Some people choose to delay retirement into their late 60s, however, at age 62 you are eligible to start collecting Social Security benefits, and if you’ve prepared well for retirement, retiring early might make sense. Although it isn’t for everyone, there are many benefits that come with an early retirement.
For starters, you have even more time to spend with your loved ones and doing your favorite activities. If you retire early, you get a head start on all of the fun hobbies and free time that comes with retirement. For some this is traveling or volunteering, or maybe something active like mountain biking that could get more difficult to enjoy as you age.
Next, you have freedom to start your own business if this is something you’ve always dreamed of doing. Retiring doesn’t always mean you can never work again, it gives you an opportunity to pursue your passions in a field that you might not have explored while you were employed.
The workforce is not always the healthiest environment to live in. From long hours and sleepless nights to added stress and anxiety. If you retire early, you save yourself some of the ailments that come from these things and may have more time to stay active and take care of your body. There also might be some expenses that disappear during retirement once you leave the workforce.
Lastly, you could end up seeing greater returns from pensions and Social Security. Although the benefit from Social Security is lower the earlier you retire, if you invest correctly you may end up with a sizable nest egg. This takes careful planning and help from your trusted financial advisor to make sure that you are not missing out on Social Security benefits.
Retiring early takes careful planning and saving. If you’re interested in seeing if early retirement is right for you, click here to schedule your no cost, no obligation financial review. The professionals at Madrona Financial can sit down with you and figure out a complete retirement plan to help you retire at the time that is right for you.