Early retirement: Do you really need to work another 5-7 years?

It’s normal to want to retire and leave the work world while you’re still young and able to enjoy it. There are a plethora of good reasons to retire early.

I want to spend more time enjoying my family and friends.

I want to participate in activities I enjoy.

My work is not really what I want to do with my life.

I want to become a world traveler.

I want to use my time and talent making a difference in the world.
The list goes on and on. Unfortunately due to the economic crisis, many are left wondering if they will ever be able to retire at all. For some people the new retirement plan seems to be “keep on working”. The fact is you cannot retire until you have saved enough money to live. Before you turn in your letter of resignation, evaluate your finances in terms of retirement. You need to carefully plan whether or not you have enough to live in the style you imagined during retirement. Besides the hurdle of finance the retiree faces the cost of health insurance. It is prudent to research insurance costs and use an online retirement calculator such as the Fidelity Income Strategy Evaluator. http://bit.ly/KuSXcY

If you find that you fall short of your retirement savings goal, all is not yet lost. You could prepare yourself for a career transition and find a more satisfying job that is more in line with your interests while trying to become debt free as fast as possible by cutting living expenses. Yet another option would be to retire abroad. Although it is not for everyone, it is possible to retire abroad for significantly less than in the US. To maintain a middle class lifestyle in many popular retirement destinations costs vary from about $1000 – $2500 per month.

In all cases, think long and hard about what retirement would be like on a daily basis. Would you be a couch potato and bored without the stimulation of your previous lifestyle? Would you be active and open for new experiences? Remember that during any phase of your life you must find something to do that you enjoy.


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