Want to retire before ?normal? retirement age? For that,
you?ll need a larger nest egg than if you retired later because you?ll have
more retirement years to pay for?yet you?ll have fewer years to build that nest
egg. You?ll also have to calculate whether to take Social Security and pension
plan benefits early, which would mean smaller payments.
You may need to replace corporate benefits you lose, such as
life insurance and, if you work part-time or on your own during retirement,
disability insurance. You also may need to come up with health insurance to
cover the gap until you qualify for Medicare. Retiring before age 59 1/2 also
can present tax problems. And you may still have major expenses to fund, such
as a mortgage and college.
The challenges of early retirement are not just financial,
however. What are you going to do all those years? We often find our retired
clients returning to work, often part time, out of boredom.
So although early retirement may sound appealing, be sure
you?ve thought through the financial and non-financial implications before
taking the plunge.
CAUTION: Failing
health requiring long-term care is often the biggest single threat to a retirement
nest egg, so consider buying long term care insurance while you?re in your 50s
or early 60s. It?s more affordable the earlier you buy it.
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