Early Retirement – Are you ignoring the risks behind it?
Most of our retirement planning revolves around retiring around 60–65 years, assuming our future circumstances will be the same as they are today.
But what if they aren’t? - What if you face a sudden layoff? What if your health conditions took a turn for the worse? What if you just don’t want to work anymore after 20 years of toiling away?
What if you were forced to retire early at 40 or 45 years because of these unforeseen misfortunes? An unplanned or forced early retirement can be financial suicide if you are not ready for it.
Early retirement comes with consequences:
Early retirement means not only a decade less hard work but also a decade less earnings, and it can cause financial instability and emotional distress due to the loss of a steady income.
These consequences affect not just those who were forced into early retirement, but also those who chose it impulsively without considering future risks.
So, Let’s focus on how to tackle this unexpected foe and make your retirement plan safe and secured.
The Panic Proof Early Retirement Planning:
Save money more and sooner
Cut off dead weights
Create passive income
Shield your finances from the unexpected
Shield your finances from the unexpected
Save 30 – 40% of your income rather than hanging onto the 20% from 50/30/20 rule. Reassess your budget and prioritize your needs, not wants.
Save as if you are going to retire 5 or 10 years earlier than what you had in mind. Cut off non-essential costs that eat away your finances.
Try to clear heavy debts like credit cards and personal loans that can drain your savings quickly.
If you have house loans, car loans or business loans consider refinancing or negotiating better terms that don’t harm your early retirement.
Building a stable passive income can be your golden ticket to a peaceful retirement even if you are forced to retire early.
Invest in dividend stocks, rental property, or build a low effort side-hustle that can earn you a stable income every month, to reduce your dependence on your savings.
Just like how your retirement can be forced onto you early without a warning, you can also face unexpected health issues.
That’s why – having the right insurance in place matters. It can protect your savings from getting drained by such unexpected events and can be a safety net when faced with unexpected misfortunes like these
When your plan goes haywire, it’s better to rely on an expert’s advice rather than make rushed decisions that could harm your financial situation further.
Professional help from a company like @SNC, can provide you with a clear, customized strategy that can help you make a perfect retirement plan, even if your retirement happens 10 years prior to when it was supposed to be.
Prepare for the worst and enjoy the rest:
Early retirement can be a regretful choice for some people and for others it can be a forced choice – either way if the retirement plan is unprepared, they will face severe consequences.
@SNC we can help you prepare a retirement plan that can be foolproof to every worst-case scenario possible.
So that you can lead the peaceful and happy retirement life that you deserve.
Let us help you navigate through tough times. Connect with @SNC now.