For those who can’t face the prospect of decades of drudgery, is there a case to be made for early retirement? And how might that be achieved?
Reasons to retire early
In practical, financial terms, early retirement makes no sense in almost every situation. For even a basic standard of living in retirement, you need a pension pot worth hundreds of thousands of pounds. The earlier you start saving, and the longer you keep it up, the better your quality of life once you retire.
But there are cases where early retirement might make sense as a lifestyle choice. For one, just because average life expectancies are rising doesn’t mean you’ll necessarily make it that far yourself. If you do have the funds, there’s something to be said for limiting your working life.
Alternatively, you may have a health condition that means you either know you won’t have a long retirement if you stop working at 70, or there’s a strong chance of it. Equally it may become difficult to work. Although more people than ever are still healthy in their 60s and 70s, not everyone is.
Or perhaps you’re facing redundancy. Despite good intentions, it is more difficult for older workers to start afresh in the jobs market. Early retirement, even with a lower income, could be a lot more appealing than retraining. Continue reading