Retiring Too Early

After years and years of hard work, it’s only natural to want to retire and enjoy your newfound freedom. But retiring early is not all sunshine and rainbows. In fact, early retirement comes with two main drawbacks. One of them is that the earlier you retire, the less time you have to put money aside for your golden years.

The second disadvantage concerns your Social Security payout. It’s true you can retire as early as 62, at which time you start receiving Social Security benefits, but the payout amount is conditioned by your age. For instance, if you should retire at 67 but you stop working at 62 and receive retirement benefits, your monthly benefit will decrease by 30%. That’s definitely not peanuts money!