We hear the phrase “Retire Early” every so often, especially in terms of planning your future. Most people imagine a relaxed, no – work retirement with time for all the hobbies. But it is not so straightforward. Retiring early can mean:

• Financial Independence: You have enough money saved and invested to cover your living expenses indefinitely without needing to work.
• Work Optional: You might still choose to work part-time or on passion projects, but not out of necessity.
• Lifestyle Freedom: More time to travel, spend with family, pursue hobbies, or volunteer.

Even the reasons for retiring early vary - burnout, a desire for more freedom, health issues, or just a different definition of success. So, retirement planning has to take into consideration what you want to get out of it. To start that your main goals need to be carefully defined, not just financial but also aspirational.

DEFINE YOUR RETIREMENT GOALS

The first main question that pops up is -

1.  When can I retire?

While this question seems straightforward, there are two other points that need to be taken into consideration.

1. How much do you need in your retirement to spend? What kind of lifestyle are you looking for? What are you planning to do with your time?
2. How much will you save from now until retirement?

The answers to these questions help map a broad framework of what your retirement planning will look like. Coupled with how you define retirement, you can create a comprehensive plan with well-defined goals. But you have to be mindful that the three factors are also variables. At any given time, you’ll likely only have clarity on two of them, while the third remains uncertain.

“When can I retire?” is directly related to “how do I retire early?” To answer that, you need to decide your approx. financial and lifestyle goals (Approx – because it is not possible to accurately plan for the future). The variance increases the younger you are. While it is a good bet to start early, do keep in mind that financial goals are tied to life goals and they do change. The best bet is to revisit your plans regularly and adjust them based on your ever-evolving goals and external factors (such as inflation, economy, world politics etc.)

HOW TO DECIDE YOUR RETIRMENT GOALS

There are countless variables that can significantly impact your financial needs in retirement. For instance, the job you retire from—whether it’s a high-income corporate role, your children's needs, such as education, weddings, or even ongoing financial support, can also reshape your budget in ways that are difficult to predict early on.

Then there’s inflation, a silent but powerful force that erodes purchasing power over time. What costs $50,000 a year to live comfortably today may require $80,000 or more two decades from now. Add in unpredictable elements like healthcare costs, market fluctuations, housing needs, and the overall state of the economy, and it becomes clear why defining long-term financial goals is such a moving target.

This doesn’t mean you shouldn’t try—but it does mean your goals should be flexible and reviewed regularly. Think of your financial plan as a living document, one that evolves with your life circumstances and the world around you.

SO WHERE TO START

A good starting point for estimating your retirement needs is your current spending. This provides a rough baseline for what your post-retirement expenses might look like. From this amount, you can subtract certain costs that are likely to decrease or disappear by retirement—such as childcare (which ideally ends before retirement) and housing expenses if your mortgage is fully paid off.

However, you’ll also need to account for new or increased costs. Healthcare is a major one—will your employer-sponsored coverage continue after you retire, or will you need to arrange your own? Additionally, lifestyle expenses may rise, as you'll have more free time to travel, pursue hobbies, or simply enjoy a more relaxed pace of life.

While these estimates may not be precise, they serve as a solid starting point for thinking through your retirement goals. They help you begin mapping out future projections in a realistic way. It’s only after you gain this foundational understanding that calculators, tools, and formulas become truly meaningful and relevant to your planning. Besides also prioritizing which of the variables takes precedence.

Would you like to know more or need to help with your retirement plans? We have an offering that can be tailored to your specific needs - “Retire Well”

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