Here's why early retirement seems like a terrible idea – The Fool Motley

Many financial experts today advocate early retirement, and this approach certainly has benefits. Retiring early means getting back to work, traveling and doing many other things that a full time job can easily hinder.

But early retirement also has a number of disadvantages. On the one hand, you have to plan very carefully. If you retire early, for example in the early to mid-fifties, you will need a source of income outside your IRA or 401 (k) because the funds in these accounts are not available without penalty until now. 59 years and a half. And forget social security – these benefits are only available at the age of 62 at the earliest.

Health coverage can also be a problem for people who retire early. Without employer-sponsored insurance, you could face quite heavy premiums until you reach the age of 65 and become eligible for Medicare.

Of course, there is always the possibility of saving outside of an IRA or 401 (k), and in such a way that you can pay for health insurance up to that point. Medicare be set up. In fact, I make it a point to invest money in a traditional brokerage account as well as a tax-efficient retirement plan because I wish to have the opportunity to benefit from the benefits of the money. 39, some of the savings earlier in life, if the need or desire arises. As such, I could possibly have the option of retiring early if my investments are successful and I still manage to save money year after year.

That said, I still think that early retirement is a bad idea, at least for me, and it's not for financial reasons. Rather, it's because of the potential to really get bored.

The problem of youth retirement

When you retire, there is a danger of getting bored, especially because of long-term boredom, not an occasional week off when you're out of work. is stuck at home without having much to do. Retiring at a time in your life where you may be 40 years old means that you will have to be extremely creative to occupy your days significantly. Even if you retire with a few million dollars, you may be surprised at how quickly you can spend your money, especially if you travel abroad and often indulge in nightlife. enjoy your new free time.

Do not forget that there is nothing wrong with that – provided that it does not expose you to a risk of premature depletion of your savings. But even if the money is plentiful, you may step back and realize that you have a hard time keeping busy with attractive and interesting things to do.

That's why I really do not want to retire earlier and hope not to land in a situation where I would have to follow this path. Without work, I see myself very quickly bored, and I see myself as bad taking the fact that I do not make good use of my days.

Retirees of all ages face a danger. According to the Institute of Economic Affairs, retirement increases by 40% the likelihood of suffering from clinical depression, which stems in part from the feeling of restlessness and dissatisfaction. Frankly, it scares me. In fact, a large part of me thinks that I will never really retire in the traditional sense of the word, but that I will always seek to perform certain functions. Maybe I will not be clocking in the 40 hours (often more) weekly I'm doing now, but I just do not see myself able to work but not to do it.

Others might have a different feeling, and if you are wanting to retire earlier, plan and save. Just be aware that this is not just a question of financial readiness. You will also need to take into account the mental weight of early retirement and make sure that it is really the right choice for you.