Embrace early retirement
Not everyone is cut out to retire early, while a fair portion of workers dream of the day to come faster. The reality is, statistics suggest that 6% of the retired South African market can uphold the lifestyle they are accustom to, which means early retirement is not always feasible for the rest.
Research recently done by the Employee Benefit Research Institute, based in Washington DC, revealed that 47% of current United States retirees were forced into early retirement, due to reasons such as health and disability problems and having to look after another family member.
That being said, regardless of whether you retire early or not, we also need to account for the fact that retirees are living healthier, active lives, resulting in individuals living up to 25 years longer than their parents. We created this list to not only help you embrace early retirement, but also plan for longevity
Earn money your way
It has been shared that those who retire early are more likely to spend their time productively. You may not have a traditional job that requires you to work from 8am to 5pm; ‘early retirees’ can look at starting their own little businesses, make money off their hobbies, become specialist consultants in their field of expertise or take on a half day position. The opportunities are endless, if you feel like continuing to ‘work’.
Change your plans
Not everything is going to go according to plan. Allow your future plans to have a little flexibility and don’t rush any of your decisions, especially when it involves money. Consider downsizing, lowering your day-to-day cost of living, taking up new hobbies or filling up your day with new activities like becoming more involved in charity work or your community.
Get out of debt, stay there and save
When you are retired, all you want to worry about is the cost of your day-to-day living and not additional debt. With your debt out of the way, you can put your money into investments and savings to help your money start working for you while you relax and embrace retirement. Saving for retirement doesn’t stop even when you are retired. The first annual Retirement Reality Report (RRR) 10X Investments revealed that women are not saving enough money for retirement, compared to men. The findings share that 36% of the female respondents didn’t save or invest, 37% saved cash but did not invest it, and only 16% had invested their savings. It is vital to save before retirement and even more so to save where you can while you are retired.
Enjoy your free time
Don’t feel guilty now that you have much more free time on your hands. Enjoy it! Afterall you worked hard to get to this point in your life.
Retirement is something to look forward to and although you will be stepping outside of your comfort zone, it will be a matter of time before you truly embrace it and have fun.