Is It A Good Idea To Take Early Retirement?
According to surveys about what Americans think about early retirement it is surprising to learn that as many as about sixty percent of those who responded wished to retire from active life at an early stage in their lives. The plain truth is that early retirement comes with a complement of benefits though at the same time there are certain circumstances that occur because of choosing to retire early that should also be known.
More Problems Than Benefits
The truth of the fact is that early retirement can lead to several problems that in fact can even outnumber the benefits. It is therefore a good idea to know about why early retirement can prove to be a risky thing. For one, it is something that does not adhere to the regulations governing Social Security. For another, a person that retires early and falls sick will not be covered by Medicare.
Early retirement may preclude you from reaping some of the benefits of Social Security since the regulations in force say that people born after the year 1938 will need to retire after reaching the age of sixty-five before they are entitled to get Social Security benefits.
People that have opted for early retirement and who then fall sick are not entitled for Medicare benefits because again the benefits are only available to people aged sixty-five or older. This means that early retirees will have to bear their own medical expenses.
Also, if you take early retirement you may be levied a penalty charge, especially if you have withdrawn your IRA early and this penalty charge can be as high as ten percent. It is safe to say then that early retirement is a personal decision though one that should only be taken after carefully evaluating the consequences that in the end will have an important bearing on life after retirement.
However, there are still ways to get around these downsides to early retirement including taking up home employment such as becoming engaged in making phone sales from home; in addition, you can also ask for professional help to get your property tax lowered.
If you need advice about whether or not to opt for early retirement then you should make an effort and visit an early retirement forum where there is much useful help and information available to make things simpler for you. Here, you can interact with fellow early retirees as well as speak with experts on the subject of early retirement and so get your doubts cleared and be in a stronger position to make the right decision.