You’ve worked hard and you’re ready to enjoy it. If you’re thinking about early retirement (before age 60), there are a number of things to take into consideration. While enjoying more of your years without working may seem like a no-brainer, there can be some downsides to retiring early.
- You Might Not Enjoy the Extra Free Time
What do you want to do in retirement? Will seeing friends and family, volunteering, or other projects fill your time? It’s possible that your extra free time will not be as enjoyable as you think.
2. You Might Pay a Penalty for Using Retirement Funds Early
If you start to withdraw from your retirement accounts early, you could pay a penalty of 10%. Consider if it’s worth it to take funds out ahead of schedule.
3. Sudden Expenses Can Crop Up
Once you retire, you’ll still encounter unexpected expenses. House repairs, needing a new car, or sudden medical issues can make you wish you were still bringing in income.
AARP’s “10 Things No One Tells You About Early Retirement” is a great resource for anyone who is planning for retirement – or even already retired.
Did you retire early? Do you agree experience these downsides? Let us know!
At NORA, we’re working to ensure retirees see more of the Social Security benefits they’ve earned. Discover more about our mission to ensure a cost-of-living adjustment of at least 3% each year. Then, please sign our online petition—and be sure to join us on Twitter and Facebook today!
