Top Five Fears of Those Who Retire Early

Retiring early is something we all think about but never have the courage to go ahead with it. The reasons is many but primarily it is because of fears that plague us and we keep pondering what will happen if we retire early.

Here are the top fears of those who retire early:

1. Early retirement is seen as a large increase in the cost of healthcare and health insurance. No doubt this is a legitimate fear. You will be able to do without a new car or a yearly vacation but you will not be able to cope with the pain in the hip requiring a hip replacement surgery. Unfortunately, healthcare costs are unavoidable and it affects any and everyone retiring, not just those who retire early. That is why it is important to plan for early retirement if you want to hang up your gloves before any of your peers.

2. Seeing cutbacks in Social Security benefits or increase in tax. Unfortunately what lawmakers are going to do down the line is practically unknown. Any changes in taxes or Social security laws will affect all workers but it tends to affect those planning early retirement all the more as they do not have that many options available.

The best way to handle this early retirement fear by not counting on Social Security at all and should you get it, treat it as an bonus rather than depending on it. Plan your retirement income in such a way that you do not depend on Social Security to help you financially each month.

3. Once resignation is handed, it will be impossible for you to return to a workplace. Just because you resign or retire early does not mean that you lose all your capabilities and skills. If you change your mind and want to return to work, you will be able to do so. However, it may not be at the same position. You will be able to work at a few rung lower; but returning to work is always an option for anyone retiring early.

4. Incurring financial responsibilities for children that were not anticipated when doing financial planning. The fact remains that if you retire early, the possibility of having children is there after retirement. That is why it is important that you factor in the financial responsibilities when you are planning your early retirement.

5. Early retirement means experiencing boredom. This is a problem faced by many people who retire early. However, early retirement should be looked at from a different perspective. It is a new of living and you have to give enough thought of what you want to do after you retire. If you do not know how you will spend your time after retirement, you are not at all prepared for retired life.

About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality financial tips like :Tutorial on Globalization and International Business and Thailand Shipping Company

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