Be realistic about whether you can afford to leave the workforce at a younger age. Retiring early generally costs more than anticipated.

Generally with pension plans, years of service may be reduced, salary increases may be foregone, and there may be an actuarial reduction for each of the years in which an employee leaves the workforce early.

With a defined contribution plan, investments may be tapped earlier than anticipated foregoing money that could have been earned for the future.

Health insurance is another big consideration. Make sure to factor in health insurance premiums when deciding on early retirement.

In addition, ask yourself the following questions regarding early retirement:

1. Is early retirement financially practical in the first place?
2. What sort of lifestyle is desired?
3. Is there enough money invested? If you are at least 62, evaluate pension benefits, plus income from Social Security, and whatever retirement nest egg has been accumulated, to determine if there is enough to live on.
4. What are the chances of getting another job?
5. What benefits can be kept?