Most of us have an age in mind at which we’d like to stop working. But what if circumstances change and you need to retire early?
According to a 2020 survey conducted by the Employee Benefit Research Institute, nearly half of retirees said they left the workforce earlier than planned.
Early retirement is often brought about by unexpected events such as an illness or a layoff—both of which were especially prevalent in the wake of the coronavirus pandemic. “It may not be part of your plan, but that doesn’t mean it isn’t doable,” says Rob Williams, vice president financial planning at the Schwab Center for Financial Research. “The challenge is figuring out whether your savings can last.”
With that in mind, here are three steps you can take to determine if you’re prepared for early retirement.
Step 1: Review your current financial picture