When you plan for early retirement chances are that spending a lot of time away from work has not taken place.  Of course there are numerous financial considerations to be attended to, but there are going to be a lot of changes in one’s life, such as where your time will be spent and whom you will spend it with.  Know your personality and plan to structure your activities as much as you feel comfortable with.

If you weren’t self-employed you will need to decide the method for receiving your pension and most retirees choose a monthly payment plan.  Consider if an emergency takes place whether or not your monthly deposit will cover most common emergencies.  In the event that a medical emergency takes place, know what your deductible is for various medical events and have plans for paying it.  Take inflation into consideration and what that will mean 10-15 years down the road for paying bills and buying necessities.

Social Security payment is based on a 35-year earnings average; so if you have earned income for less than 35 years, remember that zeros will be included for those years without income.  The message here is don’t retire too early unless you have other sources of income to make up the difference.

The mortgage on your house deserves planning ahead.  Remember that interest is tax deductible; so pay off credit cards and cars before your house.  If you are 21 years into a 25-year fixed mortgage remember that nearly all of your payment is going into the principal, so there is no benefit to an early payoff at this point.