Almost 75% of Aussies aged forty-five and working want to retire in five years. By global standards, Aussies are much more in favour of retiring early, surpassed by only Argentina and France. However, harbouring the desire doesn’t imply most people manage to retire by the time they are fifty. Almost half of all those who want to retire early don’t go through with their plans. Those who are planning now have reportedly stated in many surveys that they don’t see themselves actually retiring although they strongly wish to do so.
The biggest hindrance in retiring early is financial. Most people are not financially equipped to work ten years less and don’t have enough saved up to keep living off their savings for decades. According to many surveys, around 70% of those wishing early retirement don’t have enough savings. Lack of savings is not the only reason though. Having dependents and existing debts are two common reasons why people choose to keep working.
- If you plan to retire early, you likewise plan accordingly and do so as soon as possible. Financial managers these days are suggesting that people plan for retirement the moment they hit thirty. That allows twenty good years and possibly the highest earning years to save enough for retirement. Twenty years would also be good enough to pay all debts, from home loans to car loans, raising kids to acquiring enough assets that will assure a healthy and prosperous retirement.
- You may want freedom, seclusion and may wish to travel. You may wish to pursue something you are passionate about or just want to have more time with your loved ones. There can be many motivations for early retirement. You may also want to start a business. Depending on what you wish to do and how you wish to enjoy your retirement, you must have appropriate goals.
- Saving alone will not help. It is advisable to invest in assets that would appreciate over time. From financial products to real estate, precious metals to any other type of investment that you have a penchant for, let your money double and grow instead of trying to stack up savings which will not grow by itself.
