Get the MONEY situation right. Have it checked by a professional. Get it rechecked if you want to.

  1. Calculate your net worth: In the Indian context I am assuming that you have repaid all your loans. So your net worth is just a list of all your assets. Ignore the one house in which you are staying.
  2. Estimate how much money you will need. This is just an amazing guess work, but might as well make this guesstimate. Factor everything in, from vacations, functions, festivals, home repairs, replacement cars, one house, etc. If you don’t have a good medical cover, make allowances for what it is likely to cost. Work out all expenses as a monthly rate. Add contingencies, and see whether your proposed income match it? If not, you are trying to retire too early. Now you have some work to do. Either increase your retirement income, or cut your spending, or postpone your retirement.
  3. Consider if there are any risks to your pension, if any.
  4. One large PSU is not paying the hospital bills on time – so the retired employees are not getting good service from the hospitals which are supposed to provide good medical care.
  5. How long will your money have to last? If you live into your 90s will your money be ENOUGH?
  6. Do some research on Long Term Care needs. Estimate costs, if it scares you, you are not ready for retirement – financially.

Get the Activities Right:

What are you planning to do after you retire? If you have been a workaholic you may not know what you will do once you retire. Consider doing part time work, if the full time work is boring. Consider free lancing if you have some special skills. Take up some foreign assignment – but retiring because your job is boring makes no sense. Maybe you just need a 2 week break not a 4 decade retirement!

You (and your spouse), have done all your numbers, have the numbers reviewed with your financial adviser. You know you’re going to be able to use your time sensibly, and live comfortably and the money will last till you turn 104!

  1. Talk to your financial advisor.  Get the money in the right mutual funds, annuities, deposits, ready for when you need it.
  2. Prepare your body and mind for the self created slow-down!
  3. Share your plans with friends and family.
  4. Only when you are very, very, sure, resign and retire!


Would you like to retire early? What will you retire to? Comment below!

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  1. Cost of replacing house hold items and transportation like car,bike every 5-9yrs is tough to estimate even with assuming we’ll downgrade.

    Finding it every calculation we miss or overlooked something. Is it possible we get into some kind of pseudo test like banks do, where we test drive for 3-4 yrs before actual plunge ?

  2. I volunteer with angelxpress. I write and translate. I’m preparing for a major trek. I have been learning important prayers.

    But I had my household hisaab from 2008 to help estimate.

  3. Sir, I wanted to retire from the day I started working (I am a Sales professional- Hope you understand). But thanks to you, your articles have made me a bit wiser.
    I am in wealth accumulation phase and hopefully after 5 years money will not be my only motivation anymore. Being a utilitarian and minimalist will help.
    Still, I will continue to work till I can. Although I might change my profession at that stage….something more fulfilling. Something that allows me to spend more quality time with my family & friends. That’s my only aspiration.

  4. This article read in conjunction with the earlier article of ” Top reasons to retire” , is confusing– most people have some sort of ailment(stress-related, mostly) or the other when they are into their fifties, so it becomes difficult to take a call whether total health or wealth should get priority — the choice should not be between a) retiring early and outliving the corpus, and
    b) retiring late, but in poor health;unable to enjoy the sunset years
    — maybe the middle path is to switch to a job which pays less but not stressful, not sure how many of us willing to choose this option.

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