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The Pros and Cons of an Early Retirement

Early Retirement-

The traditional age for retirement has always hovered around 65 then it began to drop toward 60. However, the latest trends suggest that this age may be getting pushed forward even more to around 70 to 75 years. There are reasons why people simply do not want to stop working after 60 and it has got a lot to do with the ovarall financial condition of the economy. In addition, even those who are financially sound may find it hard to sit around after retirement doing nothing. No one likes to sit still and do nothing throughout the day, and if one does not have sufficient hobbies, money and pleasures to pursue post retirement, then they will get bored soon enough.

Some experts say money is the number one reason people continue working well after 60. Some older folks even take up part-time occupations or small jobs, contracts, become consultants or start a business of their own. These take less time and may provide just enough income to keep the ball rolling, provide new stimulation or a creative outlet.

Here are the top five reasons to Avoid Early Retirement:

  1. Need more savings and retain accumulated incomes.
  2. Want to relive the work life and be occupied all the time.
  3. Continue getting health benefits.
  4. Continue having a sense of purpose and direction in life.
  5. Wish to enjoy life but not at expense of savings.

Then there are a few folks who believe that early retirement is the best of all things. Such people plan all their life to retire at exactly 60 years of age (or even much earlier.) They have been saving funds, preparing insurance policies and booking world tours for retirement. Often these people were involved in jobs they didn’t enjoy or want to reduce the stress in their lives. Often they want more than nine to ten years after retirement to enjoy life.

Accordingly, the top five reasons for people to take up early retirement are:

  1. No more office work and no more sluggish daily routines.
  2. Freedom to do whatever one really wants.
  3. No need to move around the world on the whims and fancies of the employer (or the opportunity to see the world and not be stuck at home).
  4. Better mental and physical condition, more vitality.
  5. Chance to spend the end years together with loved ones.

Everyone has their own ideas regarding retirement. Some are caught up in their work life and enjoy it while others wish to retire and spend quieter time elsewhere. It all depends, in the end, on the individual. The biggest pro therefore for early retirement or we say in Denmark efterløn (early retirement benefit) is freedom and for late retirement is financial stability. You decide what entices you more.

See Also:

High Performance Savings Accounts

Term vs. Whole Life Insurance – What Should You Choose?

Annuities: a Great Way to Fund Your Retirement

Do you know what you need to retire?

Retirement Planning- Start Early

The Downside of Using a Financial Planner

Recommendations from Amazon:

How to Retire Happy, Wild, and Free: Retirement Wisdom That You Won’t Get from Your Financial Advisor

The AARP Retirement Survival Guide: How to Make Smart Financial Decisions in Good Times and Bad

Worst-Case Scenario Pocket Guide: Retirement (Worst-Case Scenario Pocket Guides)

What Color Is Your Parachute? for Retirement, Second Edition: Planning a Prosperous, Healthy, and Happy Future