There are many people working around the world as anything from an accountant to a travel agent who love their job and appreciate going to work in the morning. But for the rest of us, one of the big dreams is to be able to retire early and just enjoy each day by doing whatever you want. You might visit your kids more, travel, or just volunteer within your own community. If you think that only the very rich are able to retire before their sixtieth birthday than you should read on. You might be able to shave at least a few years off your time in the workforce.

The secret to retiring early is planning ahead as much as possible. You might not think that you need to start paying into an investment portfolio or 401(k) accounts until you're already established at work and have a home of your own, but the sooner you can get into the habit of saving for your retirement the better off you will be. Most people consider retiring early to be leaving behind your job between the ages of 50 and 55. With the average life expectancy at around 75 you need to prepare for 20 to 25 years of living off of these savings.

Another thing to do is make sure that money is still coming in during your retirement at a reasonable rate. Some people have a pension that's going to last them through many years while they're enjoying a winter home in Florida. But if you know that you're not getting enough from that to pay all of your expenses than you might want to look into some investment options. For example, if you buy rental property and hold it into your retirement this will provide income as long as the properties are filled.

Smart financial planners will recommend that you put away between ten and twenty percent of your income towards savings and investments for retirement. If you do this right from when you're out of school and starting a job you might find that you have enough to retire by the time that you're fifty. You can consider purchases on property and other equity as going towards your retirement investments.

Before you start planning for retirement you should make sure that you understand how your pension, Social Security works and calculate how long you will be paying for any large mortgages. For example, Social Security bases how much you get on the work that you did during your highest-paying 35 years in the workforce. If you work less than 35 years, that time will be counted as you having zero income. This will certainly lower how much you're getting.

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