Most people literally count down to the day they will retire from employment. They cherish the thought of not having to wake up at the sound of an alarm, or follow the routine that defines going to work. Others decide to hurry the process by opting for early retirement. However, most people often come to the realization that they made the choice too soon. Some of the signs that you should have probably held on a bit longer include:
You Are Bored:
When people think of early retirement, they imagine a life of freedom. Most people often talk of the traveling they will do, the hobbies they plan to pursue, and other things they hope to achieve when they finally stop working. If you are one of those people who had an elaborate plan in your mind, but are now realizing you are bored, then you probably retired too early. This often comes when you had a knee jerk reaction and decided to retire before you laid out proper plans on how exactly you will spend every minute of your time. If you constantly find yourself feeling restless and seeking distractions from places you never imagined, your timing for retirement was not right from the start.
You Are Struggling With Your Medical Bills:
Healthcare is expensive. One of the perks of having a job is that most work places have a comprehensive medical insurance plan. If you retire early, chances are that you will not have medicare that caters for retirees. You will be on your own, struggling to pay medical bills. This can be overwhelming, especially if you do not have a good financial plan to bail you out in case of illness. If you find yourself dreading your doctors’ appointments, or getting worried when you think you may be sick, you definitely retired before you were ready. Before you sign that retirement form, ask yourself if you are in a position to take care of all your medical bills without getting broke.
You Are Dipping Into Your Nest Egg More Than You Should:
Financial experts often advise that annually, you should only be withdrawing 4% of what you saved. It is the only way you can cushion yourself against tough financial times. Are you able to do that? Or do you find yourself digging deeper and withdrawing more? If the answer is yes, then you need to slow down and ask yourself if you can sustain retirement. Think of the years ahead, and how much of your saving you will have in the next few years. If you do the calculations, and the sum you get does not look promising, you should start thinking of a back-up plan. It means you retired too early, and you may either need to change your lifestyle, or take up another job.
Early retirement is a personal choice, and can be fulfilling if you have a plan. However, if you choose to go home, without knowing where you will get money, or how you will keep up with the free time, you may sink into depression.