6 secrets of early retirees
Savers who follow this advice can be well-positioned to make early retirement a reality.
This post comes from Catey Hill at partner site SmartMoney.
There are some people who want to work well into their 70s. Then, there are the rest of us. Those of us who can't wait to get rid of the boss lady, hit the golf course and just plain chill out for a few decades -- maybe with a smattering of part-time or volunteer work and some new hobbies thrown in. If you're in this camp, a new study reveals how you can make it happen.
The Transamerica Center for Retirement Studies released a study showing what those who realistically plan to retire before age 65 are doing to reach their goals. "These aren't trust fund babies," says Catherine Collinson, president of the center. "These are everyday people with extraordinary habits." Post continues after video.
Below are the defining success factors of these soon-to-be "early retirees." They are more likely than the average person to:
- Save for retirement outside of just their workplace plan. Sixty-nine percent of early retirees do this vs. 60% of those who plan to retire after 65 and 49% of those who say they'll never retire. (How much will your 401k provide? Try MSN Money's calculator.)
- Defer a high percentage of their salary into a retirement plan. Early retirees defer a median of 10% vs. 6% for those who plan to retire after 65 or don't plan to retire.
- Start saving at a younger age. The median age early retirees begin saving is 25 vs. 30 for those who will retire after 65 and 31 for those who never plan to retire.
- Have a thought-out retirement savings strategy. Seventy-one percent of early retirees have either a written plan (16%) or a non-written plan (55%), while just over half of those who plan to retire after 65 do and just one-third of those who will never retire do.
- Be very involved in managing and monitoring their retirement accounts. A total of 71% of early retirees say they are very involved vs. 58% of those who will retire after 65 and just 45% of those who say they will never retire.
- Have saved the same amount or more since the recession began. Seventy-one percent of early retirees are doing this compared with 61% of those who will retire after 65 and just over half of those who never plan to retire.
More on SmartMoney and MSN Money:
- Calculator:Am I saving enough for retirement?
This article didnt include the most important step to being able to retire early: DONT HAVE KIDS
Who is this lady? Save the same or more during the recession?? I am living out of my savings because of this recession. It's a spiro downhill into retirement. I will retire when my savings runs out.
While I agree that these type of one size fits all recommendations aren't for everyone, I personally can't get enough of them. My wife and I are 29 and 30 years old respectively, and have been following these ideals since we were in our early 20's. The author is simply conveying tendencies of a specific group of people that plan on retiring early.
I know it sucks out there for a lot of people, and I hope the economy gets better so my friends and family that are struggling can get back on the horse after losing their homes, retirement incomes, etc... Just because you're blessed enough to be able to institute these ideals in your life, doesn't mean you're guilty of anything. Just the same, because you cannot doesn't either. All the best to those of you falling on hard times. I hope your life becomes everything you want it to be...
I also agree that the author is sexy. : )
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