It’s easy to find good reasons to retire as late as you can but some people use this early retirement checklist to “get out” early.
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Early Retirement Checklist
This way, you can save up more money for your autumn years and feel more comfortable as a result.
It also leaves you with a reasonable time window to pay off debts.
If you love your job, then this is also a big plus.
However, there are good reasons to get off that work duty prematurely, and if you are interested in what they are, here is a simple early retirement checklist.
Money is in the bag
If you have been diligent with your savings, you’ll probably collect enough retirement money sooner than most of your peers.
“Money in the bag” is therefore the best reason to retire early and enjoy your honestly earned free time without worries.
Considering this, you are probably asking yourself whether you should adhere to some general rule of thumb when it comes to the amount of money you need on your account (or in the mattress, whatever works for you) before you are in the green to retire.
To feel safe enough, you should probably assume you’ll be living on 80% of your pre-retirement income.
However, this is not set in stone and it all depends on the ever-changing circumstances.
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Health insurance is solid
Check if your health insurance covers all the conditions you feel comfortable with.
This element can be a stumbling block for many people, but it is also not an insurmountable factor if you are married.
In this case, if your spouse or partner has an option to purchase a family health insurance package, you can discuss the possible new circumstances – which see you retiring while your better half continues to work.
If you are an entrepreneur, and you have been running your own business for a while, you are probably paying for a private health insurance. In this case, you are well aware of how costly these sorts of packages can be.
Even if you have never dipped into the tempestuous ocean of private business, you can still apply for that private healthcare, but just be aware of the financial ramifications – it can compromise the first item on the checklist, and it’s desirable if you have all five of these checked.
No debts on your back
To come out of the tail-end of your decades long work period “debt free” is something approximating a miracle.
A life in the 21st century is a minefield of investments and shiny credit cards.
So nobody will blame you if you have a particularly hefty financial ball and chain you’re dragging into your autumn years.
However, this unfortunately means you should reconsider retiring early.
In an ideal world, your mortgage is paid off and you can afford to browse through amazing retirement village homes on Central Coast as you plan your next idyllic step.
To get there, you’ll need to take hard look at your expenditures at the end of each month.
If you are looking at clean utility bills, you are eligible for an early retirement.
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Nobody depends on you financially
You can throw all of the aforementioned factors to the wind if you have someone who depends on you financially.
This is not uncommon.
Many people approaching retirement are still supporting their children and or their grandchildren during their final years of service.
This is not necessarily a hallmark of bad parenting.
This modern economy is volatile; forces family units to stay connected financially when the logic dictates members should be independent.
Furthermore, when grandchildren reach college years, all sources of income are precious when paying off gargantuan scholarships.
Finally, a specific issue needs to be addressed here – if you have an adult child that is perfectly healthy and capable to work, with reasonable education under their belt to boot, you should see about severing financial ties with them.
Your approach depends entirely on you, it can be a sobering act of sudden severance or a gradual process.
Your comfort should simply not suffer because someone’s unwillingness to make an effort.
Set the appropriate financial boundaries with your family to pave your way to an early retirement.
We are all victims to the passage of time as we approach our retirement years.
At the precipice of the third age, every year becomes precious.
So you should really think about whether it’s worth burning that time on work banal work hours.
This goes double for all of you who are not particularly enamored with your work.
Early retirement might be the exact thing you need to get a boost in your life.
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