Retiring early versus retiring later

8 April 2019

A Great Evening with Great Friends

Dreaming of early retirement? Are you a part of the growing population wanting to work longer and retire later? Everyone has different aspirations, financial goals and retirement plans, which means that there is no right or wrong choice. We’ve taken a look at both options and weigh in on some of the elements to keep in mind when choosing.


Retire early

With the life expectancy extending year-on-year, especially as individuals are taking care of their health and wellbeing; when retiring early, you need to make sure you are prepared for the long haul. Every person has different financial statuses; some opt for early retirement because they are financially equipped, while other employees may be put into a position where they will be required to retire earlier than expected. Regardless of your financial status, when retiring early (around 45 – 50 years of age) you need to consult a financial advisor and consider how you will ensure you have enough capital to last you 30 to 40 years.  Retiring early means you will have a lot more time on your hands; and you certainly don’t want to fall into the trap of doing very little early on. Consider how you will spend your time, how you can remain social and engaged with your community and how you can still lead a fulfilling and purposeful life?


Working past retirement

According to 10X Investments, a survey they conducted in 2018 revealed that 41% of the working South African population have no retirement plan in place. Although this may be the case, an international trend is forming where employees are wanting to work into their retirement years to keep mentally engaged, connected and purpose-driven. When deciding to work longer there are some aspects to consider; once you do decide to retire after years of working, how will you remain as mentally active as you have been? Before you retire, at least 5-years in advance, you need to get involved in community activities and find a hobby or two that you enjoy doing so that by retirement, you are ready to keep your mind and body active and your social life alive. Finances are another concern for many, and regardless if you have saved from early on or later in life, it is important to consult a financial advisor on ways you can comfortably retire and lead a lifestyle within your means.


Regardless of your retirement goals and aspirations of retiring earlier or later, the key to a successful retirement is to prepare as much as possible. There will be aspects of life that may require some adapting to, however the more prepared you are the easier the transition will be.


Share this:

Leave a Reply