Many business owners used the year of lockdowns to review exactly what they wanted to do moving forward. Some have closed their doors forever, choosing to sell their business and do something different with their lives.
I’ve seen a similar trend with employees who have been furloughed. Without costly commuting, foreign holidays, and other household and family expenses, they have more money in their savings pot than usual.
Suddenly, the thought of retiring early doesn’t seem like such a far-fetched scenario anymore.
The State retirement age in Ireland in 2021 is 66 years, which is when you’ll receive the Irish State Pension if you have enough PRSI contributions.
But what if you could shave five or even ten years off that?
I’m sure I don’t need to tell you all the benefits of retiring early. Most of my clients have enjoyed spending time with their families over the past twelve months and want to continue having that freedom. If you aim to retire at 60, you’ll still be young and healthy enough to enjoy travelling, sports, and relishing leisure activities with friends.
It’s worth recognising that we live longer thanks to the advancement in medicines and taking control of our health and wellbeing. A 65 year old man has a 50% more chance of living to 87, and a female of the same age has a 50% more chance of living to 90 (source: Central Statistics Office Office for National Statistics).
Add a number to your retirement goal right now. Commit to it and then take the action steps necessary to make it happen. Answer this simple question – what age would you like to retire?
Now you’ve committed, let’s think about the practicalities of retiring early.
Let’s assume you want to retire at 60. The basic guidelines would be to have 20/25 times your retirement expenses. That could look something like this:
Most people will have several pots of money to utilise, including their State Pension, an employer’s pension scheme, savings, or other income sources.
Your expenses will change over time as your money is spent on hobbies and travel rather than work expenses. All of this would need to factor into your retirement budgeting.
Clearing any outstanding debt will give you more financial freedom as you embark on a new way of life. If you’re unsure how to budget and focus on your debt management, please book a call with us today, and we can help you put this into place.
Our financial life planning service is called ‘Life Without Limits’, and it helps you understand what is most important to you in life and why. We help you identify what needs to be put in place to retire early and maintain the lifestyle you and your family dream about.
Our approach begins with reviewing where you are today and where you want to be in the future through our DREAM programme.
If you’re ready to live the DREAM, get in touch for a chat.
Create your financial life plan with Ireland’s first RLP® financial life planner, Rory, to discuss how his programme can shape your future and allow you to live a life without limits.
Financial Life Planning sessions are conducted face to face or over Zoom/Skype/Teams. Book your call today HERE.
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