There’s a whole new retirement world out there, and you get to define it.
Early retirement isn’t an unattainable dream, even if your income isn’t stellar. It’s what you want out of retirement that determines how you should go about getting there. It’s not the easiest thing you’ll do. But the best things in life usually aren’t.
With more people working throughout retirement and putting off Social Security until later to max out benefits, the lines between work and retirement are getting blurred. You get to define what it all means and when it happens. And with the help of a retirement calculator, you can do just that.
A great mustache isn’t required, but it probably doesn’t hurt. (Image Credit: Mr. Money Mustache, by Jeremy Vohwinkle , via Flickr Creative Commons)
Retiring Early Takes One of Two Things
Retiring early is more than a matter of just deciding to do it. You’ll still need income afterward, and it has to come from somewhere. If you have high earnings, there’s your basis for saving and investing to retire when you like. If not, you’ll have to work differently.
For most people with more moderate income, finding the means for later means scaling back now. Big time. Peter Adeney, the Mr. of Mister Money Mustache fame, and his wife retired when he was merely 31. And they did so on a combined working income of about $134,000.
Adeney tells Business Insider that it all came down to living on about half as much as their peers, and investing 3/4 of their income. When you think about financed vehicles, for example, as a necessity, you’ve got it all wrong. At least if you want to leave the workforce early.
A retirement calculator helps you get the most benefit out of your working years.
How a Retirement Calculator Can Help
Retirement calculators are fascinating tools. They can tell you general information, such as how much you’ll have for retirement if you stay on the path that you’ve created. You can add information such as how much you have invested, how much you expect to receive in Social Security benefits plus any annuities, and then you can take it a step further.
In addition to giving you a snapshot, they let you play around with the numbers. What if you maxed out your 401(k) contributions or started a Roth IRA? You’ll see the results instantly. And what if instead of retiring at 35 you waited until 40? The calculator adjusts to tell you how much you’ll need.
It’s not exactly magic. The numbers that you see are based on information that’s particular to you. Where do you live, do you own your home, and what kind of lifestyle to you want in retirement? All of these details and many more factor in for your baseline, and you can tweak the numbers to find your best plan.
Retiring early isn’t some magical dream that only a select few of the wealthiest people can manage. You do need a certain level of income, that is true. But how much depends on a lot of things, most important of these being the kind of lifestyle you want to live.
Maybe you’ll continue to work in retirement. Many people do, even just part time or as a consultant. Or maybe retirement, to you, means starting your own business with enough secondary income to sustain you through the ups and downs that may come. The earlier you retire, the more of those you can expect.
It’s not the same as it used to be, this retirement business. It’s being redefined by each new generation, and NewRetirement can help. If you want to leave the 9-5 workforce sooner than typical retirement age, chances are you can. It all depends on how determined you are, how well you invest, and whether you have a great plan. Try out our retirement calculator today and start an early retirement plan of your own.