The Benefits of Retiring Early

Even though inflation has soared and gas prices have skyrocketed, some older workers find it more harmful than beneficial to hold on to their jobs. Money is still coming in, but at what cost to your mental or physical health?

According to Riley Rindo, senior wealth adviser and director at MAI Capital Management, people are becoming worried that they don’t have a plan in this economy. Their panic is causing them to hang on when they could retire and be perfectly fine.

It can be scary to consider retiring, especially if it lasts more than 20 years. The longer you remain employed, the more socially connected you will be and the more money you will make. Despite this, sometimes retirement is the better option, mainly if these signs apply.

1. You’re disinterested in the job.

In addition to a paycheck, work should give you a sense of purpose. However, it’s lost its luster for many people who have been in the same job for decades. You may have reached the end of your career if going to the office no longer brings you joy. Or logging on for the day fills you with dread.

If you’ve become resentful of your daily tasks at work or find it hard to get motivated at work, that’s particularly true. When you are 60 or 62 years old, a bad day at work can be your last day. It’s not very productive to just be motivated because you think you have to work.

2. Your health is suffering.

Many people have plans for their golden years, including traveling the world, moving closer to their grandchildren, relaxing at home, or starting a second career. As well as money, decent health is also necessary to achieve those dreams. Now may be the right time to retire if your health is suffering and you can afford it. Don’t let your hard-earned savings go to waste by waiting until you can’t enjoy them.

It can feel like you’ve wasted your remaining years, especially if you’re dealing with chronic conditions or a health shock you weren’t expecting, according to Matthew Rutledge, an economics professor at Boston College.

3. You’re burned out

Burnout is one of the primary reasons older adults make the leap into retirement, regardless of how physically taxing their jobs are or how much brainpower they require. Stress can lead to many health problems, including hypertension, heart attacks, and strokes. The scientific journal PNAS reports that stress can accelerate the natural aging of the immune system in older people, increasing the risk of cancer, heart disease, and infectious illnesses such as COVID-19. ​

 4. You’ve saved enough for retirement

There are times when you have enough pennies to leave the workforce comfortably but are afraid to take the plunge. Over the past year, inflation has reached a record high of 9.1 percent, and gas prices are still high, but if you have enough cash to live comfortably in retirement, hanging on may be counterintuitive. There is no point in having money that outlives you.

5. Technology is causing you stress.

In today’s world, technology plays an integral role in how we work. We still conduct meetings via videoconference and chat apps even when we are back in the office. Real-time response is expected, and always-on is becoming the norm. Technology can be overwhelming and stressful for older adults who aren’t used to it. This is also a reason to retire. Rutledge says remote work will keep some employees in the workplace and drive others out.

6. You have no debt

The position of being debt-free when approaching retirement age is a desirable one. This is one of many reasons some people decide to retire. They don’t have to worry about mortgage payments, credit card debt, or other recurring bills. After achieving peace of mind, they decide to retire.

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7. You want to pursue a second act.

There are many benefits to continuing to work, but you don’t have to stay in your current career. People are retiring to pursue second acts, whether a new career, part-time work, volunteering, or starting a business. Additionally, they want to use their accumulated money to travel, pursue hobbies and fulfill other dreams.

Rutledge says working longer is a good solution for people financially, but there are trade-offs. As a result, they don’t get to have the fun they deserve.