Nicole Spector

Sat, Jun 28, 2025, 7:01 AM5 min read

Many of us want to retire early and many of us, regardless of our wants, are forced to due to health-related issues or job loss. It’s best to plan on early retirement, even if you plan to keep working past the full retirement age (66 or 67, depending on when you were born).

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How can the middle class best plan for an early retirement? Consider these six expert-recommended moves to make ASAP.

Anybody who wants a life that isn’t gripped by ever-worsening financial crises needs to be laser-focused on eliminating high-interest debt (the kind that comes with credit cards). But middle-class folks planning an early retirement really can’t afford to delay taking action here. Make eliminating high-interest debt a top priority.

“Before accelerating your savings, it’s critical to address any high-interest debt, such as credit card balances or personal loans,” said Stoyan Panayotov, CFA, wealth advisor and founder at Babylon Wealth Management. “Carrying this kind of debt can significantly hinder your ability to build wealth, as the interest charges often outpace potential investment returns.”

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It’s important to be focused on saving for retirement starting the minute you start earning money, but “saving” is a pretty vague term. You need to think about how you save, too.

“For the middle class, building wealth across three types of accounts can give you flexibility, control and serious tax advantages,” said Trevor Houston, CEO at ClearPath Wealth Strategies, LLC.

Those three accounts:

• Tax-deferred (401(k), IRA)

• Tax-free (Roth IRA, HSA, cash value life insurance)

• Taxable brokerage

“Retiring early means you’ll need flexible access to your money, especially before age 59½,” Houston said. “Having the right mix of accounts gives you more control over how and when you withdraw funds, no matter what tax rates look like down the road.”

How many companies have you worked for where you had an active 401(k) plan? What did you do with the investments in those plans when you changed jobs? Make sure you keep track of this money and ensure it’s still performing optimally.

“Yes, you can leave it where it is, cash it out (with consequences) but when you bring them all together into one IRA or new employer plan, you’re not just getting organized, you’re taking back control and setting yourself up for a smarter, more strategic future,” Houston said. “Some financial institutions provide cash incentives to customers who transfer or roll over their funds. We’re talking a few hundred to even a few thousand dollars in real incentives just for consolidating.”