10 Reasons You Should Actually Retire at 62 (If You Can)
Early retirement – retiring at or before age 62 – sounds like a wonderful dream to many people. I’ve been in the workforce for decades. You’ve focused on working with the goal of enjoying the rest of your life on your own terms. But is it too early to get out of the rat race? Retiring at 62 is a little different (good and bad) than retiring later.
If you’re wondering if this is the right thing to do, this article isn’t meant to slow you down.
Is it time to step away from work and retire?
Here are 12 reasons why Why should you go ahead and retire at 62? Or earlier! (And if you want advice on how to achieve this, here it is 37 tips for early retirement.) Or start planning for early retirement now with NewRetirement Planner, the best online retirement planning tool! It’s called a “new approach” by Forbes magazine.
Reason to retire early No. 1: You’ll stay healthier longer
There is no doubt that working and being active can help you stay healthy for much longer than sitting with your feet up. But not every work is good for you; Sometimes it is harmful to your health.
Retiring at age 62 from a stressful job or one with a disproportionately high level of stress can help you retain or regain and maintain your good health longer.
Just make sure you have a plan to be mentally, socially and physically active after retirement. Jobs are good to keep you engaged. But work is not the only way to maintain vitality.
#2: Retire at 62 (or earlier) if you know what else you want to do
Do you have a dream that you have always wanted to achieve, but did not have the time? Maybe you want to write a novel. Have you ever entertained the idea of joining community theatre? Or maybe you’ve always wanted to grow your own food on a farm. Maybe you want to raise sheep, harvest wool, and open a spinning shop.
If you have a real goal and know you’re passionate about it, you have a good, if not great, reason to retire early. (Not sure yet what you want to do? Here are 120 ideas for what to do in retirement.)
They say that no one ever reaches old age regretting the things they have done. What is regretted are the things that were not tried, the opportunities that were not seized, and the dreams that were left dusty and neglected on the shelf. If you’re able, retiring at 62 can give you many years to pursue that dream and truly enjoy it.
#3: Retire early if you can compromise to ensure security
For those considering early retirement, a critical consideration is the willingness to make strategic compromises in the pursuit of long-term financial stability.
Achieving lifelong financial security when retiring early requires a proactive approach and a realistic understanding of the potential trade-offs. While embracing saving can pave the way to financial freedom, it may also require adjustments and sacrifices along the way. Balancing short-term desires with long-term goals, such as traveling or purchasing luxury goods, requires careful consideration and discipline. Additionally, remaining alert to changing market conditions and periodically reevaluating financial plans is essential to adapt to evolving conditions. By embracing flexibility, discipline, and a willingness to compromise, individuals can overcome the complexities of early retirement and embark on a fulfilling journey toward lasting financial security.
#4: Plan to retire early if you’re ready to focus on a goal
Maybe you’re not financially ready to retire early. Should this hold you back? of course not. Especially if you’re ready to focus on a financial goal.
Most Americans are not ready for retirement and may need to continue working through their 60s and beyond. However, don’t let past mistakes of lack of planning and saving hold you back now!
Set a goal to retire early, start analyzing your finances and design a plan to exit the workforce as quickly as possible. The more you make an effort to retire early, the faster you’ll be able to do so. This may entail reimagining traditional concepts of retirement and adopting alternative lifestyle choices to enhance financial security. By adopting a frugal mindset and prioritizing needs over wants, individuals can further increase their retirement savings, ensuring they last throughout their lives. Downsizing to affordable living arrangements, cutting unnecessary expenses, and diligently managing investments are all viable strategies for protecting finances. Furthermore, maintaining a diversified income stream through part-time work or entrepreneurial projects can provide an additional source of income, enhancing financial resilience in the face of unexpected challenges.
The NewRetirement Planner makes it easy for you to get started. Try different scenarios and find your way to retirement as soon as possible.
#5: Retire at 62 if you want to learn new things
If you devote your education and life to a focused career, there may come a point where you want to try something completely new. Retiring at 62 means you have time to pursue your education in a different direction, and you still have time to use and enjoy it.
Adult students usually perform better than their younger counterparts. Even if you’re not seeking a new degree for use in the workforce, learning for personal enlightenment can be rewarding. You may also gain a new skill set to use in starting your own business.
#6: Retire early if you’ve thought about it carefully
Early retirement is not something that can be entered into lightly. Your finances may be sound, but you also need a solid understanding of how your life will change. For example, spending every hour of every day with your spouse can be more stressful than you imagine, especially if you only spent a few hours together each day in the past.
For someone who is used to going to work Monday through Friday, the sudden change of not having a schedule and everything that comes with it can be difficult to deal with. If that’s you, you might want to try a sabbatical instead of early retirement.
However, if you have already done your homework and are waiting for the 62nd hour to arrive, there is nothing holding you back.
#7: Retire early if you don’t need to start collecting Social Security early
The earliest you can start Social Security benefits is age 62. However, just because you can start benefits doesn’t mean you should.
Your monthly Social Security benefit increases significantly for each month and year you delay starting, until full retirement age (about age 67). Depending on your work history, waiting for Social Security to kick in could mean $100,000 or more in extra money over your lifetime.
So, if you’re planning to retire early, it’s best to do so without starting with Social Security.
Start planning for your early retirement…
#8: Retire early if you’re ready to simplify
Living more frugally isn’t essential in retirement, but if you think you can streamline your spending, you can probably retire at 62 or earlier if you really want to.
When you retire, you have the opportunity to prioritize what is important to you and let the rest slip by. Setting priorities can help you reduce your spending levels. This can be incredibly liberating.
#9: Retire early if you have a health insurance plan
When you retire at 62, you still have 3 years to wait before you become eligible for Medicare unless you qualify for disability. You’ll need medical coverage for your vision until you turn 65.
Just because you’re healthy doesn’t mean it’s okay to go without health coverage. If you can get a private insurance policy to fill the gap, you’re all set. If not, you may want to wait a little longer to retire.
Here are some ideas on how to afford health care before Medicare eligibility.
#10: Retire early if you’re debt-free (or nearly so)
Perhaps the biggest indicator that it’s a good idea to retire early is that your debts have been paid off, or are very close to it. Debt-free living, financial freedom, or however you choose to refer it, means you’ve fulfilled all or most of your obligations, and you’ll be under much less stress in the years ahead.
If you’re debt-free and your retirement income is keeping up, there’s little reason to continue working if you don’t want to. This is the time in life that you have worked so hard to get to. So get out there and enjoy it.
NewRetirement’s Planner is an easy way to help you determine if you can retire early. It only takes a few minutes, and what you’ll learn can help you chart your new path.
#11: Retire Early: Time is more important than money
By retiring early, individuals reclaim their most precious resources, enabling them to devote them to endeavors that align with their passions, values, and personal growth. Instead of being tied down to a demanding career, early retirees are free to explore new interests, spend quality time with loved ones, and prioritize experiences that enrich their lives.
However, adopting this philosophy requires a fundamental shift in mindset. Early retirees realize that true wealth lies not only in financial assets, but in the freedom to live life on their own terms. This may entail making intentional trade-offs, such as choosing a simpler lifestyle or prioritizing experiences over material possessions. By reframing the concept of wealth to include time, early retirees find satisfaction in moments of connection, creativity, and personal fulfillment. Ultimately, by realizing that time is the most precious commodity, individuals can embark on a path toward early retirement that prioritizes a meaningful life over wealth accumulation.
No. 12: Retire early if you suspect you’ve saved too much
Surprisingly, it’s possible to over-prepare for retirement, resulting in more savings than you’ll realistically need. If you find yourself in this fortunate situation (and you probably know who you are), early retirement may be a compelling option. Instead of continuing to accumulate wealth unnecessarily, early retirement allows you to start enjoying the fruits of your labor and experience life on your terms.
By retiring ahead of schedule, you can escape the rat race and devote your time to endeavors that bring you happiness and fulfillment. Embrace your abundance. Create a retirement that is not only financially secure, but also rich with meaning and purpose.
Source link