At this time of year, you and your family may be reaping the benefits of giving and receiving holiday gifts for family members and friends.

But have you thought about giving yourself what some consider the best gift of all – the gift of early retirement? According to the Louisiana CPA Society, retiring early takes meticulous planning and more than a tidy sum of money, but for the truly committed, early retirement is possible.

Here is what you need to do if you desire an early escape from the work world.

Envision Your Retirement Years

One of the biggest challenges retirees face is determining how much they need to save by the time they hope to retire.

The further away you are from retirement, the more difficult the goal is to define. CPAs and other experts say you need somewhere between 70 percent and 80 percent of your pre-retirement income to maintain your standard of living.

This rule of thumb is helpful for starters, but it does not consider that the amount of money you will need in future years depends, to a great extent, on the retirement lifestyle you plan to lead.

Make the Most of Retirement Savings Opportunities

Perhaps the best way to prepare for an early retirement is by taking full advantage of 401(k) plans or other employer-sponsored, tax-deferred retirement plans.

These plans make it possible for you to invest pre-tax money for retirement directly from your paycheck and, as an added bonus, many companies will match part, or even all, of your contributions.

If you are self-employed, you can create your own retirement plan by opening a Keogh account. Even if you work for another company and are covered by a retirement plan, you can use a Keogh plan to shelter self-employment income you may earn from consulting or freelance work.

Traditional and Roth IRAs offer additional opportunities to build your retirement nest egg. Eligible workers can contribute to an IRA even if covered by a 401(k) at work. In certain cases, your IRA contribution may be tax deductible and, in all cases, there is no tax on earnings inside an IRA before the money is withdrawn.

Reduce Expenses to Build a Surplus

Retiring early is an aggressive act that requires not only intense saving, but a serious willingness to live below your means during the wealth accumulation phase of your life.

Are you willing to replace expensive restaurant meals with dinners at home? Are you ready to lower your housing costs by living in a smaller home? The more you can trim from your budget, the more you can invest toward early retirement.

Become an Astute Investor

It is important to be vigilant about the allocation of the assets in your investment account.

The biggest mistake you can make with retirement savings is to play it too safe. The longer you have before you retire, the more you should invest in stocks which offer growth potential.

Stocks may be considered risky because they are more volatile in the short term but, over time, stocks typically outperform other investments.

Your challenge is to achieve a reasonable balance between risk and reward.

Consider Future Insurance Needs

Right now, you probably have health, disability and life insurance coverage under your employer’s group policy.

In fact, your employer probably pays some of the cost of this coverage.

When you retire, at the very least, you will need to replace your health insurance with a new policy that will carry you to age 65 when Medicare kicks in.