These days, the preferred choice is for workers to earn as much as they can, save as much as they can and invest as much as they can. If things go well, the worker in question will put away a decent sum of money and have a great fall back position when he or she retires.
On paper, this sounds like great idea. However, it gets even better if the working man or woman can retire early. The thinking behind this idea lies in the fact that people are living longer and healthier lives. Therefore, it is possible to retire without being tired. More to the point, when people retire early, they have every opportunity to set up a business, invest in partnership and generally continue to earn money without holding down full time jobs.
Advantages of Early Retirement
The person who chooses to retire early may appear to have a much better deal than the one who waits until retirement is forced on him or her. Among other benefits, opting for retiring early means the candidate in question can actually set up a business and make the transition from salary earner to confident investor.
Again, the individual who chooses to retire early will have the opportunity to get into the business world at a much younger age. Thus, if there are mistakes to be made, they will be made when the person is much younger and, presumably, more resilient. If things go well, people who chooses to retire early will have a higher income than those who do not.
Disadvantages of Early Retirement
The basic reason people may avoid taking the early option is fear. Most people are conservative by nature. As a result, they would prefer the sure bet of retirement at the right time to the long shot that early retirement may turn out to be. In any case, not everyone is cut out for the uncertainty of life in the business world. Some people may take the early option and mismanage the capital.
People who qualify for early retirement are those who have who will be at least 50 years old when the retirement takes effect. This category can also include workers who have a retirement plan already but would like to cash in early. In some cases, people can take this option as an alternative to downsizing. All considered, it might be in the best interest of the worker to retire early as long as the process is done the right way.
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