As workers approach their peak earning years, many begin to think about questions like “When is the best time to retire?”. Of course, deciding when to call it ‘quits’ is a very difficult decision for many of us, and figuring the correct age to do so can be daunting, if not stressful.
The biggest benefit of retiring early is that it provides us with more time to pursue hobbies, even purchase a yacht or two. Even at age 55, many of us will have worked hard for 30 or more years. It’s nice to be able to relax and enjoy ourselves after spending all of that stressful time in the workplace.
Unfortunately, there is a big downside of retiring early. There may be less time to accumulate retirement benefits, and we may need to save more each year to make this a reality.
What about the decision to retire ‘on-time’, rather than earlier? Of course, this can allow us plenty of time to enjoy a healthy and fulfilling retirement with more time to create a substantial retirement fund. Putting money aside for retirement will be less painful as we watch the power of compounding interest grow our funds.
Whatever the decision may be, retiring from work is a very personal matter. It’s important to balance the pros and cons of the decision using a lot of research and planning!