Every next generation is hoping to retire early and enjoy the rest of their lives peacefully and in harmony. For this to happen, one needs to start saving as early as possible. Also, the amount of savings should increase as retirement age you have in mind goes down. Half of the population in the US says they want to retire by 60. Only one-third of population may be able to achieve it due to factors like inflation and not saving enough money. More than 80% of the population expects that the retirement age will increase in the next few decades.
Retirement is becoming costlier as life expectancy is growing due to better healthcare facilities. An average senior citizen spends about US$ 46,000 annually. If one spends this much amount for 25 years, the cost of retirement would be more than a million dollars without factoring in inflation. Retiring at an early age is difficult but not impossible for sure.
Setting up automatic savings, so certain amount is deducted from your bank account each month. The amount could go into your retirement account, or you could invest it for the long term. By this method, one can control and limit their expenses. Increasing your savings percentage is essential. To enlarge the amount at retirement, increasing your saving annually by at least a few hundred dollars. It is not that difficult to increase your saving annually as for most salaried people get increments periodically. If retiring at an early age is a significant goal in your life, saving consistently is very critical. For saving more money, one could always make budget cuts. More than half of Americans spend about $ 500 for non-essential things per month. A survey stated that nearly 60% Americans live paycheck to paycheck. Try saving maximum from non-essential expenses. Also, one could make use of Social Security benefits.