Statistics show that average Americans are retiring at the age of 64 years in 2019. However, many Americans are dreaming of retiring early. What are the reasons behind the decisions for early retirement? What are its advantages and disadvantages, actually?
In fact, there may be various reasons to retire early. They may include job loss, family responsibilities, and health problems. These problems can force someone to get out of the office sooner than expected. However, if you can still make the choice on your own, you had better consider the pros and cons of early retirement before making a decision:
Common Reasons for Early Retirement
Some people choose to retire earlier to have more time for their families. If their financial condition is good enough, they will begin to travel to new places. For them, the earlier they retire, the more time they have before health problems limit their mobility. Other reasons to retire earlier include the following:
- Good for health; for many people, jobs at work are sources of stress. Work-related stress is partly responsible for some health problems. Therefore, retiring early is potentially good for your health, as you can stay away from the sources of stress. This assumption may be true for higher-level jobs.
- A time to start a new career. Some people are trying to get a new job for retirement. If you plan to start a new career, retiring early provides you with time for preparation. The same case is true if you want to start a business for retirement days. If you retire before the age of 60 years, you may be still challenged enough to run the business than if you start it after the age of 65 years.
Common Cons for Early Retirement
Of course, individuals who choose to delay retirement have certain reasons. The following are some of them:
- Possibly bad for your health; while some people think it is better to retire early for your health, others think the contrary. Why? For others, retiring earlier can possibly decline mental health and mobility. When retiring, you are less active physically and socially. This may put you at higher risk for developing cardiovascular diseases like heart disease, diabetes mellitus, and stroke.
- Smaller social security. The earlier you retire, the earlier you take the social security benefits. It means that the amount is lower. For most Americans, the age 67 years is considered the ideal retirement age when it comes to social security.
- Tough transition time; for many people, the transition to life after retirement can be tough. The transition from the full-time job to the retirement days can be a challenge, when you are not ready for it. You must be ready to stay away from your former colleges. The problem is that finding a new job after retirement can be another challenge.
For some people, early retirement is an interesting time to enjoy a happier life. However, some may find it challenging, particularly when they are not well prepared for the new unstructured life of retirement. Therefore, make sure to consider the above things before making a decision.