Hoping to retire early? Retirement requires putting a plan into place, no matter what age you hope to take it. Below, we’ll offer 5 things to consider when thinking about how to retire early.
- The average age of retirement in the United States is 62 years old, according to a 2024 MassMutual survey. But a survey of Millennials and Gen Z workers found that 41% of those surveyed would like to retire by age 50.
- Early retirement is not impossible, but it requires a strategic plan, self-control, and an attitude of delayed gratification.
What is considered early retirement?
According to a 2024 MassMutual survey, the average age of retirement in the United States is 62 years old.
But the FIRE (Financial Independence, Retire Early) movement has gained momentum, especially among younger generations. According to a Qualtrics survey, a survey of 3,000 Millennials and Gen Z workers found that 41% hope to retire by age 50.
But typical retirement benefits — like Medicare and Social Security — don’t become available until you reach your 60s. Plus, these benefits are not necessarily guaranteed to exist in their present form decades in the future, given the chance of laws changing in that time period.
Early retirement is ambitious, but not impossible. Below are a few things to consider.
How will you use early retirement?
An important question that goes deeper than simply stating the goal of ditching the 9-to-5 grind early is asking yourself: how do you plan to use your early retirement?
Having a clear vision of what you want your life to look like in retirement will make any sacrifices necessary now for retirement later much easier than simply having the goal of quitting your job.
What can you do to plan for early retirement?
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Calculate your financial goal
Your target number will depend on you:
- What target age are you hoping to reach for retirement?
- How many years (estimated) do you expect to not work?
- What is your vision for how you will structure your lifestyle in early retirement? Do you plan to travel often, move to the beach, or live simply?
- Do you have a spouse and children to factor into this?
You’ll also need to consider inflation into your calculations.
No matter what your target age for retirement, working with a financial advisor can help you calculate the right number for your retirement savings.
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Create passive income sources
Passive income sources — like rental properties and investments — are key to keeping the income stream flowing during retirement. Work with a financial advisor to develop an investment plan meant for long-term growth.
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Max out retirement accounts
No matter your target retirement age, it’s always a good strategy to max out employer-offered retirement accounts, especially if your employer offers matching contributions.
Independent of employer-sponsored retirement plans, there are also plans you can open outside this, like a traditional or Roth IRA (depending on your income level). While most retirement plans come with penalties for withdrawing funds prior to 59 ½ (as of 2024), allowing these to grow over the years is well worth the payoff, even if you plan to retire early.
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Open a Health Savings Account (HSA)
A health savings account (HSA) is a tax-advantaged account that allows you to save for future medical expenses. Unlike other accounts, you aren’t required to start withdrawing money at a certain age, making it a great tool to cover not only qualified medical expenses, but also to save for retirement, too. Once you hit 65 years old, you can withdraw money from your HSA (for any reason!) and not be charged a penalty fee. You’ll only be taxed on withdrawals as regular income.
However, you must have a high-deductible health plan (HDHP) to qualify.
In 2025, the IRS defines high deductibles as no less than:
- $1,650 for individuals
- $3,300 for family coverage
If you no longer have a HDHP, the money in the account is still yours; you can continue to use funds for qualified medical expenses (or to save until you reach 65 years of age). However, you’ll no longer be able to make additional contributions to the HSA.
Learn more about HSAs as a tool for retirement.
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Make significant lifestyle adjustments
There’s no getting around it: in order to save enough to retire early, you’ll need to save as much income as possible — requiring significant lifestyle adjustments during your working years. This requires living well below your means and embracing a mindset of delayed gratification.
Depending on your full-time salary, you may need to also supplement this with other sources of income, like a side business.
Plan for retirement with a Landmark financial advisor
Don’t go after ambitious financial goals without the support and guidance of a trusted wealth manager. Work with a Landmark financial advisor to shape your plan for retirement.
This material was created by Starling Digital for use by Landmark Financial, LLC and does not represent the views and opinions of Avantax Wealth Management or its subsidiaries.