source: scotsman.com
Five ways to achieve the dream of early retirement
Most of us will look longingly at our bank accounts and wonder whether we will ever be able to afford to retire early to enjoy the good life. But it’s not impossible to plan for it and achieve it. Here are five tips to help make your dreams of early retirement a reality.
Can i do part-time work
One way of benefiting from the freedom of retirement when you’re still young is to consider a scheduled early retirement. Nearly half of you are planning to work part time with their current employer or on a new career with reduced hours.. This could be worthwhile if it would mean saving less income tax. If your your mortgage has been paid off, this may allow you to avoid using your retirement savings to work less. Your work-based pension scheme may permit you to withdraw some money now, then reducing the amount later on.
Start saving young
Start saving as young as you can make a big difference. Most people who are forthright enough to start saving as early as possible enjoy a happier retirement. 4 in 10 people in the UK retire without a pension, start looking at the best options for you. That adding more into their contribution pension pot can afford to fund a better yearly income in retirement. You would perhaps do this with better foresight.
Plan your pension flow carefully
A workplace pension is just one way to help fund life in retirement. Where employers’ contributions are a helping hand, they are not making enough on their own to retire early. Factoring in your state pension when calculating what you’ll need per year in helping boost your figures, alternatively if you decide to top-up your state pension by.
Be shrewd with tax break?
Being canny with your taxes can also help the monies help us. If you are part of a defined contribution pension scheme, you can withdraw as much as you want, and quarter of which will be tax-free. Combining that with ?their income, such as a tax-free sum will keep you below the higher rates if income tax and better off financially in later life.
Equity release
If you own your own property, you may want to consider downsizing or moving to an address where the property of houses value, returning some of the value of your house into readily available money?. Alternatively, if you’re young planning ahead, buy a property that will in due course allow you to release equity in later life.
