Early Retirement Plans for Ages 55, 45 and 35

Early retirement plans are something that you should consider if you want to join the trend of retiring as early as possible to do the things that have been missed because work came first.

Early retirement allows you to relax and enjoy what life has to offer. You do not have to wait until you are 60 and your back is already killing you before retiring. You can retire when you 55, 45 or even as young as 35. If you retire early it means that you have to have early retirement plans.

Retiring at 55

The normal retirement age in the US is 62 years. When you retire at this age you are entitled to your full retirement benefits. Retiring at 55 is 7 years earlier than the normal retirement age and that could mean that you will not be able to receive you full retirement benefits.

Now, a lot of people are relying on their social security benefits when they retire in addition to their own retirement savings. People may not be able to achieve their desired standard of living if they retire early and receive less than their full benefits.

Fortunately, in the US there is a 55/25 retirement program for those having early retirement plans at the age of 55 and this entitles you to receive your full retirement benefits provided that you have served 25 years of credited service. That means you should have been working for at least 25 years in a job recognized by the program. If you plan to retire as early as 50 you can sign up for this retirement program.

Retiring at 45

Retiring at 45 can be called pre-early retirement. Early retirement plans at the age of 45 is not a usual move but a lot of people nowadays are making early retirement plans at this age. Those who have shown excellence in their work and have been in the service for a long time may be qualified to retire at this age.

You can actually receive monthly benefits from SDRS when retiring at 45, provided that you have a minimum of three years of retirement contributions. For regular programs the retirement money you will be receiving will be reduced, but if you opt for a special early retirement plan, you can actually receive your full retirement benefits even if you retire at 45.

Retiring at 35

Retiring at mid-30s? It seems highly unlikely, yet it is possible. The decision is all up to you. The implication of retiring as young as 35 includes not being able to receive your full social security benefits and retirement payments from your pension plans.

However, if you have alternative income generating sources to support your lifestyle even when retiring at 35, then you can pull it off. The key is to save the majority of your income (around 75%) to income generating assets like bonds and stocks where you do not have to work to receive money. The dividends will find their way to you. You just have to make sure that you have invested your money in stocks that are not at risk of collapsing in the market.

Relying solely on social security and pension plans for your retirement is not very smart. The most that these two can provide is 40% of your retirement income. The rest should come from your own nest egg of retirement savings and other income generating sources. Knowing at what age you want to retire is important in determining how much you need to save up for your retirement and it helps jump start the process.

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