By Stanley Emerson
For many reasons, more and more people are opting to retire at
an early age. The growing trend for the retirement is based on
the fact that people are enticed to retire early than continue
working and wait until they reach their retirement age of 65.
In fact, most of the surveys conducted in the United States
asserted that 60% of the respondents would love to retire at
In reality, there are many benefits that people can derive
they retire early. However, there are also many consequences
that result from early retirement. What they do not know is
that early retirement has the potential of bringing more
problems than reaping in benefits and advantages.
Here is a list of some of the reasons why retiring early can
a pretty risky activity.
1. Not in accordance with the regulations of Social Security
When people will retire at an early age, there is a great
possibility that they cannot immediately obtain their Social
Security benefits. This is because according to the rules and
regulations of Social Security, anyone who is born after 1938
will have to wait longer than their retirement age of 65
they can get their benefits.
Hence, early retirement may only contribute to a negative
upshot if the older people’s finances where not managed
properly and the only thing they expect to help them are the
Social Security benefits they can get.
2. If people who took early retirement get sick, they cannot
acquire some Medicare benefits.
This is because the age when people can get their Medicare
benefits is when they already turn 65. Hence, if they are
hospitalized and they have already filed for their early
retirement, they have to obtain the necessary amount of money
in order to cover the expenses in the hospital without
3. Penalty charges apply to those who retired early and had
withdrawn their IRAs early.
For people who would like to retire at an early age and wish
obtain their IRAs, they have to face a hefty 10% penalty
Moreover, experts contend that the nest egg of people who wish
to retire early is only 80% of what they should be getting
they retire at the age of 65.
The bottom line is that early retirement is, indeed, a
choice and preference of an individual but one must consider
factors that may affect their life in the end.
About The Author: Henry Clark can show you how to make the
of your retirement years. Visit his website and learn more