Tips for the the Early Retirement

E arly retirement in the United States of America is a common feature. Most residents prefer to retire early before the set age of 65. They do this for their personal reasons or for the benefits that are given in the form of early retirement packages. Early retirement can be forced or voluntary. What to consider in an early retirement package Before an individual accepts early retirement, he or she should consider several factors to avoid regrets in the future. 1. Examine the effects of early retirement package on your pension plan. Calculate any differences of retiring now and several years later to know the best time for retirement. 2. Check if the early retirement package comes with health care benefits. Medical care is a costly affair currently for this reason consider its inclusion in the package. 3. Make sure that you can afford the implications of having to go on early retirement. Will you be able to cope with changing lifestyles? 4. Analyze whether you are mentally prepared to handle the change of not having to go to work on a daily basis. 5. Consider all inclusions in the early retirement package to make a wise decision that will be of advantage to you. Cons of early retirement Retiring early comes with its own risks. It can be disadvantageous because: - Early retirement may mean that the person will not be entitled to medical care benefits offered to those in employment. A person in United States of America is entitled to health care benefits at the age of 65. - Early retirement comes with penalty charges to the persons who had withdrawn from IRAs early. This adversely affects the income of an individual going to retirement. - It is against the set rules and regulations of Social Security. This means that the benefits may take long before they are paid for those retiring early. - If a person had not saved money for early retirement, it leads to living a miserable life. These financial issues lead to massive poverty levels. - It can lead to serious psychological issues of getting to know what you will be doing on a daily basis. Early retirement from the face value is appealing to many people in the U.S. Key considerations given above should be looked at as well as the pitfalls that come with retiring early.