in property prices means that those wanting to retire early need to have their property carefully evaluated before selling, and that they must be sure that they can sell it within a reasonable time if they wish to downgrade in order to fund an early retirement.

Same category articles Consumer culture

How to fix your credit score?

How to fix your credit score?

Before you apply for a mortgage, loan or credit card, you need to take steps to improve your credit history. A poor credit rating can be overcome by correcting mistakes on your credit report and managing your credit obligations differently. There are no quick fixes, but you can reduce the cost of borrowing and increase the likelihood of creditor approval in the future.
How to avoid useless customer service phone numbers

How to avoid useless customer service phone numbers

Is contacting the business customer contact centre driving you up the wall? Stay calm and remind yourself that there is more than one way to contact a company. Calling by phone may sound fast but there are other more effective methods which you can use and many people have had their problems solved through the latter. Read on for more information.
A guide to eBay UK

A guide to eBay UK

Ebay UK is the UK branch of the worldwide auction site Ebay. Its purpose is to allow people to buy and sell articles of a wide variety of types, either through an auction format or at a fixed price, known as "Buy it now". Buying and selling on eBay is very easy, but it can seem complicated in the beginning, Here is a guide to getting started.
How to make a monthly budget sheet

How to make a monthly budget sheet

A budget sheet is immensely useful for anyone who needs to watch what they spend. It is particularly necessary for hard up families, and for many students budgeting is a priority. This article looks at a simple way to make and use a monthly budget sheet.