Retiring early is something that many adults dream of. If you’ve saved enough that you can afford to quit working now, think it over carefully before you move forward. People who retire early often come to regret their decision.
Benefits of Early Retirement
If you have a stressful job, retiring early can let you enjoy a more relaxed way of life, spend more time with family and friends, and devote more time to hobbies, volunteering and travel. Those kinds of activities can dramatically improve your physical and mental health.
As you get older, your health will likely decline. Retiring at a relatively young age can leave you with plenty of time to travel and explore new hobbies before limited mobility and other medical issues make those things difficult or impossible.
Retiring early doesn’t necessarily mean that you have to stop working. It can be an opportunity to begin a new chapter in your life. If you yearn to start your own business or side hustle, early retirement can give you the time and freedom to make that dream a reality. It can also give you an opportunity to keep earning income so you won’t have to rely exclusively on your savings and Social Security.
Downsides of Early Retirement
Work can be stressful, but it can also provide meaning and fulfillment. If your job is a core part of your identity, suddenly eliminating it from your life can leave you feeling that you lack a sense of purpose.
A workplace can be a place to socialize and build relationships. If you don’t have a social circle outside of work, you might find yourself spending most of your time alone. Social isolation can have devasting effects on both mental and physical health.
Many people retire early so they can structure their days the way they want. Not having someone else tell you when to work can be liberating, but increased flexibility can also be problematic. If you don’t have to stick to a consistent schedule and meet deadlines, you might spend the bulk of your time watching TV, or you might put off starting projects because you keep telling yourself that you have plenty of time.
The amount you receive from Social Security will depend on your age when you begin to collect benefits. If you retire early and collect benefits before you reach your full retirement age, you’ll get less than you would if you waited.
Your savings and Social Security benefits will have to last the rest of your life, but you don’t know how long you’ll live. If you retire early and live to a ripe old age, you might outlive your savings.
Make the Decision That’s Right for You
Deciding when to retire is much more than just a financial decision. Retirement can change your life dramatically and in ways you might not expect. Talk to others who have retired early about their experiences and consider alternatives, such as working part-time.
