Alan love was virtually a life-long company man at a California clothing manufacturer, working his way from entry-level to management and earning promotions, higher salaries, and longer hours along the way. Alan and his wife Willow were scrupulous savers, and by last summer, they figured they could afford to leave the rat race. So Alan walked into his boss's office and announced his retirement. But six weeks later, life threw him a curveball: Willow found out she was pregnant.
Unusual for a retiree, perhaps, but not as surprising as it sounds: After all, Alan is only 44, and Willow is 37.
The Loves might be an extreme case, but they're part of a nationwide trend toward retirements that start earlier and last longer. In 1950, the average American retirement lasted 8.1 years; by 2020, that interval will stretch to 20 years. And many retirees are already cracking the 30-year mark — in some instances, spending more years in retirement than they did working. Of course, retiring early can be a mixed blessing. Vanishing pensions and uncertainty about health coverage and Social Security make the financial outlook hazy for many. On the plus side, today's retirees are healthier and more vigorous than their predecessors, and in general they're more willing to try new pursuits in later life. With all this in mind, SmartMoney canvassed the experts to gather the best advice about leaving full-time work behind, early and on your own terms.
Calculate Your Needs
If you want to retire early, it pays to sweat the details about how much money you'll need. Start with a thorough inventory of your savings, future benefits and income. How much do you have invested? Does your company offer retirees any pension or health benefits? (To see how much you can expect from your current 401(k) plan, click here.) How much Social Security will you receive? Are you expecting an inheritance?
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