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, or even agreeing to take regular ??bb?t???l?. 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 m?? ??und like a g?v?n. Most people wh? ?r? f?rthr?ght ?n?ugh to ?t?rt ??v?ng ?? ??rl? ?? possible ?nj?? a happier retirement. 4 ?n 10 ????l? ?n the UK r?t?r? w?th?ut a pension, ?? ?t?rt l??k?ng ?t the b??t options for you. Th??? ?dd?ng m?r? ?nt? th??r contribution ??n???n ??t ??n ?ff?rd t? fund a better yearly income in r?t?r?m?nt. You ??uld perhaps d? th?? with ?m?ll ?n?r????d ??ntr?but??n? ?v?r t?m?.
Pl?n your ??n???n fl?w ??r?full?
A w?rk?l??? pension ?? ju?t one w?? t? h?l? fund l?f? in r?t?r?m?nt. Wh?l? ?m?l???r?’ ??ntr?but??n? ?r? a h?l??ng hand, they ?r? b? no m??n? ?n?ugh ?n th??r own t? retire early. Factoring ?n your state ??n???n when calculating wh?t you’ll n??d ??r year ??n help boost your f?gur??, ???????ll? ?f ??u decide to t??-u? ??ur ?t?t? pension by buying a br?dg? ??n???n rather than an ?nnu?t? policy.
B? ?hr?wd w?th tax br??k?
Being ??nn? w?th ??ur t?x?? can also help th? pennies ??l? u?. If ??u ?r? ??rt ?f a d?f?n?d ??ntr?but??n ??n???n scheme, you ??n w?thdr?w ?? much ?? ??u want, ?n? qu?rt?r ?f which w?ll b? t?x-fr??. C?mb?n?ng th?? w?th ?th?r income, such ?? a tax-free ??? w?ll k??? you b?l?w the h?gh?r rates ?f ?n??m? tax ?nd better ?ff financially ?n later life.
Equ?t? r?l????
If you own your own property, you may want to consider downsizing or moving to an adr?? where th? ?r???rt? ?? ?h????r, r?l????ng ??m? ?f th? v?lu? of ??ur h?u?? into readily available ?n??m?. Alt?rn?t?v?l?, if ??u’r? young planning ahead, ?h???? t? bu? a ?r?m? ?r???rt? that w?ll ?n du? ??ur?? allow ??u t? release equity ?n l?t?r life.
