Although the average retirement age is 62, more working people are choosing to retire much later in life for financial reasons. On the other hand, some people choose to work towards an early retirement. It may sound like a dream, but by putting a plan in place and sticking to a budget, it’s certainly a possible reality. If you’re approaching what you’re hoping is your early retirement age, the following are some times that you might be ready:
You have health insurance
In addition to your Social Security payments, your Medicare benefits won’t kick in until official retirement age, so you’ll need another way to receive coverage in the meantime. If you were receiving health insurance through your employer, for instance, it might be time to begin shopping around for an independent plan. After all, if you retire early, you eventually won’t be eligible for your employee benefits anymore. Whether you’re receiving coverage by joining your spouse’s insurance, or you already have your own independent health insurance lined up, it will be one less thing to worry about by retiring early. On the other hand, if your post-retirement health insurance options are rather limited, and you’re having trouble finding an affordable plan that meets your medical needs, you may want to wait on retiring.
You’re ready emotionally
It’s crucial to be prepared financially before you can retire, but are you ready emotionally? For most people, working has been a big part of their lives and they’ve grown accustomed to the daily routine. It can be especially difficult to leave a job that you love, or one that you’ve had for many years. If you’re not quite ready to let go just yet, reconsider an early retirement. But if you feel completely ready emotionally, then early retirement can be a good decision.
You’ve successfully tested out a post-retirement budget
Before making any final decisions to quit your job and retire early, test out your new budget first. Pretend as though you’ve already retired, and live off of what money you’d already have, plus any income you’d have coming in. If your bills suddenly feel like they’re too much to handle, you may want to wait on retiring a bit longer. But if you test out your post-retirement budget and it’s a success, you may be ready for early retirement.
Do you have dreams of early retirement, but need extra cash to make it possible? Whether you have expenses to catch up on or debt to pay off, Peachtree Financial Solutions may be able to help if you’re receiving structured settlement payments. Contact Peachtree Financial Solutions today to learn more about selling some or all of your future payments for a lump sum of cash.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.