Retiring early sounds like a great idea to many people. However, there are some drawbacks to making this decision. Here are some of the major pros and cons of retiring early.
Pro: It's Good for Your Health
Retiring early can be a good health move if you suffer from a lot of stress in your job. You may be able to spend more time with family, which will increase your mood and raise your health. A few extra years of income aren't always worth sacrificing this time of freedom.
Pro: Travel
Have you always wanted to travel? Retiring early is a great way to get this done. You'll be able to make a trip before your health begins to fail. Make sure that you have plenty of extra savings that don't dip into your retirement fund.
Pro: Pursue a Passion
Likewise, if you've always wanted to pursue a business or artistic dream, now 's the time to do it before it's too late. Taking off a few extra years can give you some productive time to focus on goals other than your career.
Con: You'll Have to Stretch Your Money
If you retire early, you'll have fewer years to save up income for retirement. The money will need to stretch even longer to support your through your early retirement years too. Before deciding on early retirement, be sure that your savings will last; consult a professional if you need to.
Con: Smaller Social Security
Also, since you'll be paying into social security for less time and collecting the money for more years, your social security payments may be lower than what you were expecting. You can consult an expert to see how your social security payments are likely to be affected.
Con: You Might Not Like It
Finally, don't discount the fact that you might not like being retired. You'll need to work to maintain a sense of purpose and something to keep you motivated each day. Retirement isn't for everyone.
Choosing whether or not to retire is complicated, and each factor will affect you differently than it does everyone else. If you need some help figuring out the brass tacks of retiring, consult a retirement advisor. Not only can the advisor help you review some of the financials of retiring, but they'll be able to help you manage your money if you do decide to go forward with the decision.
Unfortunately, personal finance is not a subject that is widely taught in schools. And yet, to be a functioning adult in society, you need to know the basics about earning money, saving money, taking out loans, paying interest, and so forth. Money makes the world go 'round, and you won't get very far in the world without a basic money education. There are many ways to learn more about money, from reading books to visiting a personal financial advisor. You can start by reading some of the articles on this blog, which address a wide range of financial topics for people in every situation.