If you’ve been stuck with the same working routine for years, then the thought of spending carefree days with yourself or with family as early as possible can be tempting. Although the age of retirement is 66 and 10 months, you can choose to retire early.
Retiring early involves a lot of planning, especially financially. You have to consider your retirement benefits, medical insurance, and your savings. So, before deciding, it’s better to learn about the pros and cons of early retirement. Here are some of them:
Pros
- Healthier lifestyle - Say goodbye to work-related fatigue and stress. Since you now have control over your daily schedule, you can focus more on your well-being by preparing healthier meals and getting enough sleep and exercise.
- Explore new opportunities - If you’ve always dreamt of pursuing a different career or starting your own business, this can be your chance to pick it up. You can also grab education opportunities that you previously had no time for.
- More time to travel and enjoy life - Now that you’re free from work responsibilities, you can travel and enjoy a vacation with your loved ones with no worries. You can even try activities you haven’t done before like hiking, which you might not be able to do with age.
Cons
- Decreased benefits and savings - Retiring earlier means you will have 30% less of the Social Security benefits you’re supposed to have at full retirement age. Besides that, your individual retirement account (IRA) will also have to last longer. That’s why it’s helpful to manage your finances as early as possible.
- You’ll need to find health insurance - When you retire early, you’re also letting go of certain benefits such as health insurance. Since you can only be eligible for Medicare at the age of 65, you have to be ready to purchase your own medical coverage.
- More vacant days off might lead to boredom - Once you’ve gotten used to an everyday routine, it might be difficult to adjust. If you don’t have any specific plans or hobbies to take up your time upon retirement, days might become a little dull.
Call a Wealth Management Expert Today
If you’re thinking of getting early retirement, it’s important to plan ahead. With financial planning, you can better manage your savings and have better security for the future. Learn more about financial planning for retirement by reaching out to our financial advisors at Lamkin Wealth Management in Louisville, KY.