Thinking of Early Retirement? Here’s a Checklist
Some people dream of retiring early, while others love their job and could keep working for their whole lives. For people born after 1959, the normal retirement age is 67, but that doesn’t stop many Americans from dreaming of retiring early. You can begin receiving Social Security benefits as early as 62, or as late as 70. There are many benefits to waiting until you are older to retire because it gives you more time to save money and pay off debt before your income is reduced. What you hear about less often is the fact that there are plenty of good reasons to retire early as well. Here are five reasons you may be able to retire early.
1. You have the money
This is the most obvious reason to retire early. If you have enough money to retire now and you hate your job, or simply want more free time, then you should go ahead and do it. The general rule of thumb is that you will need roughly 80 percent of your pre-retirement income for retirement, but that number changes depending on your own circumstances. If you have enough money to retire comfortably for the rest of your life without even looking at the bank, great for you, but if you are wondering if you have enough money, try CNN Money’s Retirement Calculator. If you are on the fence about whether or not you can afford to retire early, try setting a retirement budget and living on it for a few months.