The first question most people ask about retiring early is, “Can I even do it?”
Well, skip ahead and start asking, “How can I retire early?” because the answer is in the UK there is no age limit on when you can retire. And most people can access their pension pot starting at 55 years old.
When looking at how to retire it varies greatly based on your individual financial situation. There are whole movements dedicated to this cause, such as the FIRE method, (Financial Independence Retire Early). But to get started there are a few key steps that can assist anyone on their journey.
1. Get a personalized, done-for-you retirement plan
Most people don’t even consider that they can retire early. They assume either it requires more money than it really does, or that it’s too financially complicated to figure out.
That’s where RetireEasy shines. It’s the UK’s most powerful independent retirement planning tool. It’s easy to use and lets you take control of your finances.
RetireEasy uses a quick 7-step guided process that brings together all savings, pensions and assets. It also takes into account future inflation and taxation changes. Then it shows you, in graphs and charts, how to plot and plan your finances right through retirement.
You can even see how changes you might make could affect your retirement plan.
We suggest trying their Classic plan for £5.99 per month to unlock the bulk of useful features.
2. Start working towards an 880+ credit score
Picture having an 880+ credit score. Near financial perfection. A score that unlocks the opportunity to get any loan or credit card you want. A score that ensures you’ll pay the lowest rates, and save tens of thousands, over the years.
That last part is where having a high credit score accelerates the date you can retire. Top obstacles to early retirement are all the big money buys: mortgage, car, loans, insurance. But if you are paying less in interest for all of these, that savings can go into retirement investments. You’ll be growing money not spending it.
Improving credit is not as difficult as many think and doesn’t require a high income. With Monese’s Credit Builder it’s as simple as installing the app and following instructions.
Monese Credit Builder helps build your credit history and savings for an improved credit score, better value loans and access to other Monese credit products for a secure, financial future. Plus, you’ll get a mobile money account that you can set up in minutes with access to contactless payments, budget tracking and instant payment notifications.
3. Cancel your car insurance
Want some bad news? You could be wasting £290 a year on high-priced, overrated car insurance that isn’t any better than a cheaper alternative.
Only thing to do is cancel your car insurance right now and get something better, or just as good, but costs less.
Quotezone has a new tool that can tell you if you’re paying too much for your car insurance. It only takes a few clicks.
On average, most people could save £290 a year.
It’s free to use, and having an few extra hundred pounds in your pocket is hard to argue with. Especially since it only takes a few minutes. When it comes to early retirement it’s often less about having high income, versus being smart and saving on all the little things. Multiply this savings over years and it adds up.
4. Relax, fall asleep faster, and rest deeper
Being able to retire early is a dream for most. But only if you are healthy enough to enjoy it properly once you achieve it. Living as stress-free as possible goes a long way towards that goal – nearly as much as regular exercise.
A good night’s rest not only keeps you healthier, it allows you to make better decisions about your future. People who struggle to sleep have been shown to have higher level of stress-inducing chemicals.
Restflix is a streaming service designed to help users fall asleep faster and stay asleep through the night. It uses a proven technology called binaural beats to harness the brain’s responsiveness to sound and help create a meditative, restful state.
Restflix offers unlimited video and audio with no interruptions, helping you to overcome insomnia, night-time anxiety, and hit each day with greater energy and vigor. And it looks like it delivers what it claims. Restflix has earned perfect 5-star ratings on both the Google Play Store and App Store.
Use code “rest20” to save 20%.