Chris Adam

Thu, May 22, 2025, 6:16 AM4 min read

Retiring early may seem like a dream come true. And for some, it is — but often not for the reasons you might think. While more than half (58%) of workers retire earlier than planned, it’s frequently due to unforeseen life events, according to research from Transamerica Center for Retirement Studies and Transamerica Institute.

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If you’re looking to retire early and want to do it on your own terms, now is the time to take a closer look at your finances and long-term plans. GOBankingRates spoke with some financial experts to uncover the things your neighbor who retired early probably won’t tell you about their financial strategy.

Dr. Annie Cole, a financial coach and founder of Money Essentials for Women, is a professional on track to retire in her 40s. One of her top tips is to make it a habit to invest early and often, no matter how much you earn.

“Even when I was making $26,000 a year and struggled to pay my rent and buy groceries, I still set aside $20 every month in my retirement account,” Cole said. “Investing is more about habit than the amount. If you can’t get yourself into the habit, you’ll have a hard time ever reaching your retirement goals.”

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Cole also emphasized the importance of increasing your income — including passive income sources.

“I switched jobs every few years, advocated for raises and title changes and created multiple side hustles and businesses of my own to turn my unique skill set into income streams,” she said. “Think about one of your unique skills or strengths that you can turn into a consulting service, freelance offering, online course or ebook.”

In other words, early retirees aren’t just good savers. They’re also active earners who diversify where their money comes from.

Many early retirees are quick to highlight their income streams, like rental properties or dividend-paying investments. But what often goes unspoken is how carefully they’ve planned for risk.

Filip Telibasa, certified financial planner (CFP) and owner of Benzina Wealth, said that behind the scenes, early retirees tend to be very intentional about protecting their financial stability. That includes building in safeguards like insurance coverage, long-term healthcare planning well before Medicare eligibility age, and a solid estate plan.