Image via WikipediaEarly retirement may not be for everyone, but it certainly was for me, and after you read this, it may well be at the top of your "to do" list as well.
As I have mentioned before on this blog, I retired at age 55 (two years ago). Many people have a date or age in mind, usually between age 60 and 65. Some will work their entire lives. The only thing I regret about retiring at age 55, is that I did not retire at age 50. You see there is direct evidence that life expectancy greatly increases for those who chose to retire early.
Now, if you "want" to work beyond 55, or even 65, good for you! However, I want to share with you the results of this scientific study conducted several years ago, of approximately 4,000 retirees from several large companies including Boeing.
Without getting into all the details, (see the link at the end of this article for details) essentially, the study found that, people who stayed in the rat race (workforce) beyond the age of 55, lost 1.6 years of their lives for every year worked until 65. In other words, compared to the "Freedom 55" crowd, those retirees in the study, who chose to work until age 65, died, on average, 16 years earlier!
I know! I was blown away by that figure as well!
Now let's list some tidbits (besides the obvious health benefits) that may help you make the decision to retire early:
1. In 1999 dollars, the average child will take approx $100,000 to raise.(when will your nest be empty)
2. The cost of raising a medium-size dog to the age of eleven: $6,400
3. The cost of smoking a pack a day, for 25 years: $100,375 (why not invest it)
4. If you live in Canada, you can receive the CPP at age 60 instead of 65.(Heres the strategy: take a small fund, turn it into a RIF and pay yourself the equivalent of your CPP until it actually kicks in at age 60 - One of your "multiple streams of income")
5. Couples: Instead of having "two" life insurance policies, you can now buy a "first to die" policy, thus reducing your overall cost.
6. Workers, on average, (who don't brown bag it) spend $75 to $100 on lunch and coffee, every week.($3650.oo per year)
7. In Canada, you can now split pension income with your spouse, thereby reducing your overall tax burden.
8. On average, people spend $6 per day on lottery tickets. ($2190 yr)
9. Grocery shopping on Wednesday (as opposed to Saturday) can save you as much as 20%, as well as the aggravation of lineups.
10. Only one car is often needed for a retired couple.
11. You won't be commuting, everyday, during rush hour.You avoid the stress and you save up to $10,000 per year usually spent on the commute vehicle.
12. People 55 and over get reduced rates on Cruise and other vacations . (I will show you in a later Blog how to get those vacations for as much as 50-70% off.)
If you feel you "have to have a place to go" when you retire, then volunteer. Volunteering gives you a sense of giving back, and adds to your overall sense of well being and good health.
Don't fall into the trap of thinking you will have to work forever. Retirement living is a lot less expensive than living in the rat race, and living 16 years longer certainly appeals to me. How about you?
Here is the link to the study about Early Retirement
And here is a link to another interesting article, Fewer People dying!