What are the benefits of retiring early in life? The prime ones have been presented in here.
Retiring early is every man’s dream. The thought that keeps a person going through decades of a grinding jobs and hard work, is the freedom he will get one day, to do what he wants. Early retirement is an opportunity and time to explore more dimensions of yourself.
That is just one of the benefits. It is getting out of a rut of an old job and breaking into unexplored territories. The decision cannot be made, unless the person has enough financial security for the future. The only way to achieve it is through systematic financial planning.
Some people are lucky enough to find a job or set up a business in a field that they are very passionate about. For them, the job does not remain a job, it’s pure pleasure. Those kind of people can never retire as one does not stop doing something that one loves.
However, such people are very few. Most of us drift into and out of jobs, according to the money factor or rather following the money trail. We keep stocking and saving money the whole life, for a home, for family, and for future security.
However, a time comes, when you feel that you have saved enough and you have done enough. You feel like following your heart, rather than money, once and for all. This is the point where one can think of an early retirement. It has copious benefits.
As the old adage goes, the harder one works, the luckier he gets. So the harder you work in your early years, more will be your retirement benefits. It is all about how well you plan and execute your ideas in life. Here are the benefits which one can enjoy.
By company laws in USA, the financial benefits of early retirement, can be paid to a person, if his age is at least 55 years. This is, assuming that he or she has at least worked for 5 years with the company. The sum of money, that you get as compensation from the company, before age 62, is lesser than what you would get after it.
However, this is a small price to pay, for the extra time you get after retirement. As they say, time is money. Your social security benefit will also be lower in proportion to your retirement benefit amount, from the company. Setting up an individual retirement account (IRA), while you are working, will go a long way in supporting you later.
More Time for Family
When you are working, you barely get time to be with your family and often miss the important moments of family life. However, retiring early lets you spend more time with your spouse and kids.
Take up a New Career or Hobby
Early retirement opens up that long awaited opportunity to do things you always wanted to do, but had to put off due to a job. Take up a hobby that you enjoy or an alternative dream career that also earns some money on the side.
These are some benefits of retiring early, that you may enjoy, if you have planned and saved in the early years.