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Want to Retire at 57?  Here's what you need to know! Thumbnail

Want to Retire at 57? Here's what you need to know!

Insights Tax Planning Retirement Planning Social Security

Many young people would like to retire as early as they can.  It is possible, but there are some major obstacles in front of you.  If you want to retire at 57 (or any age for that matter), here is what you need to know.

  • 0:00 – Intro
  • 0:17 – Disclaimer
  • 0:41 – Obstacle 1 – Health insurance
  • 1:27 – Obstacle 2 – More long-term stress on your savings
  • 2:24 – Obstacle 3 – Debt payments
  • 3:50 – What you can do – Make saving a priority
  • 4:50 – What you can do – Eliminate debt
  • 5:21 – What you can do – Focus on being healthier
  • 6:03 – What you should know – Retiring early will impact your Social Security
  • 6:43 – What you should know – How to access your retirement accounts without a penalty
  • 8:29 – What you should know – Plan for future tax flexibility
  • 10:07 – Key things to consider
  • 10:44 – It is critical to plan
  • 11:32 – Outro


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Obstacle 1 – Health Insurance

Health insurance will be a significant expense if you retire prior to being eligible for Medicare.   Expect a large outlay and coverage with high deductibles and out of pocket limits.

Obstacle 2 – Long-term stress on your savings.

 Retiring early means your savings will have to last longer.  This means you need to set your withdrawal rate lower to reduce the risk to your nest egg.  It might also mean you have to accumulate more.  In addition if you retire prior to age 62, you can’t depend on Social Security for a portion of your income.

Obstacle 3 – Debt

Mortgage payments and car payments are often big items on your household budget.  Doing what you can to eliminate those payments makes retiring (at any age!) easier.  

What can you do – Save more!

It is an obvious suggestion.  If retiring early is on your mind, you need to be very aggressive with how much you save.   It will have the biggest impact on how much you accumulate over time.  You might also need to be more aggressive with your investments to try and improve the longer term returns.

What can you do – Eliminate debt.

 If you can find room in your cash flow to pay off the mortgage or your car before you retire, you’ll be in a better position.  Look closely at how this strategy can impact your longer-term plans.

What can you do – Live a healthier lifestyle.

 You may not avoid health insurance premiums.  But you can do things to improve your health.  Doing things to help you avoid chronic conditions or other longer-term problems can result in smaller expenses for health-related costs.

What you should know – Retiring early can impact Social Security benefits.

 Retiring early can reduce your primary Social Security benefit.  In addition, you may be in a position where you need to start taking your benefits early. That will also reduce your benefits.

What you should know – Accessing retirement accounts without the 10% penalty.

Traditional IRA’s, 401k’s and other types of retirement plans often come with a 10% tax penalty for early distributions.  There are ways to get the money out of these accounts without facing the penalty.   They can be complicated, and you should talk to an advisor.

What you should know – plan for future tax flexibility

When you are saving for retirement think about taxes in the future. Tax deferral is a useful tool, but having the ability to manage your taxes in the future can also be beneficial.

It starts with a plan

 If you want to retire early, the financial planning process is critical.  It can help you determine how to make that dream a reality.   If you need help, reach out to one of our financial advisors to talk about your retirement planning needs.

Appearing in this Episode:


Retirement PlanningMike Seese, CFP® - Mike is a Certified Financial Planner™ Professional in Parkersburg West Virginia.   He has been helping clients with retirement planning and wealth management for more than 25 years.
Financial Consultant Parkersburg WVAndy Dollman – Andy is a financial consultant in Parkersburg, West Virginia.  He has been working with clients for 4 years to help them plan for retirement
Financial Advisor Wealth ManagementNeal Watson, CFP® - Neal is a CFP® Pro and a financial advisor in Marietta, Ohio.  He started helping clients plan for retirement in 1996.