Planning for early retirement is a task that should be undertaken as soon as possible. Many individuals dream about retiring at a young age, but few realize  their goal, having to work sometimes as much as 50 years before enjoying a life of leisure.

The first step is to figure out what income you will need to preserve your current lifestyle.  All your current non-work expenses should be included,including transportation, food, taxes, insurance, home ownership, utilities, and more.  Be sure to include additional costs, such as increased health insurance, food expenses and cost-of-living increases.

To retire early, one needs to have a significant amount of funds or a source of income and a good plan. Essentially, your funds need to last you through day-to-day costs, emergencies and vacations. Generally if you plan to retire early, you need to have enough bankable, liquid funds that you can live off the interest they provide.

Early pension reductions and withdrawals come with significant consequences. They can include taxes, penalties, investment loss and reduced retirement benefits. Understanding the regulations and consequences can provide valuable retirement planning information.

Since people are now living longer, you must plan your future income based on your expected life expectancy when planning for early retirement.

With a good plan, and a concise way to reach your goal, you may soon be joining the ranks of the recently retired.