How would you like to retire early? Maybe 62 is a good age or maybe you’d like to retire at 60 or even 55.
But unless you’ve won the lottery, have a government pension, or are the favorite niece or nephew of a rich uncle, you may find it difficult to achieve your goal. If can still be done, though. You have two options: cut your expenses or increase your retirement savings. Better yet, do both.
More specifically, you should be able to take that job and shove it at an age earlier than 65 if you do the following:
Cut back on your expenses. Even people who think they’re living frugally usually aren’t. How often do you dine out? Do you stop for coffee on your way to work? What do you spend on hair stylists, clothing, manicures and pedicures? Do you do your own landscaping and mow your own lawn?
Non-essential expenses add up. Review everything you spend and make a cost-benefit analysis. Determine whether the convenience and pleasure you derive from your expenses is worth the investment. Maybe Two-Buck Chuck is no substitute for your favorite Côtes du Rhône, but would you rather drink good wine or retire early? You may not be able to do both.
When you cut your expenses, consider the opportunity costs. For example, if you are self-employed and can make more money with your work in the time it would take you to do your own landscaping, by all means, hire someone to do it for you.
If you still have a mortgage, ideally you’ll want it paid off before you retire, which will significantly reduce your expenses. At today’s low interest rates, you can convert a 30-year mortgage to a 15-year mortgage without adding too much to your financial burden.
Conversely, if you have the resources for retirement, you may want to stick with a longer mortgage, as rates are unlikely to drop this low again in the foreseeable future. If you can earn a return elsewhere that exceeds the interest rate on your mortgage, you may be better off financially not paying it off – as long as you invest the money, rather than spending it.
Keep expenses low during retirement. If you’re retiring to spend more time traveling, golfing, skiing or boating, you may want to take up new, less expensive hobbies. You can read books, hike and go to the beach for free or almost free. If you want to travel, you’ll be able to afford more travel if you comparison shop for the best bargains on hotels. If you’re adventurous, you can even use a service such as Airbnb to find a home to stay in.
You may want to be a snowbird, living in the north during the summer and the south during the winter. Keeping two homes is expensive, though, as you’ll pay double property taxes, insurance and other expenses. Consider having just one home during retirement; after all, you can live in only one place at a time. Assuming your children are grown and out of the home, it’s a good time to downsize, which will save you money on your mortgage, as well as your heat and air conditioning.
Eliminate debt. Ideally, when you retire, your mortgage should be paid off, any student loans should be long behind you and you should own your own vehicle outright. Assuming you use credit cards, make sure you pay the balance every month. If you pay the minimum, you will never get out of debt.
If you have significant debt, don’t even think about retiring early. You may need counseling to consolidate your debt, which will help you to pay it off in a timely manner. 
Know your needs. Be certain you have a clear understanding of how much money you will need. Be certain to consider expenses such as taxes and insurance.
If you will no longer receiving health insurance through an employer, look into the cost of obtaining it through your state exchange or through healthcare.gov. You may even qualify for a subsidy. However, proceed with caution, as your access to and quality of care may not be as good as you’re accustomed to with private insurance.
You will become eligible for insurance through Medicare when you reach age 65, but you may still need supplemental coverage.
At some point, long-term care may also be an issue. As the cost of nursing home care has escalated to six figures in many cases, long-term care can quickly drain your savings. Long-term care insurance can protect you, but it is expensive.
Regardless of whether you ever need long-term care, healthcare costs typically escalate as you age. Not everything is covered by insurance, so make certain you’ve saved enough to cover out-of-pocket expenses.