5 Reasons Why an Early Retirement is a Great Idea for You

5 Reasons Why an Early Retirement is a Great Idea for You

Some people build their entire life around their work, their profession. For others, however, their work, their profession is simply a means to an end. Some people simply earn what they can to achieve other important goals that may need them to enter into an early retirement. This decision of theirs must not be seen from the lens or ‘wrong’ or ‘right’, it must simply be seen as their choice and choice only.

Does the same concept apply to you as well? Do you have a different idea of how you want your life to progress? Retiring early may be the way to achieve that. However, you will invariably have to achieve financial independence to get there. Being financially independent by say, when you’re 50, entails that you’re free of all debt, you have enough savings to last you in the long years to come, and you (preferably) have a means of regular income as well.

This will take a great deal of planning, a sense of discipline with spending, and a good practice of accumulating substantial, regular savings and investments. But, this piece isn’t about helping you achieve financial independence. This is about providing you with the common reasons why people opt for an early retirement. If these reasons resonate with you, then an early retirement is certainly a good idea for you.

1.   Tending Health Problems

Most individuals only start to face their health issues after they reach a certain age. While, others realise they have common health problems that have a great bearing on their life when they’re young, and things don’t get better once they cross 50. Those who tend to suffer from health problems may benefit a lot by retiring early as it allows them to lead a stress-free life when they’re out of the workforce and they can better take care of their health when they get there. However, those who suffer from health problems must also realise they may have to deal with huge medical expenses later on. That makes it all the more important that they achieve financial independence sooner rather than later. Here are things that will help you achieve financial independence.

2.   Pursuing Other Interests

Did you always want to take care of your own farm as a means to survive in this world? Or, did you want to master the art of brewing your own beer? Or perhaps, you always wanted to play the role of a reclusive writer. There’s a reason why you could never really go on to try out these things. You know the reason just as well as we do – it’s simply that these were never reliable means to earn a livelihood. But, those who have worked all their lives doing jobs they’d rather not do have all the possible reasons to retire early and take up their personal interests.

The best part about these post-retirement avenues is that if it all works out fine, it can also be a source of variable income. And, we all know that any income goes a long way in offering you a comfortable retirement. However, it’s important that you don’t take up these interests expecting money. These should be treated strictly as interests that can lead to some handy money.

3.   Spending Time with Family

Time is scarce in the world of tiring work schedules, social engagements, and constant distractions in the form of internet. This scarcity of time has led to the neglect of our familial obligations and not everyone has managed them well during their professional careers. For those who believe they’ve not done enough justice to those around them, early retirement is a course they ought to consider. Since we don’t want to limit the definition of family to their closest relatives, we also want to extend the meaning of family to the greater community around them. Community work really brings about the best in people who are willing to invest some of their time and an early retirement is the best way to get there.

4.   Travelling the World

Retiring early may seem counterproductive to some if you aim to travel the world. But, realistically speaking, it’s increasingly difficult to get those three weeks off from work and your plans keep suffering for that reality. Through achieving financial independence before opting for an early retirement, you have the necessary resources such as time and money required to travel the world. This is more and more possible as travellers have come across cost-efficient ways to travel the world and there are all sorts of posts made on the subject. Another important thing to remember that such extensive travelling will get difficult as you enter your mid-sixties and you’d rather start earlier!

5.   Sorting Out Your Life

You may not be expecting this here but it makes total sense to add this here, hear us out! An early retirement is a challenging long-term goal, make no mistake. And it’s necessary for you to plan things well and get your life in order before you can really be sure that you’re truly a course. So, if an early retirement and financial independence is your long-term objective, then your life must align with that long-term objective of yours. That’s also the entire premise of having a long-term goal in the first place; it offers you a sense of direction. It must be said, though, that the path to achieving this is regular savings, a diversified portfolio of investments, and discipline with how you spend your money.

Are you not sure about an early retirement? That’s not a problem at all, there’s still a long way to go and you don’t have to make up your mind per se.  Just consider this: if you go about your life thinking of an early retirement, you’d be better at handling your finances. What’s the worst that can happen if you retire early? Nothing, really, you can start looking for a job if you believe you aren’t there yet!

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