The cost of early retirement

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).