How Can I Set Myself up for an Early Retirement?
During the early days of our careers, some of us set our sights on retiring early. Those of us in less desirable roles at different periods used our retirement goals to get ourselves through the daily grind. However, for many of us aged 50 and over, things have not panned out quite the way we dreamt of. Today, we are left wondering if we will ever be able to retire at all, or whether it’s even possible due to the everchanging economic climate.
However, it is never too late to add to the pension pot. Whilst we may not be retiring in our 40s or early 50s, retiring in your 60s is currently considered good going. For those who are young enough to truly retire early and desire to do so, take heed of this advice.
Set yourself up with easy income
Whilst setting up a steady income may warrant an initial expenditure of cash, such as securing an investment opportunity or buying a property to let, you can usually expect a regular return. Having regular cash coming in will ease you into early retirement seamlessly. Furthermore, these income options require little input and are a fantastic way to make your savings work harder.
One company offering an accessible opportunity is Wellesley. Their property investment bonds can be accessed online and gives investors the opportunity to invest your money into property backed loans acquired by Wellesley and in return receive a fixed rate of up to 6.00% per annum gross.
It is important to note, that as with most investments investor’s capital is at risk and interest payments are not guaranteed. Property investments may not always go to plan and may suffer from delays or reduction in the value of the assets. Investment through Wellesley is not covered by the Financial Services Compensation Scheme (FSCS).
Plan for financial independence instead
Some people feel as if retirement is an archaic term and action. Today, more and more individuals are planning for – what they call – financial independence. Shifting your way of thinking could pay dividends when years of ‘regular’ working doesn’t feel as if you were solely working towards retirement as a singular goal.
Pension planning
The whole concept of pensions can be confusing and tedious. To get a head start into retiring early it is often best to seek the help of a financial adviser. They will be able to help you make important financial decisions and help you put a plan together to reach your financial goals.
Changing retirement plans
Aiming for an early retirement is definitely an acceptable goal but it may be worth rethinking your retirement plan if things aren’t following the path you want. There is no shame in rejigging your future plans, particularly if you don’t feel you have the savings to fund the type of retirement you want.
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