If you’ve been thinking about retiring early, that’s awesome.
I’m sure you deserve it.
But there are some factors that may get in the way between you and the peace you deserve.
More specifically, there are six reasons why you may not be able to retire as early as you want…
Not Enough Savings
Maybe you still have kids in college…
Perhaps you have elderly parents who need help paying medical bills or nursing home fees. ..
Or maybe you still have a mortgage and credit card debt.
If that’s the case and you’re planning to maintain your existing lifestyle — but your savings are limited — you’ll need to either take care of the above expenses beforehand or make sure you have enough savings to pay them as they come (including an emergency).
Reduced Social Security
The earlier you start collecting your social security benefits, the less benefits you’ll receive.
The earliest you can start collecting your benefits is age 62, and if you decide to do so you’ll only receive about 70% of your benefits.
The more you wait to start collecting, the higher your benefits will be.
Living Longer Than Expected
Thanks to the technological and medical innovations of our era, people are living longer than ever before.
According to the Social Security Administration, about one in three 65-year-olds today will live past age 90, and one in seven will live past age 95.7
And if your family has a history of longevity or you take care of yourself, you might live even longer!
The average monthly benefit for retirees in 2020 was $1,503, or $18,036 a year.
For retirees with no savings and no pension, it may be hard to meet basic living expenses on Social Security income alone. Therefore, you might want to wait till age 70, when you can collect your maximum Social Security benefit.
A 2017 paper published in the Journal of Public Economics found a link between early retirement and mortality rates, especially among men.
The research conducted in the study showed that men could see a 20% increase in mortality risk by claiming benefits early and retiring.
Saying Goodbye To Your Bucket List?
Retiring early would mean significantly smaller 401k savings. Which could result in you saying goodbye to some of your dreams or goals.
Maybe you want to buy a house in Florida, or take a cruise…
Are you willing to sacrifice those things?
The Point of No Return
If you change your mind after you take early retirement and want to return to the workforce, it’s not as easy as deciding to go back.
Whether you quit your last job or were laid off, finding new employment when you’re over 50 can be a struggle.
And if you do manage to get a new job, chances are it won’t pay as well as the one you left.
But fear not!
Because you can still retire early if that’s what you truly desire.
Trading can enable you to generate a healthy income while investing little time.
We’ve got many retirees in Hawkeye who have a higher income than when they were working — and they truly enjoy trading!
If that’s something you’re interested in…