Even with rising costs and longer life expectancy, it is still possible to leave the rat race early and live comfortably. It does, however, take some careful long-term planning. Here are 20 tips that will help you get on track to retire at 50.
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1. Hire a Financial Planner
A financial planner can look at your financial situation and your lifestyle and help you work out an early-retirement strategy. He or she can give you advice on how to save money, how to make more money and how to invest.
It's really never too early to start planning ahead. Here are 12 costly mistakes that can ruin your retirement.
It's really never too early to start planning ahead. Here are 12 costly mistakes that can ruin your retirement.

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2. Cut Your Spending
If you spend less now, you’ll have more money to put away for your retirement nest egg. Avoid making unnecessary purchases, downsize your lifestyle and live frugally.
Plus, make your nest egg go even further with the top 20 best places to retire in Canada.
Plus, make your nest egg go even further with the top 20 best places to retire in Canada.

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3. Start Saving Early
The earlier you start saving, the more money you’ll have in the bank by the time you retire. It also allows you to save a smaller proportion of your income every month if you have to. Ideally, you should start saving regularly as soon as you start your first job.
And, if you're dreaming of living the good life after retirement, check out these 20 cheap and stylish global retirement spots.
And, if you're dreaming of living the good life after retirement, check out these 20 cheap and stylish global retirement spots.

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4. Have a Savings Goal
Setting a savings goal, for example, that you want to save a fifth of every paycheque or that you want to save $5,000 by the end of the year, is a good way to motivate you to start saving. For extra motivation, you can also share your goal – and your progress.
You may also like: 15 retirement tax tips that'll save your nest egg.
You may also like: 15 retirement tax tips that'll save your nest egg.

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5. Automate Your Savings
An easy way to save is to automate it. Arrange an automatic transfer from your salary into your savings account as soon as you get paid, and you won’t even have to think about saving. Another option is to choose a round-up bank account or online app where your debit-card purchases are rounded up and the difference goes into your savings account. Just please, don't try any of these ridiculous ways people try to save money.

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6. Save Windfalls
Resist the temptation to spend windfalls such as an inheritance, prize money or a bigger-than-expected tax return. Instead, put that money into your savings account to earn you more interest.
These are the most important things to keep in mind if you want to retire early.
These are the most important things to keep in mind if you want to retire early.

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7. Maximize Your Savings
Get a savings plan that will maximize your money. For instance, open a high-yield savings account that pays more interest.
Earn more as you go with this list of 20 ways to earn money while you're sleeping.
Earn more as you go with this list of 20 ways to earn money while you're sleeping.

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8. Buy With the Long Term in Mind
When you buy something, make sure that it will last a long time, will be reliable and is affordable. This way you won’t have to buy the same thing again soon.

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9. Cut Services You Don’t Use
You may be paying a lot of money for services you don’t actually use. If you haven’t been to the gym in months or don’t read the newspapers and magazines that get delivered to your door cancel those subscriptions and save the money instead.
Some employers offer great discounts, so make sure you utilize all the perks your company offers. Check out the 30 best companies to work for in Canada.
Some employers offer great discounts, so make sure you utilize all the perks your company offers. Check out the 30 best companies to work for in Canada.

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10. Pay Off Your Debts
The longer it takes you to pay off your debts, the more interest you will be charged and the more you’ll eventually end up paying. Make a concerted effort to pay off your debts as early as possible.
In fact, paying off debt is just one of 20 ways you can retire with less money.
In fact, paying off debt is just one of 20 ways you can retire with less money.

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11. Avoid Going Into More Debt
The more debt you have, the more difficult it becomes to pay off everything you owe and have enough left for saving. Cut up your credit card and get into the habit of only buying things you can afford to pay for in full.
With just a few simple lifestyle tweaks, you can easily save $1000 a month.
With just a few simple lifestyle tweaks, you can easily save $1000 a month.

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12. Find a Better Paying Job
A crucial step in preparing for early retirement is to increase your income. If your job doesn’t pay enough to support your lifestyle and let you put away savings, consider finding one that pays better.
These are the highest paying in-demand jobs in Canada right now.
These are the highest paying in-demand jobs in Canada right now.

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13. Create Extra Sources of Income
Start creating extra sources of income. These can be passive sources, for instance by investing in properties that you then rent out, or they can be projects you do on the side, such as making and selling things for extra cash.

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14. Invest Wisely
Investing your money can bring in good returns but a bad investment can cost you your savings. Before you invest your hard-earned money, do your homework and speak to a reliable financial advisor about the best investment options for you.

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15. Downsize Your Home
As you approach the age at which you want to retire, it’s a good idea to start downsizing your home. You don’t need four bedrooms if the kids have left the house, so sell your large family home at a profit and move to something smaller and cheaper.

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16. Move to a More Affordable Location
You can make your retirement income go further by living in a more affordable city or town. It’s also worth considering moving abroad to a cheaper country, such as Mexico.

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17. Find Out About Taxes and Penalties
Taxes can take a big chunk of your income, so ask a financial advisor about the best ways to invest your money more tax-efficiently. Also, find out what the penalties are for withdrawing your retirement savings early, so you can plan accordingly.

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18. Teach Your Children Financial Responsibility
You’ll never be able to save money if you keep having to buy your children the latest gadgets or fashions or have to bail them out every time they’re in a financial pinch. Teach them about financial responsibility and how to work with money. This will also help them start planning early for their own retirement.

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19. Minimize Your Children’s Student Debt
Student debt can take a lifetime to pay off and you may be called on to help your kids out, to your own financial detriment. Encourage your children to minimize their own student debt, for instance by going to a more affordable college or working toward scholarships.

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20. Train For Part-Time Post-Retirement Gigs
Once you’ve retired, you may want to take on a part-time gig that will give you something to do, get you out of the house and supplement your income. Find your passion and take a training course for it. For example, become a qualified yoga instructor, massage therapist or translator or take a photography course.
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