As life expectancy around the globe increases, so does the average age of retirement. In countries like Australia, the US, and the UK, the average age of retirement is 62, based on the findings of Aperion Care. For many, this age can be too steep or too late. The concept of early retirement is something that is commonly desired but is it something that is achievable?
The Appeal of Early Retirement
Early retirement is more than just the picturesque idea of lounging about at some beach somewhere. For many, it’s about their health. Early retirement has been known to drive down the occurrence of serious diseases by a minimum of 20%, based on the findings of a recent US study. Beyond health, it’s about finding better ways to sustain and fund their living after they’ve said goodbye to corporate life. Early retirement is an appealing concept, but the way to attain it can be paved with confusing and challenging bricks.
Peeking behind the veil of appeal, there are a lot of misconceptions regarding early retirement. One of the biggest misconceptions is the idea that you stop working completely or stop making money once you’ve retired. The usual ways to earn money ends with formal retirement but there multiple ways to earn without being actively engaged or tied to a desk like freelancing or investments. It can also mean opening up your own business.
Is Early Retirement Possible?
The short answer to this is: YES. However, it is something that requires extensive planning and strong mental fortitude. The capacity to earn may not be as large or as steady after you retire. Yet, the retirement spending may only increase with time once you factor in healthcare costs and living expenses. So what can someone who hopes for early retirement aim for?
Smart Yet Simple Steps
If you’re thinking of retiring early, it’s best to start as early as today. Those that are able to retire in their late thirties live on only less than 50% of their income and set aside the rest for savings, based on the market study of NerdWallet. It also helps to calculate what you’ll potentially spend once you’ve retired. That way, it is possible to make plans regarding any adjustments necessary to current lifestyles and spending.
There is no denying that early retirement will continue to be appealing for all that has ever had to earn a living for themselves. It all comes down to how much you want it and what you’re willing to sacrifice now so that you can obtain the end goal. The goal being, of course, the highly coveted retirement before you hit your sixties.