Retirement 2024: 10 Money Moves to Make Right Now if You Want to Retire Early

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For many years, the consensus was that retirement was based on an age or a specific amount of money in the bank. Now, it’s a much more flexible concept that can be anyone’s for the taking — regardless of age, net worth or time working with an employer. 

If early retirement is on your radar for 2024 or beyond, check out these tips to help you prepare to enter your golden years with ease. 

1) Start Early 

This may sound like a moot point if it feels as if time has already passed you by, but it’s still possible to plan for an early retirement. Even if you feel like you haven’t adequately planned or saved for the occasion, don’t write the idea off just yet.  The key to reaching your goal is understanding what you need to do to get there. 

You’d be surprised at how soon you can reach your goal just by planning for it and making intentional moves to make it happen. The rest of these tips will help you do just that. 

2) Figure Out Your Needs in Retirement

Your first order of business is to figure out what you’ll need in retirement — namely, the lifestyle you’re aiming for and the income needed to support it. 

Dr. Severine Bryan of Sev Talks Money is an Accredited Financial Counselor and was able to retire earlier than she previously thought. She noted that, “A few things that I did to prepare for early retirement were paying off all high-interest debts and calculating how much I would need to spend each month.” 

As part of this fact-finding exercise, you’ll need consider where you’ll live in retirement, the amenities you’d like access to and any major expenses you’ll need to account for. Don’t forget to account for healthcare, long-term care and changes in your tax treatment in retirement.

This research should bring you to a monthly dollar amount you’ll need for retirement. You should then be able to reverse-engineer savings goals and a budget from here. 

3) Create a Budget 

Now that you know what you’ll need in retirement, you should create a budget or spending plan that accounts for your early retirement goal. Your budget should include a line item for more aggressive savings and any cost-cutting measures that can help you pad your nest egg. 

4) Reduce Your Expenses

Your budget should lead you to audit your expenses. If you need to start saving more, this step is essential. If there’s anything you can cut out or reduce, it will help you to ramp up your savings efforts. 

5) Maximize Your Savings

Howard Schilit is a financial forensics expert who advises people that take multiple career breaks. His financial advice also applies to those vying for early retirement. He has said that, “The more you save early on, the more options you have later in terms of length and frequency of career breaks.”

If you’ve created a budget that calls for more savings, look for tax-efficient ways to save your money while accumulating money as quickly as possible. 

You may have access to an employer-sponsored retirement plan you can contribute to. Take advantage of any employer matches, employee stock purchase programs (ESPP) or other savings vehicles to fast-track your savings and investment goals. 

6) Diversify Your Investments

In the previous section, we discussed contributing to your employer-sponsored retirement plan, which is a good start. However, putting all your eggs in one basket is not wise. If one savings strategy or stream of income fails, you’d definitely want to have other options as a backup. Think about other investments that could support you in retirement, like real estate, businesses, precious metals or collectibles. 

7) Pay Off Your Debt 

Heading into retirement with no debt will take the pressure off of a fixed income. To minimize your expenses, aim to pay off your mortgage, credit card debts and other loans before you retire to reduce your financial obligations in retirement.

8) Establish Additional Streams of Income

If you find it hard to meet your savings or debt paydown goals, then finding additional ways to make money could be helpful. This could include taking on work part-time or as a freelancer. If you want more passive forms of income, consider investing in rental properties, dividend-paying stocks or a small business. 

9) Confirm Your Health Care Options and Plans

Even if you don’t have any serious health issues or pre-existing conditions, it’s best to be very proactive about your healthcare planning in retirement. Choose a plan that works for your budget and addresses potential issues that could crop up as you age. 

If you don’t have long-term care insurance, now may be a good time to look into it or at least have a plan to cover expenses if you end up in a long-term care facility. 

10) Test-Drive Your Retirement 

Before you take the plunge, try living on your projected retirement budget for a few months. This is precisely what Dr. Bryan did. “I practiced using my ‘retirement budget’ for an entire month,” she said, “before walking away from my job.” 

This exercise can help you adjust your plans and expectations while preparing you for a smooth transition into early retirement.

Early retirement is a dream for many, but it requires some planning, intention and execution. Hopefully, these tips will get you started on the right path sooner rather than later.

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