Who wouldn’t love more control over how they spend their days?
Retiring early can make that happen sooner rather than later, but it’s also a huge decision.
If you’re in a position to retire early — or if you aspire to find yourself in this position one day — how do you know exactly when to make your move, or if you even should?
Here are three big considerations to keep in mind:
Finances First
Experts recommend having all debts paid off, understanding your projected retirement expenses and income, and being free of financial obligations to children before permanently leaving work.
You’ll also need to provide your own health insurance and cover more of your health expenses since, if you retire early, you won’t get coverage through work anymore and you won’t be old enough for Medicare. For income, you’ll need savings and investments that you can access without penalty if you’re younger than 59½.
A Brand-New Routine
Working tends to create familiar daily routines, valuable relationships with colleagues and a sense of pride and purpose. Leaving the workplace changes all of this, and your new reality might take some getting used to.
It’s important to have a solid plan for how you’ll spend your retirement once you get past the honeymoon phase. Do hobbies and social activities already bring you a sense of purpose and connect you with others? Will you get enough fulfillment from those activities?
Planning for the Unknown
Don’t be shy about reaching out for help with your early retirement planning. We can do the math for various scenarios like different living expenses, health outcomes and market returns.
It’s never too soon to start getting ready for early retirement. Want to start talking about your future? Reach out today.