The idea of stopping working early continues to be the dream of many Portuguese people, but it requires planning, discipline and a long-term vision. Early retirement, or even paying off your home loan ahead of schedule, may seem distant, but with a solid plan and consistent habits, such as saving, it can become a real goal.
Before thinking about retiring early, it is essential to have a clear idea of your current financial situation. Knowing how much money you have in accounts, savings, investments or other assets is the first step. According to the specialized human resources portal Human Resources Portugal, this diagnosis is the starting point of any strategy and, without it, it is impossible to set realistic goals or evaluate progress.
Set specific goals
After evaluating the starting point, the next step is to define a concrete objective. Instead of “saving for retirement”, the same source recommends setting a goal with a defined amount and deadline, such as accumulating an amount that allows you to withdraw 500 euros per month for 20 years to supplement the public pension. Giving the goal a name, such as “Reform 2044”, can help maintain focus and motivation.
Start small, but start now
It doesn’t take much to start the process. Investing 20 euros can be the first step in a long-term plan. Regularity is more important than the initial amount: always saving, even a little, is more effective than waiting for the “best conditions”. Consistency is the deciding factor.
Monitor and adjust the plan
Reviewing progress is essential to understand if the plan is on track. Monitoring performance allows you to correct deviations and reinforce motivation.
The same source reminds us that, if you have already reached 15% of the objective and are ahead of schedule, it is a sign that the strategy is working. These milestones help maintain enthusiasm and confidence.
Adapt to your reality
Each person has different commitments and income. There are those who have children, credits or higher fixed expenses, and the plan must reflect these differences. It is better to save 20 euros consistently than to set impossible goals and give up. The plan must be realistic and fit your life.
Comparing yourself to others can also generate frustration. Each situation is unique and progress should be judged solely based on one’s personal starting point. Observing others can serve as inspiration, but success comes from moving at your own pace and within your real possibilities.
Time as an ally
Starting early is one of the biggest advantages. The sooner you start saving, the less effort will be required to achieve the same goal. Time multiplies the effect of accumulation and interest, making it possible to achieve a solid fund without major monthly sacrifices.
Strength of habits
Saving for retirement should be seen as a routine, similar to paying your monthly bills. Turning saving into an automatic habit is the best way to guarantee lasting results. Over the years, small amounts accumulate and create a secure financial base, according to .
Difference between Portugal and, for example, the Netherlands
Also know, as a curiosity, that, in Portugal, more than half of workers believe that they will have to continue working after the legal retirement age to supplement their income.
In the Netherlands, the majority invest in private pension funds from the beginning of their careers. The difference lies in financial culture and the awareness that the future is built month by month.
Also read:
