Considering early retirement? It is something most people think about, but it can be expensive.

Let's look at Eric's three retirement scenarios. Depending on what age Eric chooses to retire – 55, 60 or 65, he will need to save the following amounts each month.

If Eric retires at age | 55 | 60 | 65 |

He needs to save the following amount per month from age 25 | $453.84 | $298.91 | $195.34 |

**Assumptions**

- Eric makes $38,000 per year (let's assume his salary never changes).
- Eric started to save at age 25.
- Eric earns an 8% rate of return.
- Eric puts 10% of his income away each year.
- Eric will live until he is 90.
- Inflation is 3%.
- Eric would like a retirement income of $26,600 in today's dollars

(assume no government income).