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Think retiring early is out of reach because you don’t make a six-figure salary? It takes careful planning and discipline, but that doesn’t mean it’s impossible.
According to the 2025 EBRI/Greenwald Research Retirement Confidence Survey, about 60% of American retirees entered their golden years before turning 65, with a median retirement age of 62.
Still, only one in 10 Americans retired before 55 — proving it’s much harder the younger you are. So if you want to join those younger retiree cohorts but don’t have a high income, you’ll likely need to make some smart money moves (and a few sacrifices).
Here are practical steps you can take today to get on the road to retiring early.
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While budgeting may seem too boring to be ‘savvy,’ it truly is a key financial tool. It’s a powerful way to understand your current finances, rein in your spending if needed and then shape your financial plan accordingly. Tracking your expenditures against your budget can even reveal new obvious avenues for saving.
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The budgeting process is also a great opportunity to make sure you’re paying the best rates for monthly necessities, like insurance.
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After tracking and assessing your budget over a few months, you can use that data to estimate your future retirement budget — setting a clear target. You’ll want to review this retirement budget periodically and make adjustments as needed.
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To join the Financial Independence and Retire Early (FIRE) movement and retire in your 30s or 40s, you may need to save more than the 15% that’s often suggested. When it comes to retiring early, that number might end up much closer to 75% of your income.
Regardless of the specific retirement age you’re aiming for, you’ll need discipline to reach any early retirement goal. Automating your investments is an easy way to make that process happen in the background, without much extra thought.
You can make 401(k) contributions directly from your paycheck, but you can also set up direct deposit into a high interest savings or investment account.
There are several apps that can help you automate your investments, including Wealthfront Investing.
Their “set it and forget it” approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time. Wealthfront offers up to 17 global asset classes to help diversify your portfolio.
If you open a Wealthfront account today, you can snag a $50 bonus.
It will be difficult to retire early if you’re carrying a large balance on a credit card or other high-interest debt. The savviest move is to not carry a balance — but life happens, so if you do have a balance, paying it down should be your No. 1 financial priority (along with building an emergency fund).
Paying down a credit card with a 20% interest rate delivers an immediate 20% return, so it might make it easier to do if you think of it as investing.
While you want to pay off high-interest debt as quickly as possible, you might want to consult with your advisor before accelerating your mortgage payments. If your mortgage rate is lower than your expected investment return, you may want to invest the money instead, but this decision will depend on your circumstances and preferences.
Your biggest asset is likely your stream of future earnings, so to retire early you’ll want to maximize this asset.
While you could consider a side hustle or second job, look first at your current job and evaluate whether your time and energy might be better spent on developing your career to increase your future income stream. Consider whether you could make more from extra sales, a raise or a promotion — or if it makes more sense to take on a side gig.
Yes, retiring early takes planning and dedication, but not necessarily a six-figure income.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
