Personal Finance/Wealth Creation/Life Lesson

The Disadvantages Of Early Retirement

The advocates of late retirement mentioned the loss of meaning after closing the door on your career.

When we say, early retirement, what age is ideal really? Here we are not talking about early retirement that is due to ill health or any other health-related issue, but just looking at closing the door on our career to pursue a life of pleasure amid free time. This is the thinking of the new-age advocate of the FIRE Movement. FIRE stands for Financial Independence Retire Early.

The FIRE movement advocates extreme savings (up to 70% of their income) and investment procedures/programs that will result in huge financial gains, to enable one to retire earlier than an average person.

The Secret of longevity and an active mind is NEVER RETIRE BUT RE-INVEST YOURSELF, and some claim there are load of research to back this up. The research by Dan Buettner started with the people of Okinawa and other blue zone areas.

Blue Zone Countries are where the world's healthiest and oldest people live. Examples are, Ikaria in Greece, Loma Linda in California, Okinawa in Japan, Nicoya Peninsula in Costa Rica and Ogliastra Region in Sardina.

Can We Really Influence Longevity?

The researcher says YES. He agreed that while most of the time we spend on Earth depends on our genes, (DNA), our lifestyles play a huge part too. Gene is the loaded gun, but our lifestyle pulls the trigger. Luckily for those of us living today, the United Nations is expecting more and more people will live well over 100 years.

These residents still live an active life by hunting, fishing and harvesting their foods locally. These traits are noticed in their lifestyle:

• These people have a deep sense of purpose, to get up in the morning, and have a longing to contribute their share for the day, a feeling of being useful to their community.
• Their community and social interaction are huge, they communicate, enjoy and laugh with each other.
• Their foods consist of whole grains, fruits, vegetables, and healthy oils, which means healthy eating is a must for them.
• There is a strong family value and interest in each other. They enjoy the active outdoor lifestyle.
• They concentrate on helping others, and give generously to the community to keep active, no matter their age.

Benefits Of Early Retirement

Although the ideal work balance is to ensure one keeps active with or without paid work, the following benefits can be achieved if one is free from work:

Freedom from work deadlines and work submission. This can sometimes be daunting, especially if you have a boss who is not flexible or understands work-life balance. This new freedom allows you to use your time as you want.

Having Your ‘ME-TIME’ — allows you to pursue your passion, and hobbies and travel the world, which you would have done if you had not been tied down to work schedules.

Opportunity for a side hustle is possible in other not to be idle. Engaging one’s mind and keeping active is a must during retirement, otherwise one deteriorates.

Bad Sides Of Early Retirement

Lack of engagement can lead to loss of sense and purpose. Lack of engagement can also bring an early onset of some illnesses and or boredom.

If one is not cautious about spending, one can easily be out of funds. Since income is reduced, spending must be limited.

Feeling lonely and inadequate, especially for those who have built their life around their work. They miss colleagues, office jokes and the general interaction of the office environment.

You must consider inflation which will bring the value of your pension fund down.

Are we sure we will not need additional funds for our care in old age? The future is uncertain, and we will not be able to predict our health as we age, to accommodate additional funds for our care in old age.

Another related post by the same author:

The Takeaways

• Many retirees said they are busier in retirement — with personal and philanthropic work — than they were before they retired.
• You may think that getting away from a toxic work environment and a job you detest may sound enticing, but there are plenty of financial and social considerations to consider as well.
• Some colleagues, family members and friends can see you as lazy if you opt to retire early.

DISCLAIMER

Although great research has gone into this post to give the true and genuine substance to it, nevertheless it does not still represent professional advice in any way. Please consult your professional finance expert about any money concerns that you have. It is therefore given for readers’ interest and entertainment only. Thank you.😑

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