Thinking of Retiring Early? 3 Things You Have to Do First.

There are numerous benefits to leaving the workforce at a relatively young age. For one thing, you may be less likely to burn out or experience the health issues that come with spending too many years at a stressful job. Also, retiring at a young age could make it possible for you to travel and do other things that hinge on having good health.

But early retirement isn't something you can rush into. If your goal is to end your career in your early or mid-50s, or even sooner, you'll need to plan for that in advance. Here are three essential things you'll have to do to make your dream of early retirement a reality.

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1. Make sure your savings are on track

It takes a lot of money to be able to retire early. Remember, the 4% rule experts have long recommended for managing retirement plan withdrawals assumes your nest egg will need to last about 30 years. If you retire in your 50s, your money might need to last much longer. So a 2.5% or 3% withdrawal rate might be more suitable.

Here's what that means, though. Say you're on track to retire with $2 million. At age 65, where you can use the 4% rule more comfortably, that gives you about $80,000 in annual income. At 2.5%, a $2 million nest egg gives you $50,000 a year. That may not be enough to cover all of your expenses and do the things you've long wanted to do.

And remember, if you're retiring early, it could be years before you're eligible to sign up for Social Security. So you'll need to run some calculations to make sure your savings can support an early workforce exit.

2. Make sure you have a plan for covering your healthcare needs

Many people get health insurance through their jobs. If you'll be leaving yours, it means you'll need to come up with another plan.

Medicare becomes available to most people at age 65. If you're retiring at, say, 52, you might need more than a decade of coverage you have to pay for out of pocket -- unless, of course, you're able to hop onto a spouse's workplace plan at a low cost.

Before you retire early, research the cost of health insurance. And do not make the mistake of thinking you can do without it, because a single medical event that isn't covered could wreck your finances in a very serious way.

3. Make sure to keep your options open in case things don't work out

You may be excited at the idea of retiring early. But after a few years of not having a job, you may find that you miss working.

That's why it's a good idea to build solid professional relationships ahead of an early retirement, and then maintain those connections once you've left your job. If you spend your last couple of years on the job networking and meeting different people in your industry, that could make it easier to break back in if early retirement doesn't end up working out, or if you feel you want to consult part-time to keep busy or earn extra money.

It's also a good idea to keep your work skills current even if you're retired and aren't getting that paycheck anymore. That way, if you decide you want to go back, you won't be out of the loop.

There's nothing wrong with wanting to retire early. But make sure to plan for it carefully so that it works out well in every regard.

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