early retirement
The pros and cons of early retirement
Retirement is a milestone that is often the byproduct of decades of hard work . Though a growing number of working professionals have no intention of ever retiring , the vast majority of adults look forward to the day when they can call it a career .
The prospect of early retirement is enticing to millions of people . Though retiring early may seem like a no brainer for individuals in position to do so , a careful consideration of the pros and cons of early retirement can ensure people make the best decision .
Benefits of early retirement
For many people , early retirement is less about finding a beach to relax on and more about pivoting to a second career . In fact , a recent report from the Employee Benefit Research Institute indicated that 74 percent of workers plan to get a new job after they retire . In such instances , early retirement is often about turning a long-time passion into a second career . That can help adults achieve a lifelong dream , making it one of the better reasons to retire early .
Another advantage to retiring early is the chance to spend more quality time with family . One study from the American Psychological Association found that more than half of working professionals now check work emails after work hours , including on weekends . Forty-four percent even check their email while on vacation . Early retirement enables individuals to escape that round-the-clock career commitment , affording retirees a chance to spend more unfiltered quality time with the people they love most .
Retiring early also provides an opportunity to escape a daily grind that many people have indicated has become increasingly burdensome in recent years . The
2021 Work and Well-Being Survey from the American Psychological Association found that 79 percent of the roughly 1,500 adults surveyed had experienced work-related stress in the month prior to participating . Work is a leading cause of stress for many people , and stress has been linked to a host of health problems . Individuals who can retire early can benefit from less stress in their lives .
Disadvantages to retiring early
Retiring early can seem like a dream , but it could turn into a nightmare for people whose finances aren ’ t as robust as they need to be to support a lengthy retirement . One report from the Boston College Center for Retirement Research found that around 50 percent of working families face a significant decline in their standard of living during retirement . Life expectancy has been on the rise in developed countries since 1900 , so retiring too early carries some significant financial risk for people who have saved but not necessarily saved enough .
Retiring early also could make people more vulnerable to cognitive decline than they would be if they keep working . One study from researchers at Scotland ’ s University of St . Andrews found that people who wait until age 67 to retire experience less cognitive decline than people who retire prior to turning 67 .
Out-of-pocket medical costs are another significant disadvantage to retiring early . Employer-sponsored medical insurance tends to cost individuals less than private plans , which is a significant consideration for individuals at a point in their lives when they may need to visit doctors more often .
Early retirement has its advantages and disadvantages . Individuals must consider both to make the best decision for them .
20 • SENIOR LIVING 2022