Want to retire early but
worried about the consequences - read this article on retiring early.
Fed up with working for a living - take early
retirement
Early Retirement: What You Should Know by:
Stanley Emerson
For many reasons, more and more people are
opting to retire at an early age. The growing trend for the retirement is based
on the fact that people are enticed to retire early than continue working and
wait until they reach their retirement age of 65.
In fact, most of the surveys conducted in the United States asserted that 60% of
the respondents would love to retire at an early age.
In reality, there are many benefits that people can derive when they retire
early. However, there are also many consequences that result from early
retirement. What they do not know is that early retirement has the potential of
bringing more problems than reaping in benefits and advantages.
Here is a list of some of the reasons why retiring early can be a pretty risky
activity.
1. Not in accordance with the regulations of Social Security
When people will retire at an early age, there is a great possibility that they
cannot immediately obtain their Social Security benefits. This is because
according to the rules and regulations of Social Security, anyone who is born
after 1938 will have to wait longer than their retirement age of 65 before they
can get their benefits.
Hence, early retirement may only contribute to a negative upshot if the older
people’s finances where not managed properly and the only thing they expect to
help them are the Social Security benefits they can get.
2. If people who took early retirement get sick, they cannot acquire some
Medicare benefits.
This is because the age when people can get their Medicare benefits is when they
already turn 65. Hence, if they are hospitalized and they have already filed for
their early retirement, they have to obtain the necessary amount of money in
order to cover the expenses in the hospital without Medicare.
3. Penalty charges apply to those who retired early and had withdrawn their
IRAs early.
For people who would like to retire at an early age and wish to obtain their
IRAs, they have to face a hefty 10% penalty charge.
Moreover, experts contend that the nest egg of people who wish to retire early
is only 80% of what they should be getting when they retire at the age of 65.
The bottom line is that early retirement is, indeed, a personal choice and
preference of an individual but one must consider the factors that may affect
their life in the end.
About the author
Henry Clark can show you how to make the most of your retirement years.
Visit his website and learn more
http://www.push-button-online-income.com/retirement
Source:
www.isnare.com