Collaborative Post
Retirement is one of those big checkpoints in life that you either look forward to every day or dread the thought of. Thankfully, it’s something that you can control as long as you’re careful about your financial situation and plan well in advance for. The current state pension age for both men and women in the UK is 65, but this will increase to 66 by 2020 and 67 by 2028. This is the age where it’s most common to retire since you’ll receive government benefits to help you continue living your life after leaving the workforce, but what if you had the opportunity to retire early?
What if your business took off and turned into a successful corporation that is making you enough passive income that you don’t need to work? Or perhaps you win the lottery in the future and have more money than you know what to do with? Is that a good excuse to leave your job and retire early?
It really depends on what you want from life.
Early retirement allows you to enjoy more of the world. There are some wonderful holiday destinations that are completely unique and unlike anything you’ve probably seen before, so having more time to explore the earth is a joy that few people get to experience. You also don’t need to deal with your job anymore which could be a huge bonus if you really disliked your workplace, and you don’t have to restrict yourself to living near your place of employment anymore.
Retiring early can also help you set your own goals in life. Whether it’s getting outdoors to exercise more often or indulging in a hobby that you’ve had since you were young, there are countless ways to enjoy the rest of your life and chase childhood dreams that still aren’t too far away.
The downside to retiring early
Unfortunately, retiring early does have downsides. The most obvious one is that you absolutely need to be financially prepared. Depending on the age you want to retire early, you’re going to need thousands of pounds for each year that you want to retire before the state pension age, and the pension money you receive won’t be very high if you don’t invest into it. You’re also going to need to plan ahead, such as if you want to live in a care home such as Porthaven or if you’d prefer the independence of living at home with family and carers as you get older.
While these considerations can seem very far off, it’s easy to neglect them as you enjoy the freedom of early retirement. There’s also the problem that you might actually enjoy your job and the people you work with, which is a strong enough reason not to retire early. Some people that leave the workforce at an earlier age find that they lose a sense of purpose, resulting in very boring and slow days that just pass by.
In conclusion, retiring early is a luxury that not everyone can have, but depending on your personal circumstances it could be something worth considering if you have a lot of goals outside of the workplace that you want to reach. However, if truly love your job and wouldn’t trade it for anything, then that’s perfectly fine too.