Early Retirement What You Should Know

Early Retirement What You Should Know

Early Retirement: What You Should Know
For many reasons, more and more people are opting to​ retire at​ an​ early age .​
The growing trend for the retirement is​ based on the fact that people are enticed to​ retire early than continue working and wait until they reach their retirement age of​ 65.
In fact, most of​ the surveys conducted in​ the United States asserted that 60% of​ the respondents would love to​ retire at​ an​ early age.
In reality, there are many benefits that people can derive when they retire early .​
However, there are also many consequences that result from early retirement .​
What they do not know is​ that early retirement has the potential of​ bringing more problems than reaping in​ benefits and advantages.
Here is​ a​ list of​ some of​ the reasons why retiring early can be a​ pretty risky activity.
1 .​
Not in​ accordance with the regulations of​ Social Security
When people will retire at​ an​ early age, there is​ a​ great possibility that they cannot immediately obtain their Social Security benefits .​
This is​ because according to​ the rules and regulations of​ Social Security, anyone who is​ born after 1938 will have to​ wait longer than their retirement age of​ 65 before they can get their benefits.
Hence, early retirement may only contribute to​ a​ negative upshot if​ the older people’s finances where not managed properly and the only thing they expect to​ help them are the Social Security benefits they can get.
2 .​
If people who took early retirement get sick, they cannot acquire some Medicare benefits.
This is​ because the age when people can get their Medicare benefits is​ when they already turn 65 .​
Hence, if​ they are hospitalized and they have already filed for their early retirement, they have to​ obtain the necessary amount of​ money in​ order to​ cover the expenses in​ the hospital without Medicare.
3 .​
Penalty charges apply to​ those who retired early and had withdrawn their IRAs early.
For people who would like to​ retire at​ an​ early age and wish to​ obtain their IRAs, they have to​ face a​ hefty 10% penalty charge.
Moreover, experts contend that the nest egg of​ people who wish to​ retire early is​ only 80% of​ what they should be getting when they retire at​ the age of​ 65.
The bottom line is​ that early retirement is, indeed, a​ personal choice and preference of​ an​ individual but one must consider the factors that may affect their life in​ the end.

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