Considering Early Retirement - Adviser Investments

Considering Early Retirement

May 15, 2020

Uncertainty persists about when and if the economy and job market will return to normal—it’s left many people pondering (or being forced into) retiring sooner than they may have planned.

Whether it’s a deeply personal decision or a suddenly imposed one, if you’ve found yourself wondering (or worrying) about retiring earlier, here are four general factors to consider:

  1. Get a Handle on Your Expenses. The big concern on your mind is likely, “Will my current savings be enough to meet my goals over the rest of my life?” Our financial planning team is here to help you answer that question. But, a key first step is understanding how much you need to spend on those goals. Our Budget Worksheet can help you get started—it allows you to compare, side by side, your current expenses and income to what you expect to be spending and earning following a lifestyle change.
  2. Remember Health Care. This often goes overlooked when considering retiring before Medicare eligibility at age 65. It’s important to know how you will bridge the gap between retirement and blowing out the candles on your 65th birthday cake—COBRA eligibility through your former employer is often the first line of defense. From there, explore the private marketplace for health plans.
  3. Evaluate Your Social Security Benefits. If you’ve retired ahead of schedule, it may be tempting to file for Social Security benefits early. However, that might not be the best option for your situation. We have a host of content on social security—including a series of three podcasts and a special report—to help you think through the decision. And, of course, we are happy to perform a full Social Security analysis for you.
  4. Explore New Employment Opportunities. Retirement may not mean a full stop. Consulting on a part-time basis has become an ideal career transitional phase for many of our clients. With expertise from your former position and an inclination to work on your own schedule, don’t rule this one out—you may have more options than you think, and we can help you work through them.

With more than 25 years of helping clients find peace of mind in retirement, we know that everyone’s situation is different. Give us a call if you’d like our advice or just to bend someone’s ear about your career time-horizon or anything else that’s on your mind. We’re here for you, and always appreciate hearing how you’re doing and what you’re thinking.


This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.

Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional, or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.

Companies mentioned in this article are not necessarily held in client portfolios and our references to them should not be viewed as a recommendation to buy, sell or hold any of them.

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