Planning For Early Retirement | WGLT

Planning For Early Retirement

Nov 18, 2016

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Retirement is the ultimate career goal for many people. Some are fortunate enough to consider early retirement.

During Sound Money, Edgar Norton, director of Illinois State University's Institute for Financial Planning and Analysis said it's best to start early and save often if you would like to retire before age 62.

"Start saving as soon as you can. Hopefully, right out of college you'll get a job and even if you have student loans to pay back, start squirreling away a hundred bucks or so a month, and then increase that as best you can over time," Norton said.

Norton said people entering the work force right now can learn a valuable lesson by watching what their parents or grandparents go through as they retire.

"If they're watching, they'll notice that since 2000, the stock market has not been our best friend, with some rather steep dips and a sluggish economy. So, maybe they'll see the need to save more money," Norton added.

Financial planners say you should try to save at least 15 percent of your income into retirement. Norton said some encourage saving as much as 20 percent.

"For a long time," Norton said, "the average stock market return was about nine or 10 percent. We haven't seen that average in the past decade."