What Age is Considered Early Retirement?

Retirement is a significant milestone in one’s life, marking the end of a long journey of hard work and dedication. It’s a time when you can finally kick back, relax, and enjoy the fruits of your labor. But what if you could reach this stage sooner than expected? The concept of early retirement has gained popularity over the years, with many people aiming to retire early and live life on their own terms. But what age is considered early retirement? Let’s delve into this topic.

Understanding Early Retirement

Early retirement refers to leaving the workforce before the traditional retirement age, typically 65 in many countries. The specific age that qualifies as “early retirement” can vary widely depending on personal circumstances, financial goals, and cultural norms. However, most people who aim to retire early target an age range between 40 and 60.

The idea behind retiring early isn’t just about escaping from work; it’s about achieving financial independence so that work becomes optional rather than necessary. This allows individuals to pursue their passions, travel extensively or simply enjoy more leisure time.

Factors Influencing Early Retirement

Several factors can influence when someone might choose to retire early. These include:

1. Financial Stability: This is perhaps the most critical factor. To retire early, you need sufficient savings and investments to support your lifestyle for a longer period without a regular income.

2. Health: If your health condition doesn’t allow you to continue working or if you want to retire while you’re still healthy enough to enjoy it, you might consider retiring earlier.

3. Personal Goals: Some people have personal goals or dreams they want to pursue that would be easier without full-time employment obligations.

4. Job Satisfaction: If someone is unhappy in their current job or career path, they may be more motivated to save aggressively and make lifestyle changes that enable them to retire early.

The FIRE Movement

In recent years, the FIRE (Financial Independence, Retire Early) movement has gained traction. This lifestyle movement advocates for extreme savings and investments to retire early and live off small withdrawals from their accumulated funds. The goal is to save and invest very aggressively—somewhere between 50-75% of your income—so you can retire sometime in your 30s or 40s.

However, it’s essential to note that the FIRE approach isn’t for everyone. It requires significant financial discipline and often involves making substantial lifestyle changes to reduce expenses.

Planning for Early Retirement

If you’re considering early retirement, it’s crucial to have a solid financial plan in place. Here are some steps to help you prepare:

1. Calculate Your Retirement Needs: Determine how much money you’ll need annually during retirement. Don’t forget to account for inflation and potential health care costs.

2. Maximize Your Savings: The earlier you want to retire, the more money you’ll need saved up. Consider aggressive saving strategies and look into investment options that offer good returns.

3. Minimize Debt: Try to eliminate as much debt as possible before retiring, as it can significantly eat into your retirement savings.

4. Plan for Healthcare: Early retirees may not be eligible for government healthcare benefits until they reach a certain age, so it’s essential to have a plan in place.

5. Diversify Your Income Streams: Relying solely on savings might not be enough, especially if you plan on living an active lifestyle during retirement. Consider creating multiple income streams like rental income or part-time work.


The age at which one chooses to retire early is a personal decision that depends on various factors like financial stability, health status, personal goals, and job satisfaction. While the idea of retiring early may seem appealing, it requires careful planning and significant financial discipline—especially if you’re aiming for extreme early retirement under the FIRE movement. Regardless of when you choose to retire, the key is to ensure that you have a solid financial plan in place to support your lifestyle and meet your retirement goals.