Investigate These Factors Before Leaping Into Retirement


Investigate These Factors Before Leaping Into Retirement

Posted by Infinite Wealth Advisors, LLC
7 years ago | September 11, 2017

Group of Senior Retirement Meet up Happiness ConceptYears ago, you established a long-term savings plan for retirement, and set a prospective date to transition into your new life. But maybe you’ve enjoyed quite a bit of career success or good luck in the meantime, and you’re considering an earlier retirement. Before taking that leap, make sure to assess these five factors that could impact your lifestyle and financial needs.

Are you eligible for Social Security? If Social Security was a part of your original retirement plan, keep in mind that the earliest you can claim benefits is age 62. But of course, you will face a permanent reduction in the monthly amount if you don’t wait until your full retirement age as defined by Social Security (age 66 or 67, depending upon your birth date).

What will you do about healthcare? You aren’t eligible for Medicare until age 65, so what will you do in the meantime? Does your employer provide retiree health benefits, and is it a comprehensive, affordable plan? Will you shop for your own healthcare plan on the health insurance market? Can your budget accommodate rising premiums?

What will you do all day? Yes, you can’t wait to escape your office desk, but now you need a plan to fill at least eight hours per day. Contrary to popular belief, hanging out at home watching TV becomes boring quite quickly for most retirees. You need a plan to fill your days with outings and activities, volunteer and community work, or even a part-time second career.

Will you be subject to early withdrawal penalties? Most retirement accounts impose strict penalties on withdrawals taken before age 59 ½. In many cases it would make sense to work at least up until that age.

Will your money last throughout retirement? This is (quite literally in some cases) the million-dollar question, isn’t it? Retiring early means you will spend more years living on your retirement income. Between the potential for a long life span and the power of inflation, are you sure your money will last twenty or thirty years? Give us a call if you’re considering an early retirement. We can help you run the numbers and decide if you’ve covered all your bases.

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