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
Invest or Pay Off Debt: Which One Should You Do First?
What came first, the chicken or the egg? This causality dilemma is very much relevant to our finances, especially when it...September 18, 2019
Smart Ways to Bring Down Your Car Insurance Premiums
The good news about car insurance is that it can take you less than 5 minutes to compare prices and find...September 18, 2019
Retirement Resolutions You Must Fulfill Now Before It’s Too Late
Most people believe that having a career that you have always wanted or a well-paying job means that you’ll be able...September 18, 2019
Tips to Help You Achieve Your Saving Goals in 2019
Achieving Your Saving Goals A mere resolution to increase your savings in 2019 might not be sufficient to help you achieve...September 18, 2019
Topshop Billionaire Philip Green Lost $3 Billion in 3 Years, Here’s What Happened to His Once-Glorious Empire
Online retailers are taking the world by storm, and you just have to take a look at how huge Amazon has...September 16, 2019
How The Beatles Helped Michael Jackson Make $1 Billion from This Shrewd Investment
As much as Michael Jackson was a talented singer and dancer, he was also an entrepreneurial mastermind who made some profitable investments...September 15, 2019
Jim Chanos Addresses Silicon Valley CEOs Excessive Exaggerations
Common lying problem Founder and managing partner of Kynikos Associates, Jim Chanos has reportedly stated that lying is becoming a problematic...September 15, 2019
Breaking: Rats Videoed Running Inside Buns Bags at Burger King
A Facebook user named Shantel Johnson, took to her page to share a video of rats running through a bag of...September 15, 2019
Want to Know Your Financial Advisor More? See If He Has These Skills
A financial advisor is also referred to as financial planner or wealth manager. He advises his clients on how to manage...September 15, 2019