Everything You Need to Know When Retiring Under 65
When it comes to retiring early, everything you need to know boils down to two things: time and money. In this short article, we cannot address every tidbit of knowledge necessary to navigate early retirement. But understanding that time and money are central to how you and your partner will experience your golden years can make the transition a little bit easier.
The Impact of Time for the Early Retiree
Retiring early is an admirable goal. However, in the rush to retire, it can be difficult to paint a clear picture of what early retirement will be like. For most retirees, images of days on the golf course or traveling the globe are common. But, as it turns out, reality often looks very different.
Too much time – While working, there never seems to be enough hours in the day. As a retiree, you have every hour of the day to yourself. It is important to consider getting involved in enough activities or hobbies to fill up the additional 40-plus hours a week you will get back.
Fewer or newer friends – You may be retiring early, but what about your friends? Most will still be working, making early retirement a lonely place if you aren’t willing to make new friends or truly enjoy hours of alone time.
Preparing your family – Early retirement certainly affords more time with your grandkids. However, your spouse is about to see much more of you too. Divorce after 50 has nearly doubled for couples who didn’t prepare for this major life transition.
The Impact Early Retirement Has on Money
Retirement is expensive and even more so when done early. Having a workable budget and planning for contingencies is just the start of ensuring you are financially ready. Even so, many retirees aren’t prepared for how significantly their finances will change.
You will spend more – With time on your hands and health on your side, the odds are you will spend more than you had budgeted. Every day feels like a weekend and too many retirees treat them as such by eating out more often, participating in more leisure activities, and spending money on ways just to occupy their time.
Health care is costly – As you wait for Medicare eligibility, you must purchase your own health insurance coverage. Unfortunately, in today’s marketplace, even the most barebones policies are exorbitantly expensive, with no signs of relief in sight.
Investment strategies change – Not only will you no longer contribute to retirement accounts, but you will likely need to become much more conservative in your investment strategy. This will reduce your annual return and limit the income you can withdraw each year.
Early retirement can be fun and exciting. But, before taking the plunge, take a moment and chat about the challenges others have faced when retiring early. The most important advice is to ensure you are retiring toward something and not from something.
- Long-term Health Benefits of Physical Activity
- How to Trim Down Hidden Costs of Flying
- Best foods for hydration
- How to Experience Positive Aging (8 Tips)
- How to Improve Your Health: The 5 Main Aspects of Wellness
- How much should you actually have in savings?
- Are you underinsured for your circumstances?
- How to Build Sustainable Wealth
- How to Maintain Our Body
- Enhancing Resilience as We Age
- The Body After 60: Overcoming Barriers to Exercise
- The best herbs to grow for beginners
- Foods you had no idea you could freeze
- Is celebrating your 100th birthday no longer a dream?
- Medicare and Medicaid: Dual eligibility
- Summer Workouts for Your Dose of Vitamin D
- What’s Keeping You from Losing Weight?
- Music and Your Wellbeing
- Your NEW Social Security Statement
- How to Dispose of Unused Medications
- Smart Home Systems: Promoting a Comfortable Environment for Seniors
- Aging and Our Body’s Ability to Heal Itself
- Keeping Health Insurance After a Layoff
- Waking Up to the Impact of Insomnia
- How Life Insurance Benefits Women
- What experts say about raising the retirement age
- Coverage for healthcare treatment denied? Here's what you can do.
- Sharing the Road with Cyclists
- Buying Life Insurance for an Elderly Parent?
- Living Your Best Life After 60
- Buying Health Insurance: A Millennial’s Guide
- Self-Love Ideas for Valentine’s Day
- Life Without Clutter
- Set Yourself Up for Success with Your Fitness Routine
- Winter Hydration – Do I Need It?
- I’m 60+; Do I Need Life Insurance?
- Why Do I Keep Breaking My New Year's Resolutions?
- Closing Out the Year with a Smile!
- How to Enjoy a Long Layover
- 6 Cold Weather Safety Tips
- 10 Tips for Managing Cholesterol Levels
- How Much Life Insurance Do You Need Right Now?
- 3 Top Tips for Better Posture
- Building Bone Density for Seniors
- Living Outside Your Comfort Zone in Retirement
- 3 Top Habits that Lead to a Happy Life After Retirement
- Should You Insure Your Gifts?
- Everything You Need to Know When Retiring Under 65
- 7 Benefits of Slow Travel
- Utilizing Medicare Preventative Services
- The Harsh Reality of Credit Card Fees
- Keeping Your Health Insurance Affordable
- 7 Tips to Weather Challenging Periods in Your Life
- What is a Variable Annuity? 4 Key Details You Should Know
- 4 of the Best Ways to Stay Healthy this Summer
- How to Prevent Sun Damage to Your Eyes
- 3 Tips for Safer Grilling
- When the Sun is NOT Your Friend (What You Need to Know about Sun Exposure)
- Tips to Avoid Stress Eating
- Affordable Care Act Open Enrollment – Important Dates and What’s New
- Medicare’s Open Enrollment Period is Here!
- How to Prepare for the 2019 Medicare Annual Enrollment Period
- Medicare: The Difference Between AEP and OEP
- Is Plan F (Medicare) Going Away?
- How to Choose a Primary Physician
- How to Store Your Life Insurance Records
- Prepare a Health Care Package for Your College Student
- 5 Portion Control Tips
- What Does MACRA Mean for You?