Are You Retiring Early (Whatever That Means)? | You’d Better Have a Plan

The newest trend in workplaces across the country is early retirement. Fresh perspectives on how and when to retire are in the air, and many of you are likely considering retiring early. Make sure you consider, also, what it will really mean for you. 

So, Retiring Early Is a Trend?

Yes. Retiring early is a wonderful gift many workers are giving themselves as a result of many factors.

1. COVID provided an opportunity for workers to imagine their life’s possibilities and life looks way better in retirement.
2. Workers really did start saving for retirement at their first job and they have more money now than they thought they would.
3. Some workers started saving young and never got married or had children. Now they really have more money than they thought they would.
4. Many workers are done with what they are doing. It’s just too…much. 
5. “Take this job and shove it.”

What do I mean when I refer to this trend as early retirement?

The traditional time to retire is set at somewhere between 65-67 depending on the year of your birth. You are eligible for medicare at 65. YAY!!!!! You can start taking social security as early as 62. So when I refer to early retirement, I mean you are leaving what you are currently doing before social security at 62 and before medicare at 65.

Why is the trend toward early retirement happening?

Here is what I’m seeing out there.  Many of you have very big jobs or successful businesses from which you are making an exit. You have been tethered to your devices more often than not and have a love/hate relationship with how often your life gets interrupted by something pressing at work. You have been working very hard for well over 35 years in your professional life and it is no longer fulfilling.

What could go wrong when I retire early?

Without a plan for transition in place, you could die of boredom and get depressed because you feel useless. I exaggerate about the dying of boredom but I’m serious about getting depressed. Big changes like retirement take time to get to get used to. Waking up that first Monday morning is a giddy feeling. Even the first week can feel like vacation. That next week starts to get weird.

Beyond not knowing what to do with all my time, what else can go wrong?

I’ll assume you have a sound financial plan and a trusted financial advisor who is helping you plan your money. Just be sure you have thought through and researched health insurance. COBRA lasts for 18 months.  Does that carry you through until you are medicare eligible? If it doesn’t, what’s your plan for that?

There is so much to celebrate about making a change as dramatic as retiring, whether you are going to start your dream job in your second act career or you’re planning to pursue your passions in another fresh way. You can ensure it goes perfectly as long as you have a plan. 

Not sure you have it quite figured out? If you’re bored of the financial details and want to begin the fun part — You are RETIRING!!!!! You get to bring a super fresh approach to imagining your life’s possibilities! — contact me to schedule a free sample coaching session.