Reasons for Not Retiring Too Early
Some people want to work for as long as they possibly can, while others want to retire as soon as possible. If you really want to enjoy your retirement, you need to wait until you are financially secure. Retiring too early can be a mistake as you may not have enough money in your Self Managed Super Fund to be financially secure.
Here are five reasons why you should not retire too early:
1. Working Is Good For Your Health – Physically And Mentally
Work gives you a purpose in life; those with too much time on their hands quickly find that their physical health deteriorates. According to research published in the British Medical Journal in 2010, people who retire at 55 are twice as likely to die within the decade when compare to workers who retired at 65.
Plus, staying mentally active is crucial – especially for senior citizens. Keeping your mind active with work may also help prevent mental illnesses such as Alzheimer’s Disease.
2. You Can Save More Money In Your SMSF
You’ll hurt yourself in two ways if you retire early: One, you will be living off of your retirement money earlier, and; two, you will have fewer years to put money away for your retirement in your SMSF. By sticking it out for 5 years or more you can ensure that you golden years will be financially secure.
3. You Can Help The Economy By Working More
There are people out there who will give anything for your job. If you’re in good enough health to continue working, why would you want to quit?
4. If You Retire Too Early, Your Social Life Might Suffer
For many individuals, their social lives revolve around work. You will no longer be invited to office parties and there will be no more need for attending networking events. There will be no more lunch breaks or coffee breaks with co-workers.
5. You Might End Up Regretting It
If you decide to go back to work in the future, you’ll probably have trouble finding employment again. Therefore, consider your decision to retire very carefully.
Retiring early can be a wonderful thing, but it also has its downside. Carefully consider the aforementioned five points before making any final decision.
This information is intended to provide background information only and does not purport to make any recommendation upon which you may reasonably rely without taking specific advice. In particular it should not be considered financial product advice for the purposes of the Corporations Act 2001.