Retiring at Age 40

Retiring at any age is possible, just a few things to think about when you are ready. The average age to retire is typically 66, allowing you decades to save.

The younger you want to retire, the more aggressive you’ll need to save.

Retiring at a younger age, like 40; requires an aggressive savings strategy.

If you are looking to retire at age 40, you can start by running the numbers to find out how much money you would need to save each month and decide if that’s something you can afford to do. If the savings seems to far out of reach, consider cutting your spending or finding ways to earn more. Or adjust your age of retirement.

Like any retirement, you’ll want to plan on what you want to do when you retire. If you plan on traveling, you’ll want to save more than if you were planning on staying home and playing with grandkids. How will your day to day spending change?

Once you have an idea of your long-term goal, how much you need to save and how long until you reach 40 or your desired age of retirement; then take a look at how much you already have saved. This will then tell you how much you need to save to reach your goal by age 40, or the desired age of retirement.

People who want to retire at age 40 typically trim their expenses as much as possible. Get a roommate or two, use public transportation after selling their automobile and cut out all the “extras” like Starbucks coffees or cable TV. They also, work overtime or take on a part-time job.

If this sounds like something you can do, then with the right plan you can retire at age 40.

If you need help understanding retirement or help finding a plan that works with your lifestyle, call Jim Rooney at Advanced Insurance Concepts. We work with a variety of insurance companies in Missouri and Kansas. We are licensed to sell Health, Life and Accident Insurance, so call Jim Rooney for all your insurance needs.