Are you thinking of retiring early? You are definitely not alone!
As a matter of fact, 72% of people in the United Stated ages 45 and above want
to retire in the next 5 years according to HSBC report. However, early
retirement is not for everyone else.
Early retirement must have enough savings, cautious planning,
financial disciple and have a group retiree health insurance. Although
it’s likely hard to achieve, it doesn’t mean that it’s impossible. If you have
enough savings, then it could be the best option for you.
If you are not sure whether to retire or not, check out the below
tips to see if you are entitled to an early retirement.
You Have Enough Budget and You Are Sure of it
There is no other way to start your retirement planning without a
budget. One of the biggest challenges in retirement planning is waiting for
your money to last. One way to work on your money is to be smart about
spending. This is how the budget helps you manage your finances.
Your budget should be able to emphasize how much you need for your
daily living such as utility bills, food and etc. From here, you must be able
to figure out your income requirements to fully enjoy your retirement.
Although it is not enough to just create a budget, you may want to
give it a test. Try living on your budget for 6 months and see how it goes.
That will give you an idea whether the budget is realistic of not.
Have an Income That is Available
The sooner you can start getting a Social
Security retirement, the better. Depending on when you wish to retire. Some may
need to wait several years before they truly enjoy the benefits.
Another thing, do you have other sources of
income to fund your retirement for the meantime? If yes, make sure that those
amounts are enough to cover your daily expenses. Consider having an income to
last at least 30 or 40 years. If you wish to retire early, ask yourself if your
budget will last long? If not, early retirement is not the best option for you.
Have a Group Retiree Health
Insurance
Another worries are having a health insurance.
You can’t be eligible for Medicare unless you are 65. In this case, you will
need to weigh other options to protect you until are entitled to have such
benefit.
One more possibility is that; you can have a
plan with your spouse. If your partner decides to continue working on with his
or her plan, take advantage of this option. Take a look at the policies. Talk
to an insurance agent and help you assess the different options available for
you.
After Retirement
Retirement is fun and brings plenty of time
for your family. There is nothing wrong in enjoying yourself with your loved
ones as long as you stay within the budget. If you are not sure how to deal
with your budget during retirement, you could be at risk for overspending and
often lead to financial troubles.
Always think about your goals in retirement and
how you will be able to manage your time and budget. Are you willing to work
part time just in case? Do you have a hobby that you want to turn into a
business? Create a plan now only on how you are going to spend your budget but
also on how you are going to spend your time wisely.
