Plan for the "gap"
For those planning on retiring earlier, you may need to account for how you are going to fund your retirement until you can begin withdrawing savings from your retirement income sources. For instance, most employer-sponsored retirement plans impose an additional 10% tax penalty on any funds withdrawn before age 59½, and the minimum age to begin receiving Social Security benefits is 62.
Health care is also a consideration when retiring early because you will not be eligible for Medicare — the standard health care coverage for retirees — until you turn 65. Interim coverage such as bridge health care insurance or even COBRA coverage through your employer are options you may want to investigate.
