Why you shouldn’t retire too early?
Let’s assume that your retirement days begin next week. What will your daily life be like?
Retirement calculators can’t answer this crucial question. And what will you do 6 months after a relative freedom and novelty of retirement period wears off, when you are tired of traveling, shopping, golfing, or being a lazy couch potato? Most people find it hard to go straight from their productive full-time works to full retirement, especially when they have not developed outside interests and plans.
According to a research, twenty-four percent of retirees said they want to work at least sporadically after retiring. Of those, about half said the reasons they want to continue to work, for example, they want to stay involved and feel still highly productive. About a quarter said they work to keep insurances or other benefits, while twenty-two percent said they want more money to ensure financial security.
Having an idea and plan of what you will do in retirement days is crucial so that you can prevent these common mistakes:
• Realize that your saving account isn’t going to last forever or being forced to immediately go back to work due to financial responsibilities. In the meantime, you have lost out on contributing more cash to your 401(k) - and other employer contributions as well.
• Becoming entirely bored within 6 months, and begging barefacedly for your old job.
When you consider about the right age for retirement and how long you will survive without full income, perhaps you should keep your genes in mind. For people with a history of longevity in their family, they can plan financially to live until 80 or above. (If you are the cautious type; you should do this anyway; although you don’t think you will live that long.)
tags: retire
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