early retirement may sound appealing. But like most things, timing and planning are essential.

Assuming that you have planned your retirement with the help of a professional financial advisor, you should know how much money you will need to support your future lifestyle.

If your retirement income won't suffice, you may need to consider part-time work. Or, you may simply want to keep a toehold in the working world. If you plan to work and collect a state pension, check how much you can earn without jeopardizing both your current and future benefits.

Retirement Accounts 

Many employer-funded pension plans specify an age when an employee is entitled to retire with benefits. Retiring earlier than your plan allows could mean having to fund your early retirement with another source of funds. Retirement accounts such as IRA and 401(k) plans are not usually available until you reach age 59 and a half. Israeli work-related plans also have a minimum age for distribution, and the projections on your annual statements are often made with later retirement figures. Taking the money earlier could mean paying substantial penalties and/or receiving lower payouts.

Don't Give Up On Early Retirement 

Just because the financial weight of stopping to work may discourage you, don't give up on a dream completely. Many people switch careers later in life, and as they do it, they take a mini-retirement. Even though stepping out of the workforce for a few months costs money, it can also give you a new view on a life, a well-deserved break, and the chance to see what retirement feels like. Maybe after sitting at home for a few months you will begin to miss the daily work routine. On the other hand, you may enjoy it so much that you will be willing to live a lower-cost lifestyle in exchange for not having to work. The theoretical vs. actual worlds of personal finance are, in fact, quite different. Take the time to figure out what works for you.