10 Common Myths That Might Be Killing Your Early Retirement Plans

You’ll need to save 50% of your income

As we’ve mentioned earlier, saving is an essential step in retiring early. It’s simple maths, actually. You’ll need to have a hefty amount to be able to retire early and have a comfortable lifestyle. The more you put aside, the sooner you’ll be able to leave the workforce. But is it really true that you’ll need to save 50 percent of your income to make your dream of retiring early possible? Not really.

According to the U.S. Bureau of Labor Statistics, early retirement is possible by saving less than 50 percent. For instance, if a couple earns $100,000 a year, 25 percent of their earnings can be turned into savings and invested at an 8% return. By doing a simple calculation, this means that the couple will manage to save around $1.3 million in 20 years. For some, $1.3 million might not be enough. The point is the more money you put away, which can be less than 50%, the higher your return.

Read also: Want to Retire a Millionaire? Follow These Efficient Saving Steps

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