Retiring early, or retiring by age 62, seems like a fantastic dream to many people. You’ve been working for decades. You have been focusing on your work with the goal of enjoying the rest of your life in your own way. But is it too early to get out of the rat race? Retiring at age 62 is quite different (for better or worse) than retiring later.
If you’re wondering if it’s the right thing for you, 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 really retire at 62? Faster than that! (And if you want advice on how to make that happen, here it is 37 tips for early retirement.) Or start planning for early retirement today with NewRetirement Planner, the best online retirement planning tool. Forbes magazine calls this a “new approach.”
Reason for retiring early #1: Stay healthy for longer
There is no doubt that working or being active will help you stay healthy longer than sitting with your feet up. But not all jobs are good for you. Sometimes it has a negative effect on health.
Retiring at age 62 from a demanding job or one with disproportionately high levels of stress can help you maintain or regain your health and keep it that way for longer.
Be sure to make plans to stay mentally, socially, and physically active in retirement. Work helps you stay engaged. But work isn’t the only way to stay energized.
#2: Retire at age 62 (or sooner) if you know what else you want to do.
Do you have a dream you’ve always wanted to pursue but never had the time? Maybe you want to write a novel. Have you ever thought about getting involved in community theater? 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 yarn store.
If you know you have a real goal and are passionate about it, there’s no good reason to retire early. (Still not sure what you want to do? Here are 120 ideas for what to do in retirement.)
It is said that no one grows old regretting something they have done. The things we regret are the times we didn’t try, the opportunities we missed, and the dreams we had left ignored as they gathered dust on a shelf. If possible, you could retire at age 62 and still have many years to pursue that dream and truly enjoy it.
#3: Retire early if you can compromise for security.
For those considering early retirement, a key consideration is whether they are willing to make strategic compromises in pursuit of long-term financial security.
Achieving lifelong financial security through early retirement requires a proactive approach and a realistic understanding of potential trade-offs. While practicing frugality can pave the way to financial freedom, it can 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, staying aware of changing market conditions and regularly reevaluating your financial plans is essential to adapting to changing conditions. By embracing flexibility, discipline, and an openness to compromise, individuals can navigate the complexities of early retirement and embark on a fulfilling journey toward lasting financial security.
#4: Plan for early retirement when you’re ready to focus on your goals.
Maybe you’re not yet financially ready to retire early. Should this hold you back? Absolutely not. Especially if you’re ready to focus on your financial goals.
Most Americans are not prepared for retirement and may need to continue working into their 60s and beyond. However, don’t let past failures due to lack of planning and savings hold you back from now on.
Set a goal to retire early, start analyzing your finances, and make a plan to get out of the workforce as soon as possible. The sooner you put in the effort to retire early, the sooner you will be able to retire. This may require rethinking traditional concepts of retirement and embracing alternative lifestyle options to enhance financial security. By adopting a frugal mindset and prioritizing needs over wants, individuals can further expand their retirement savings and ensure they last a lifetime. Downsizing to a more affordable living environment, cutting unnecessary expenses, and carefully managing your investments are all viable strategies to protect your financial resources. Additionally, maintaining diversified income streams through part-time work and entrepreneurial ventures provides supplementary income streams and strengthens financial resilience in the face of unexpected challenges. can do.
NewRetirement Planner makes it easy to get started. Try different scenarios to find your way to retirement as quickly as possible.
#5: Retire at 62 if you want to learn new things
If you’ve dedicated your education and life to an intensive career, there may come a time when you want to try something completely new. Retiring at age 62 means you still have time to pursue your education in other directions and still have time to take advantage of and enjoy it.
Adult students usually perform better than younger students. And even if you’re not trying to get a new degree that will help you at work, learning for personal development can be rewarding. You may even gain a new skill set that you can use when starting your own business.
#6: If you think about it, retire early.
Retiring early is not something you can take lightly. Your finances may be in order, but you also need to make sure you understand how your life will change. For example, spending every minute of every day with your spouse can be more stressful than you imagine, especially if you’ve only ever spent a few hours together each day.
For those who are used to going to work Monday through Friday, it can be difficult to cope with the sudden change in schedule and everything that comes with it. If this is you, you might want to try a sabbatical instead of early retirement.
However, if you’ve already done your homework and are just waiting for your 62 to arrive, there’s nothing stopping you.
#7: Retire early if you don’t need to start collecting Social Security early.
The earliest age you can start receiving Social Security benefits is age 62. However, just because you can start benefits doesn’t mean you should.
Your monthly Social Security pay increases significantly for each month and year you start late until retirement age (approximately age 67). Depending on your work history, waiting for Social Security to start can cost you more than $100,000 in extra money over your lifetime.
So if you’re planning on retiring early, it’s best to retire early without starting Social Security.
Start planning for early retirement…
#8: Retire early if you’re ready to simplify.
It’s not necessary to live more frugally in retirement, but if you think you can simplify your spending, you could retire at age 62 or earlier if you really wanted to.
Retirement gives you the opportunity to prioritize what’s important to you and forget about the rest. Prioritizing can reduce your spending levels. And this can be incredibly freeing.
#9: Retire early if you have health insurance.
If you retire at age 62, you still have three years to qualify for Medicare unless you qualify for disability. You must enroll in medical insurance until you reach the age of 65.
Just because you’re healthy doesn’t mean you don’t have to buy health insurance. Once you get a private policy to bridge the gap, you’re good to go. If not, you may want to wait a little longer until you retire.
Here are some ideas for how to pay your medical bills before you qualify for Medicare.
#10: Retire early if you are debt-free (or almost debt-free)
Perhaps the biggest indicator that it’s really okay to retire early is that your debts are paid off or very close to being paid off. Debt-free living, financial freedom, or however you choose to describe it, means that you have fulfilled all or most of your obligations, and the years to come will be much less taxing.
If you don’t have any debt and have enough retirement income, there’s little reason to keep working if you don’t want to. This is a time in your life that you have worked hard to reach. So get out there and have fun.
NewRetirement’s Planner is an easy way to help you determine if you can retire early. It only takes a few minutes. What you learn here will help you plan your new career path.
#11: Retire early: Time is more important than money
By retiring early, individuals can reclaim their most valuable resources and use them to pursue pursuits that align with their passions, values, and personal growth. Rather than being tied down to a demanding career, early retirees have the freedom to explore new interests, spend quality time with loved ones, and prioritize life-enriching experiences.
However, accepting this philosophy requires a fundamental shift in thinking. Early retirees understand that true wealth lies not just in financial assets, but in the freedom to live life on your terms. This may require intentional trade-offs, such as choosing a simpler lifestyle or prioritizing experiences over material possessions. By reframing the concept of wealth to encompass time, early retirees find fulfillment in moments of connection, creativity, and personal fulfillment. Ultimately, by recognizing that time is most precious, individuals can begin on a path to early retirement that prioritizes meaningful living over wealth accumulation.
#12: Retire early if you think you’re saving too much.
Surprisingly, it’s possible to overprepare for retirement and accumulate more savings than you realistically need. If you’re in this fortunate position (and you probably know who you are), early retirement may be an attractive option. Rather than continuing to accumulate wealth unnecessarily, retiring early allows you to enjoy the fruits of your labor and experience life at your own pace.
By retiring earlier than planned, you can escape the rat race and dedicate your time to pursuits that bring you joy and fulfillment. Embrace your abundance. Create a retirement that’s not only financially secure, but rich in meaning and purpose.
