Retiring at 55 is becoming more and more a reality for thrifty and ambitious young Americans and most people only think of it in terms of the "pros" but experts warn that there are indeed some very real "cons" as well.
With the average age span of U.S. citizens ever growing (86 for women and 81 for men) it is really quite amazing that so many are trying to retire early. A young person who is entrepreneurial and a savvy investor can make this retirement age a reality but there are some things to keep in mind before you actually pull the plug on your career.
First, we will examine the pros of an early retirement. First, you can actually pursue a hobby or job that involves your passions. For most of us our job is just a job. The experts go as far to say that 70% of us hate our jobs. Retiring in your 50's allows you a chance to do what you love.
Second, bye-bye stress. Job related stress is a very real phenomenon, in fact , it can wreck your health. Retirement is truly a remedy for this condition.
Third, no more windshield time. I have a love one who lives and works in Tampa, Florida. One of the perks of their job is that they can work from home. If you have ever driven in Tampa you know that this is a real benefit. Early retirees don't have to deal with this nightmare ever again.
Fourth, follow your entrepreneurial dreams. When we are working our jobs we just try to pay the bills and keep our heads above water. There is no time to take risks and launch a business. Retirement provides the safety net to take the chance and start your own side hustle.
Fifth, enjoy life while your health is still relatively good. Sadly, when most people retire at 66 or 70 they find that they are in the beginning stages of failing health. Early exit from the daily grind gives you a shot at enjoying your leisure days in health.
Now for the cons. First, if you retire at 55 you are leaving your job at your peak earning years and this will have an effect on the amount of Social Security you may collect on a monthly basis. Remember that Social Security determines your benefits based on your best earning years.
Second, you can't access your retirement account until age 59 without a stiff penalty. If you have enough regular savings then this is no problem. You also can't draw Social Security until 62!
Third, you might get bored out of your gourd as my mother used to say. Boredom is a real problem for those who retire early without a clear cut plan for what you intend to do with your time.
Fourth, your skill set becomes outdated and you might have a hard time re-entering the workforce in the event that you have to or just want to return.
Fifth, and this is a big one! Health insurance costs are going to be Biblical in proportion to your income unless you qualify for some Obamacare subsidies. You better explore the costs of healthcare before you take the plunge into early retirement.
Those are some considerations that you should ponder but it doesn't hurt to ponder and my hat is off to those who can make this dream come true!
With the average age span of U.S. citizens ever growing (86 for women and 81 for men) it is really quite amazing that so many are trying to retire early. A young person who is entrepreneurial and a savvy investor can make this retirement age a reality but there are some things to keep in mind before you actually pull the plug on your career.
First, we will examine the pros of an early retirement. First, you can actually pursue a hobby or job that involves your passions. For most of us our job is just a job. The experts go as far to say that 70% of us hate our jobs. Retiring in your 50's allows you a chance to do what you love.
Second, bye-bye stress. Job related stress is a very real phenomenon, in fact , it can wreck your health. Retirement is truly a remedy for this condition.
Third, no more windshield time. I have a love one who lives and works in Tampa, Florida. One of the perks of their job is that they can work from home. If you have ever driven in Tampa you know that this is a real benefit. Early retirees don't have to deal with this nightmare ever again.
Fourth, follow your entrepreneurial dreams. When we are working our jobs we just try to pay the bills and keep our heads above water. There is no time to take risks and launch a business. Retirement provides the safety net to take the chance and start your own side hustle.
Fifth, enjoy life while your health is still relatively good. Sadly, when most people retire at 66 or 70 they find that they are in the beginning stages of failing health. Early exit from the daily grind gives you a shot at enjoying your leisure days in health.
Second, you can't access your retirement account until age 59 without a stiff penalty. If you have enough regular savings then this is no problem. You also can't draw Social Security until 62!
Third, you might get bored out of your gourd as my mother used to say. Boredom is a real problem for those who retire early without a clear cut plan for what you intend to do with your time.
Fourth, your skill set becomes outdated and you might have a hard time re-entering the workforce in the event that you have to or just want to return.
Fifth, and this is a big one! Health insurance costs are going to be Biblical in proportion to your income unless you qualify for some Obamacare subsidies. You better explore the costs of healthcare before you take the plunge into early retirement.
Those are some considerations that you should ponder but it doesn't hurt to ponder and my hat is off to those who can make this dream come true!
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