A practical, 5-step checklist for early retirement. Savings, health insurance, risk protection, taxes, and lifestyle planning—plus a 10-minute readiness quiz.
Kids are sometimes why people want to retire early or shift to part-time work, so they can spend more time while their kids are still at home.
Is that part of what you’re thinking about?
A few additional things to consider when planning to retire earlier with kids:
- If your kids are still living at home, their expenses are your expenses. That needs to be reflected in your cash-flow planning (Step 1).
- Many parents want to have college largely funded before retiring. Regular contributions to a 529 plan can help, but timing matters. College costs often hit right when early retirees are newly out of the workforce, which can push you toward a lower withdrawal rate, a larger cash buffer, or some light income during those years.
- You may also want to leave a bequest to your children. That’s optional, of course, but it does affect how much you need to save and how conservatively you plan.
Do you have kids? How would that change this calculus?
Hi Sumanth, great question.
Kids are sometimes why people want to retire early or shift to part-time work, so they can spend more time while their kids are still at home.
Is that part of what you’re thinking about?
A few additional things to consider when planning to retire earlier with kids:
- If your kids are still living at home, their expenses are your expenses. That needs to be reflected in your cash-flow planning (Step 1).
- Many parents want to have college largely funded before retiring. Regular contributions to a 529 plan can help, but timing matters. College costs often hit right when early retirees are newly out of the workforce, which can push you toward a lower withdrawal rate, a larger cash buffer, or some light income during those years.
- You may also want to leave a bequest to your children. That’s optional, of course, but it does affect how much you need to save and how conservatively you plan.