Navigating Early Retirement: Expert Advice, Goal Setting, and Options

Early retirement is becoming increasingly concentrated among wealthier individuals, according to a report by the Institute for Fiscal Studies. Financial necessity often drives employment among those with average levels of wealth, who work until they reach pension age. The key factor in achieving early retirement is money, and individuals must consider whether they can afford the lifestyle they desire. Saving early and implementing lifestyle changes are crucial, as is having non-pension savings to bridge the gap until state pension age. Housing costs, such as high mortgage payments, can deplete pension savings rapidly, so downsizing may be an option. Investing and taking calculated risks can also help position individuals for early retirement. However, many people exhibit complacency when it comes to pension savings, often relying on default contribution rates set by employers, when ideally they should be saving between 12% and 15% of their total earnings.