5 Common Reasons People Retire Early

Depending on who you are or what your plans are – some people expect that they will be working until the very end, while others are preparing themselves for retirement as soon as they hit 65. Whatever the case is, whether it is your decision to retire early or if other factors change your original plans – the most important thing is to be prepared.

Here is a list of some of the 5 common reasons why people retire early.

1.  Health reasons: Many individuals don’t plan on retiring early due to health issues, especially since you may be a picture of perfect health right now. However, many early retirees do it due to  health issues, which includes injury on the job, health issues stemming from a sedentary job, or other illnesses that may come up later in life.

2. To Become a Caregiver: Maybe it’s not your health that is declining, but some workers may choose to retire early to become a caregiver to a family member or spouse whose health is declining. Because an in-home professional caregiver can be expensive, most families will choose to depend on themselves to help the ailing family member. Caring for sick or ailing family members can take up a lot of time and energy, so the decision to retire may be the best option for some.

3. Layoffs: Being laid-off is never easy, unfortunately, those who are closer to retirement age are finding it harder to find jobs with comparable pay to continue to meet their needs. Many companies are looking to younger professionals or recent graduates who are willing to do the same amount of work for less pay. Because it can be difficult to find a job, many older professionals find that retirement may be an easier option than continuing the job hunt.

4. Finding dissatisfaction in their job/career: For whatever reason, you may feel like you are no longer happy in your career/job. Whether you feel like you are no longer being appreciated in your job or you are in a work environment that is less than stellar, then retirement is probably on your mind. However, instead of retirement, another option is to look for another job or even explore new career options.

5. The need to pursue dreams: Have you dreamt of becoming your own boss? Would you rather spend your time traveling the world and volunteering rather than be stuck in a cubicle? Or do you have the next great idea that needs a lot of time and work to put into? Whatever it is, you feel that retirement is the perfect solution to put the time into pursuing your dreams.

Whether it is a planned early retirement or retirement is beyond your control – the important thing is to plan and be prepared. Here are some ideas on how you can prepare for early retirement.

1. Look into “semi-retirement.”: Instead of going into full retirement mode, one option is to look into doing part-time work. Whether you are able to scale back your hours at your current job for part-time work or you are able to secure a part-time job somewhere else, you are still finding the time to do what you need to do while earning money.

2. Reverse Mortgages can help: If you are over 62 years old, you own your own home and you have substantial equity in your home – a reverse mortgage can help provide you the extra funds whether you are planning for your retirement or finding that you are in a financial predicament. With a reverse mortgage loan, you are able to continue to live in your own home, without having the need to make monthly payments to the lender. Also, with a reverse mortgage, you can use the money however you please, which includes traveling, paying for bills, paying off the mortgage or buying a new car. It is there for you in your retirement.

3. Examine your budget: For anyone planning their retirement, whether it is in the short-term or long-term, it is important to look at your budget and decide what needs to stay and what needs to go. An examination of your budget and how much you spend every month and how much you plan to spend during your retirement would help ease the transition from work to retirement, even if you didn’t expect it to be so early.

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