Following the news that bull markets make people more likely to retire -- and that doing so can put their future finances in danger -- it's important for savers to review how market returns can affect their retirement planning.

On one hand, it's understandable why more retire during strong market conditions: People have a retirement savings target in mind, and bull markets can help more people reach those targets. The problem is, given the normal cycles of market returns, retiring at a peak could leave you vulnerable to the next bear market.

Ideally, you shouldn't let recent returns influence your retirement planning too much. Keep these six things in mind when a run of good returns has you thinking you should retire a little early.

1. Don't skimp on contributions if you get ahead of target

When market returns are strong, people tend to feel they can skip contributing to their retirement plans, because those returns seem to be adding to the portfolio fast enough. Market returns need to be viewed as cyclical, so good returns one year may have to make up for disappointing returns the next. Meanwhile, savings rates should be based on your long-term needs, not the current value of your portfolio.

2. Remember that an early retirement requires more funding

If you hit your retirement savings target a little early, you might need a higher target to account for the fact that if you retire early, you'll have to live off those savings for a longer time.

3. Be sure to account for low interest rates

One of the biggest changes in retirement assumptions in recent years is the fact that interest rates, from bank rates to bond yields, are nowhere near their historical norms. That means it takes a bigger portfolio to produce an adequate amount of retirement income.

4. Don't retire as soon as your portfolio reaches your target

Link:
Six Ways to Bear-Proof Your Retirement