Americans' wealth has not entirely recovered from the Great Recession of 2007-2009, but that hasn't stopped many of us from fantasizing about early retirement. American Advisors Group, a business that specializes in reverse mortgages, revealed in its 2019 poll that 52% of working-age Americans want to retire from their current jobs before turning 65.

Inevitably, some people won't get a say in the matter. Retirement plans are often derailed when unexpected events occur, such as job loss, illness, or family duties. But if you're in the fortunate position of being able to choose when you retire, it's wise to weigh the benefits and drawbacks carefully. You can only have the financial means to retire early if you actually will.

Many Benefits of Retirement Early

1. It Might Benefit Your Health

Everyone may see themselves sleeping in longer, enjoying the outdoors and sunshine more often, and eating more mindfully once they've left the office.

This is not pure conjecture. Taking an early retirement at the age of 60 was shown to have no negative impact on the physical health of British public officials in a 2002 research.

Those at greater employment levels had better mental health, maybe because they were less stressed by their occupations. But, as we'll see in the following section, another research2 has shown that retiring might harm your health.

2. You'll Travel More

You'll travel far, far away! Maybe you could go once you are no longer restricted to the cliched "two weeks off" yearly. More years will pass before age-related health problems make it difficult to get around if you retire early.

3. Start A New Career

Start that career change or company venture sooner rather than later. With more years ahead of you, you'll appeal more to potential employers. More time is available to pursue your dream of being your boss. Launching a firm at age 60, for instance, may provide cerebral stimulation and keep you out of trouble for the next two decades.

Some Cons of Early Retirement

Health Risks

Retirement is associated with worsening mental and physical health and an increase in cardiovascular disease and stroke, according to research published in 2008 by the National Bureau of Economic Research.

That's a valid reason to postpone retirement, but it doesn't mean issues won't arise. Physically active and socially engaged seniors were shown to have a lower risk of adverse outcomes in the survey.

Lower Social Security benefits

Social Security payments are reduced if you begin receiving them earlier. If you were born in 1960 or later and begin receiving benefits at the earliest age of eligibility (62), your monthly payout will be reduced by 30% compared to if you wait until your "full retirement age". Delaying retirement by one year, from age 67 to 70, can increase your monthly payout by 8%. There is no longer an incentive to postpone after age 70.

Retirement Funds Must Endure Longer

If you retire at 62 and live to be 90, you will need your IRAs and other resources to last for 28 years. Nevertheless, if you retire at 70 and live another 70 years, you only need your funds to endure for 20 years. Your retirement savings in a 401(k) or another plan will grow at a faster rate if you work for a longer period.

To get a rough idea of how much money you'll have in retirement, multiply your anticipated withdrawal from investment portfolios to supplement Social Security and other sources by 25. With that sum in your joint accounts, you may officially put pen to paper. If you're on the verge, reconsider.

The Middle Ground

There are methods to have the best of both worlds if you're worried about the repercussions of retiring too soon while also not wanting to put off enjoying retirement for too long. In a so-called "phased retirement," for instance, you and your employer agree to a reduced work schedule, and you get to live like a retiree on your days off.

Also, try spending part of the week working from home to understand how solitude, a flexible schedule, and not leaving the house/apartment affect you. Please take advantage of all those vacation days at once and use them to go to the exotic locations you've always wanted to see.

The Conclusion

Retiring is a complex decision that can be reduced to simple calculations. Your physical condition, the demands of your family, and your unique personality will all play a role. An essential consideration is whether you have a concrete strategy for your retirement years. An ancient adage advises that you should retire not just from but to something.