Express.co.uk spoke exclusively with finance expert Michael Copeland from Wesleyan Group on practical steps people can take if they wish to retire by 60. With all retirement planning, the first thing that people should do is “sit and make a plan”.
Retiring early is a mission in itself as no one wants to risk running out of money, however if people can embark on this journey with a partner, it is “very achievable” and can make the whole process much easier.
Mr Copeland said: “A husband and wife can put £20,000 away each so that’s £40,000 a year that you can potentially invest into ISAs.
“Let’s say you’re 30, looking to retire at 60, you’ve got 30 years.
“If both of you manage to put £40,000 away a year for 30 years, that’s £1.2million you’ve managed to invest away tax free.
“There’s no income tax to pay, no capital gains tax to pay even on withdrawal.
“You’ll have all the growth that you’ve had over 30 years so there is an opportunity to build up a substantial pot.”
On top of that, people can also consider personal pension planning.
“Everyone is very IT literate now so keep a spreadsheet to know where all your money is.
“Keep your fund value updated so you can constantly track where you are against your retirement goals.
“This is really crucial because if you do lose track, this can take months to track down and knowing where all your plans are is absolutely vital.
“Lots of simple little steps that people can do that will help them to plan up to and also retire a little earlier.”