3 signs you won't be able to retire early, even if you have enough saved

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To retire early, there's a lot more to consider than just how much you've saved.

The typical retiree has 20-plus work-free years ahead of them, but early retirees have years — even decades — beyond that to think about, and those years don't come cheap.  

If you're hoping to retire early but are focused primarily on the number in your bank account, you might be missing a few key financial considerations.

  1. You don't know how you'll afford healthcare costs 

If you haven't thought about how much money you'll need to cover healthcare costs as an early retiree, you're probably not ready to leave work. 

Healthcare is one of American retirees' biggest expenses, and it's not getting any cheaper. As most health insurance is tied to employment in the US, paying for healthcare coverage out of pocket can be a huge expense until Medicare kicks in at age 65.

Make sure you have a plan for how you'll afford healthcare. Starting a separate savings accounts for healthcare, like a health savings account, can help you cover these costs in retirement. 

2. You still have lots of debt to tackle 

If you still owe a large mortgage, car payments, or have credit card debt, you might not be ready to retire just yet. In retirement, being debt-free will leave more money for other expenses, like home repairs or other expensive emergencies. 

Paying off debt before retirement is a smart move. Using a debt-payoff strategy, like the debt snowball or avalanche, can be a great way to pay down multiple types of debt. For things like mortgage debt, using tips and strategies from those who have paid off mortgages successfully can help you find a way to get started. 

3. You haven't thought about how to cut back your spending and live below your means

You might need to cut back your spending as you move towards retirement, though that can look different depending on how early you're leaving work. 

If you plan to live on investments in retirement, or even work part-time, you'll need to make sure your lifestyle is appropriate for your new — and likely lower — monthly income.

Tracking your expenses and taking a hard look at your budget can help you identify areas where you overspend, and help you start to cut back. 

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