If you have the opportunity to retire early, it’s reasonable to assume you should take advantage of it. Many Americans retire in their 60s, but a variety of circumstances may push their retirement back. Before you actually leave the workforce, consider the impact it will have on the financial and personal aspects of your life. While there are certainly major advantages of retiring early, you should weigh them against certain drawbacks before making a decision. A retirement coach can evaluate your particular circumstances to identify all the potential pros and cons. In the meantime, here's some general information to consider to help you get started.
The Benefits of Retiring Early
The biggest advantage of leaving the workforce while you’re still relatively young is the time it provides to pursue other passions. For some, that means starting a new hobby, like woodworking or painting, while for others, it means traveling. Taking care of your young grandkids is also an incredibly rewarding way to spend your retirement.
For those who don’t love their job, retiring as soon as possible also provides a much-needed reprieve. You won't have to deal with the stress of work, which could end up improving your mental and physical health immensely.
The Disadvantages of Early Retirement
Retiring early could potentially put your financial security in jeopardy if you didn’t plan accordingly. You might have enough to cover daily living expenses like food, housing, and transportation. However, you have to consider other aspects like health insurance. Generally speaking, you won't be eligible for Medicare coverage until the age of 65. Should you retire before then, you will need to consider how your health insurance will be covered up until that point.
Likewise, most people must wait until at least 62 to start drawing Social Security benefits. If you have a life savings and retirement account, you need to evaluate if your funds can cover you and your family, even if an unanticipated expense arises. Work with a retirement coach to evaluate your budget, and come to an agreement on when you can retire.
Another challenge retirees may face is becoming bored. After working and having a set routine for many years, the sudden slowdown of pace may be jarring. However, you can combat this by creating a set workout schedule, taking up new hobbies, and visiting friends and family.
To discuss your situation with a knowledgeable retirement coach, contact Margaret M. Enloe, Esq. This seasoned career consultant serves clients throughout New York City. With more than 30 years of experience, she’s proud to help individuals transition out of the workforce. She also assists those who aren’t ready to retire but want to revamp their entire careers. To see what she brings to the table, visit her website. Send her an email to schedule a session.