It seems like the economy is making it more difficult for people to retire at 65. That's true in

some ways, but what if you had more control over your own retirement than you realized?

What if there were some practical things that you could do that would enable you to retire

closer to 60 instead of 70? While we can't control the economy around us, there are some

practical financial things we can do to round down our retirement age. (See also: Retirement

Planning if You're Under 30)

1. Know What You'll Need to Live On

Simply knowing what your monthly expenses will be during your retirement years can be

helpful when it comes to planning when exactly you'll be able to quit working. Thisworksheet

from Vanguard covers most expenses and will give you a rough estimate of what you'll need

to live on a monthly basis.

Let's assume that currently you're 27 years old and earning around $35,000 per year. We'll

also assume (generously) that between a 401(k), savings, and other assets, you already

have $30,000 saved.

According to CNN's retirement calculator, if you can save 15% of your income, you can retire

at 65. That's $5250 a year or $438 a month at your starting income. (The calculator

assumes that your income will grow at an annual rate of 3.8%, so your savings in actual

dollar amounts should also increase each year.)

Now, if you knock your hopeful retirement age down to 60, 15% of your income suddenly

isn't enough, as it falls quite short of what you'll need. It's not until you're saving 21% of

your income that you make the cut to retire at 60. That's $7350 a year or $613 a month.

So your challenge is to increase your savings by 6%, or $175 a month.

2. Start Early

Starting to plan and save for retirement in any capacity is far easier in your mid-20s than

your 40s or 50s. The earlier you start, the more time your money will have to accumulate

and grow.

In the retirement calculator above, the starting age was set to 27. Knock that number down

to 24, and you can get away with saving 19% instead of 21%.

3. Contribute a Weekly Amount to a Long-Term, Low-Risk Investment

If you start early, contributing as little as $20 a week to a money market mutual fund can

grow to five figures (six if you start with a five-figure initial balance) by the time you're ready

to retire.

Depending on your income and what you're saving already, $20 a week is $80 a month (plus

two bonus weeks every year!), which gets us almost halfway to $175.

4. Save Your Salary Increases After a Certain Point

Our habit is to increase our income and upgrade, always hovering at the ceiling of what we

can afford. If you get to a certain point where you're content with your lifestyle and living

situation, stop upgrading when your salary increases, and instead, save that increased

amount every year as a lump sum for your retirement accounts.

If you've been saving 21% of $35,000 (or even 15%), it's okay to loosen up a little. But keep

your eyes on the prize. (See also: Lifestyle Inflation: The Ultimate Money Trap)

5. Keep Your Living Expenses Low

Keeping your living expenses capped will allow you to put more money aside for retirement

and contribute more to investment accounts or a 401(k).

Stay practical for this one.

Start with a simple budget plan and then carve out unnecessary expenses. You also can

work to lower your utility bill, which can save anywhere from $30 to $100 per month. (See

also: Save $1,500 a Year in 15 Minutes)

6. Pay Off the Principal on Your House

If you can get your house paid off, you'll free up all the money that would normally go to a

mortgage payment every month, which can go to retirement savings. Also, the more

principal you've paid, the more you get to keep when and if you sell your house.

7. Take a State- or Federal-Level Government Job

Those who were born after 1970 and work for the state or federal government have a

minimum retirement age (MRA) of 57, and often retire before 60 with a pension. These

employees are entitled to public employee pension plans, though they vary by state.

8. Max Your 401(k) Contribution

If you have a 401(k) and can afford to contribute more, try to contribute as much as your

employer will match.

If you're able to contribute an extra $1,500 a year total (starting when you're 25) that will

give you roughly an extra $15,000 a year to live on if you want to retire at age 60.

9. Downsize Your Home When the Market Is Good

This can be a particularly good move if your house is paid off and the kids are all grown and

moved out. Assuming the market is good, sell your home at a profit and move into a place

that's smaller, cheaper, and better suited for just a couple people. Odds are that you'll have

a sizeable amount to put away; perhaps even enough to get you through a year or two. (See

also: How to Downsize and Live a Better Life)

10. Move to a State With Lower Taxes

Some states are easier to retire in than others. Property, income, and sales tax should all be

taken into consideration if you plan to move. Reduced taxes mean reduced living expenses

which means your retirement dollars go farther.

11. Exercise and Manage Your Health

One way that you can help to prevent increased expenses in your later years is to exercise

and take care of your body. If you do, you might be able to qualify for cheaper health

insurance plans and be less susceptible to increases in your monthly premiums. (See

also: Live Longer With These Small Healthy Habits)

12. Start a Roth IRA

A Roth IRA is a retirement account that allows you to contribute after-tax money. The appeal

over a traditional IRA is that withdrawals won't be taxed in retirement, and that your

contributions can be withdrawn anytime without penalty (with some caveats), for

emergencies.

13. Work the Tough Hours While You're Young

Working overtime and weekends, and doing what you can to bring in more cash flow is much

easier in your 20s and 30s than when you're older. Work those hours now and put money

away so that you can wind down as you get closer to retirement age.

14. Cultivate a Skill That You Can Do Part-Time in Retirement

Many people work part time in their retirement, if for nothing else as a means to kill time.

Try to plan for a way to continue to bring home a paycheck even after you've retired. This

can mean continuing in your line of work part time or perhaps going from a business owner

to a consultant for another company. It also means your retirement funds won't be your sole

means of support.

Planning Ahead

The most important thing you can do when it comes to securing your retirement is to do as

much advanced planning as you can. While certain things can't be predicted, like exact

living expenses or the cost of insurance, you don't have to wait until your 50s to start

putting money away.

Be prudent (Judicious – Farsighted – Practical) when you're still young, and you'll make an

early retirement far easier.

Do you have other ideas on how to retire early? Let me know in the comments below.