Early retirementsounds promising as well as tempting. No matter how tempting or appealing it might seem, you need to be down-to-earth. Being sensible is something key for your financial situation in your future retirement. Do not do things on the spur of the moment and reflect on the possible pros and cons. Having a look at them can only be beneficial. Making the most of your money and getting as much as possible is essential.
Needless to say that one of the main reasons to put off your retirement is the fact that you love your job. Many people are passionate about their daily tasks and they are fond of doing them every day. Many people cannot cope with early retirement since they will not know what to do with their free time. Some have even made a big name for themselves in their work field.
Then, if you talk to some who have retired early you might come to realize that they do not have enough money. Making ends meet is very hard for many retirees who did it early. Had they known their financial situation would be like that, they would have kept on working. What about your savings? Do you have a nest egg large enough to face inflation and exorbitant prices?
Do you get free healthcare if you claim retirement early?
Unfortunately, those who retire as early as the age of 62 cannot receive Medicare. It will not be until they reach the age of 65 that they can have coverage by Medicare. It might be the case that you are healthy and you do not need any medical treatment. However, if you have not looked after yourself properly, you might have some health-related problems.
What if you would like to get as much as possible for your Social Security payment check? Bear in mind that the older you retire, the higher the amount of money will be. Those who can meet the requirements to obtain the maximum SS payout may want to wait until the age of 70. In this way, they can get as much as possible.
Those who have not got full retirement age or FRA cannot get full retirement benefits. It will depend on the year you were born to see when your FRA is. For most people, 67 years old is or will be their full retirement age. Because those who were born from 1960 onwards have 67 as their FRA. Reducing your age to retire, reduces your income. Therefore, it would be wise to check your savings as well as expenses to see if you can afford to retire early.