two person walking towards mountain covered with snow

Want to retire early—that is, before “normal” retirement age? The big challenge—a problem most of us are glad to have— is that we’re living longer. Retire in your mid-fifties and you could live 40 years or more in retirement.

For a longer retirement period, you’ll need a larger nest egg than if you retired later, yet you’ll have fewer years to build that nest egg. Early retirement means smaller monthly Social Security benefits. The same applies to traditional pension plan benefit amounts.

"For a longer retirement period, you’ll need a larger nest egg than if you retired later." people tossing their clear wine glasses

If you retire early, you may need to replace corporate  benefits you lose, such as life insurance and, if you work part time or on your own during retirement, disability insurance. You also may need to come up with health insurance to cover the gap until you qualify for Medicare at your normal retirement age. Retiring before age 59-1/2 also can present a tax problem, since taking money out of your retirement plans may trigger a 10% tax penalty. And you could still have major expenses to fund, such as a mortgage and college.

Retirekit CTA

The challenges of early retirement are not just financial, however. What are you going to do all those years? Many financial planners find their retired clients returning to work, often part time, out of boredom. So although early retirement may sound appealing, be sure you’ve thought through the financial and non-financial issues before taking the plunge.

 

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/planning-for-the-stages-of-retirement-e-brochure


This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, Alcatel-Lucent, AT&T, Apache Corporation, Altria, Avaya, Baker Hughes, Bayer, Boeing, BP, Bristol Myers Squibb, Chevron, Concho Resources, Hughes, fidelity.com, Wyeth, Northrop Grumman, Merck, Raytheon, Coca-Cola ,Qwest, Pfizer, Caterpillar, ConocoPhillips, ExxonMobil, Sempra Energy, San Diego Gas & Electric Company, Southern California Gas Company, Ameren, Anheuser-Busch, APL, Bank of America, Blackhawk Networks, Caterpillar, CenturyLink, Chevron, Citigroup, Clorox, Coca-Cola, Colgate, Con Edison, ConocoPhillips, Dexone, ExxonMobil, GlaxoSmithKline, Halliburton, Hewlett Packard Home Depot, Honeywell, HP, IBD, Johnson Controls Kaiser Permanente, Kimberly-Clark, Kinder Morgan, Lockheed Martin, McCormick Spice, Merck, Monsanto, Northrop Grumman, Occidental Petroleum, Pepsi, Pfizer, PG&E, Phillips 66, Phillip Morris, Qwest, Raytheon, Royal Dutch Shell, Safeway, San Diego Gas & Electric, Schlumberger, Scotts Miracle Gro, Sempra, Siemens, SoCal Edison, Sony, Southern California Edison, Teradata, Toyota Motor Corporation, Tropicana, United Parcel Service, Verizon, We Energies Group, Wisconsin Energy, Wyeth, Verizon or by your employer. We are an independent financial advisory group that focuses on transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

The Retirement Group is a Registered Investment Advisor not affiliated with FSC Securities and may be reached at www.theretirementgroup.com.

TRG Retirement Guide

Tags: Financial Planning, Lump Sum, Pension, Retirement Planning