How to Prepare for an Unexpected Early Retirement
One of the reasons why people work so hard is so that when they retire, they would have enough money to live the kind of life they wish to have. It is understandable to have the desire to live comfortably now that you’re still young, but it is very important for you to know how important it is to save up for retirement as early as possible.
Some people don’t really see the significance at first but as time goes by, they slowly realize how important it actually is. There are even some who choose to retire earlier than usual, but it often depends on how much you have been earning as well as the kind of lifestyle you’re rooting for. However, there may be times that you wouldn’t have the chance to choose since the early retirement hits you so unexpectedly. Here a couple of things you need to know about it and how you can prepare for it.
Understanding Early Retirement
When they say early retirement, it usually means that due to certain circumstances or because of a personal choice, someone who is a little younger than the age of 65 goes into retirement. People who are aged 65 and above are the only ones who are eligible for Medicare since they are at or over the retirement age, so technically those who are in early retirement must figure out a plan to have a secure health insurance while waiting to be qualified.
Those who are in the military or civil services such as being a police officer or a fireman, usually retire at the age of 50 to 55 which are the most common age they retire. They are the only ones who are exempted from waiting since even if they are not 65 yet, they have their own benefits like the full pension and the health insurances.
Not everyone wants to retire early since they want to work as much as they can to be able to earn money to save for their retirement. However, there may be cases wherein they wouldn’t have a choice but to do so. The biggest challenge that an early retiree will face would be the fact that they have to make sure that they have saved up enough money, or else it could literally be a problem. This is why a good 35 to 40 year of saving is needed if you are just starting your career, feel free to start saving up for retirement. Keep in mind that it is never too early or too late to save up for something that would totally benefit you at the end.
How To Prepare For An Unexpected Early Retirement
Unexpected early retirement usually happens when you simply don’t have a choice in the matter. One of the usual scenarios about it is when the company you’re working for decides to either remove your position, downsizing
, or laying off. You may be stable for now but you never know what may happen a few years from now. It can be difficult to find a new job if you are over the age of 50 especially with the subtle age discrimination at work. In order to slowly plan for it, you may begin by putting together a retirement income plan. Start by doing a timeline either on your planner, journal, or your phone by listing down the Social Security pensions, anticipated savings, investment accounts, annuities, and even the debts that you still have to pay for. This is where you need to figure out how you must try to reduce your expenses and do a convenient and effect budget for yourself.
This is where evaluating your needs and wants comes into the picture, planning for something unexpected is like trying to look for something in the dark. By being able to evaluate what you need and what you want, you’ll have a better view on what matters as well as save up even more for retirement. Keep in mind that there will never be such thing as too much saving. The more you save up, the more money you get when you need it the most. Time will come that you will be bale to use all of it for your own sake.
More in Retirement
Johnny Depp is Apparently Broke! Here’s How He Scorched His Entire Fortune
Back when the Pirates of the Caribbean franchise was the hottest thing in town, the movies’ main man, Johnny Depp, was...June 20, 2019
Reason Why Financial Advisors Need to Adapt to the Tech World
Most people think that money makes the world go round, this may be true in a way especially for those who...June 20, 2019
How Much a $1000 Investment in Apple 38 Years Ago Would be Worth Today
Current Worth Of Investment Apple recently debuted a new set of its updated products. The products include one MacBook Air and...June 20, 2019
Shell Reports Biggest Profits in 4 Years as Oil Prices Rise to Astronomical Levels
Royal Dutch Shell recently disclosed its third-quarter earnings, reporting a 37 per cent increase in revenue and highest profits in the...June 20, 2019
Gone with the Wind! Here’s How Mel B Lost Her Enormous Fortune
The English pop girl group, the Spice Girls, established their dominance with their debut single Wannabe which hit the airwaves in...June 20, 2019
Don’t Refinance Your Home without Doing These Five Things
Thinking of giving your home a major renovation or take advantage of low mortgage interest rates? Some might tell you that...June 20, 2019
Pro Tips for Building a Successful Investment Portfolio
Everyone wants a shortcut to success and happiness in life, and we often seek out secret tips and tricks that can...June 20, 2019
Kim Kardashian is Serving Some Serious Financial Advice, And We All Need to Take Note
Thanks to Vogue, Kim Kardashian’s fans have been able to explore the reality star’s Hidden Hills home, where she lives with...June 20, 2019
Common Myths About Working From Home That Are Absolutely False!
You’re not alone if you think working from home gives you an opportunity to laze in your pajamas all day because...June 20, 2019