Retiring early versus working for as long as possible!!!
What do you think about “retiring early”? The simple truth is that if you want to live to 100 you are going to need more money. This means working for longer or saving more and in some cases both. Times have changed, and the standard model of working in one job all your life and then retiring at the age of 65 (now 67 in some countries) is no longer applicable to our modern times.
The idea that retirement promotes health and prolongs life isn’t obvious for all individuals. Some people say retiring is boring... and others claim it will give them a new lease of life! After all, work provides you with an income, health insurance, a purpose, social interaction and physical activity, in some cases, all contributing factors to your well being. The answer to this life decision is not that simple, so here we will examine the pro and cons of “ Retiring early versus working for as long as possible”.
Let’s find out…
1- Retiring early pros and cons?
Retiring early, the pros!!
- Sleeping longer
- Eating mainly a plant-based diet and having time to prepare and enjoy your meals
- Going for long walks in nature with other retirees or friends
- Exercising regularly
- Travelling more and discovering new places
- Starting a new hobby, or a new career
- Spending quality time with kids and possibly grandkids
- Finding a new hobby, perhaps even discovering what your passion is…
- Ticking items off your bucket list
- Learning new skills to keep up with the digital economy
Retiring early, the cons!!
- Lack of routine
- Having to scrimp and save.
- Lack of social interaction
- Possible mental and health decline
- Having to dip into your savings.. how long will they last?
- Reduced social security benefits
- You may get bored and actually miss going to work
- Having to start medical health insurance.
Here is more…
2- Working for as long as possible, pros and cons!
Working for as long as possible… The pros!
- You get to enjoy your work and your colleagues for longer on a full or part-time basis
- Your body and mind will remain active for longer
- If you have any work benefits (private health, company cars etc.) you will continue to receive these.
- It can be financially beneficial for you and your family to keep working longer.
- You can keep your savings untouched for longer and your social benefits carry on accumulating
Working for as long as possible, The cons!
- If you have an unfulfilling and stressful job, if it’s physically challenging, or simply put if you do not enjoy what you do, well prolonging your work time could have some health repercussions later on in life.
- If you have a bucket list to go through, or travels planned ahead, you could be reducing your retirement time by staying at work longer.
- You could be preventing younger people from advancing in their careers if you look at the bigger picture.
I am only 55 years old and still have at least another 50 years ahead of me. So my knowledge is purely theoretical and based on my research and my beliefs…
Although this list of pros and cons is food for thought, the question still remains, should you retire early or should carry on working after retirement? Calculating saving rate and working years is complicated enough because there are too many assumptions in the equation! How much will you earn? How many children will you have? What will be your average income over your working career? How much do you need to be happy? And the list goes on…
The good news is … That, the answer lies within each and every individual. I strongly believe that it’s all down to your mindset, how you see yourself ageing, how healthy you plan to be, how well you look after your body, mind and soul. Since I turned 50, I have decided to see my next 50 years as a journey of total discovery, a time to learn new skills, to adapt, evolve and always acquire new perspectives on the world we live in and the people that surround us. Working is good for many reasons, but doing something that you love is even better.
I suppose what I am trying to say is that the key to a long, happy and fulfilling life is more about your passion for life, your purpose, your projects and your loved ones than complex calculations about savings and investments…
Take care my friend until next week.
PS. For practical reasons, I will be posting on Tuesdays of every week from now on.