03 Mar 2020
We would all like to retire early and enjoy ourselves while we still are healthy enough to do it e.g. take those trips we always wanted to, spend more time with our family or focusing on our hobbies.
Reality tells us that it is not always in reach. If you have amassed enough in your portfolio to live comfortably, then buy all means retire early. But for most, early retirement is not an option. With the cost of living spiralling, we just don’t have enough saved up.
Consider these facts
• To retire early you need to have enough funds to last you through your longer retirement. You might have to reduce your income draw down to make this viable.
• You might have to move to a lower cost country e.g. Thailand, Panama or Spain to make your money last longer.
• Consider your medical fees. In certain countries, you may not qualify for free medical yet and would have to pay your own medical bills.
• As you get older, your medical needs increase and this leads to more expenses. Have you considered this?
• Is your home paid off or are you planning on using part of your pension to pay it off? – Less money in your pension means less interest you can withdraw without shrinking your investment.
• What would you be doing with all this free time? – Do you have hobbies or a part time job to keep you busy? Many who retire early feel like they still have so much to contribute to society. Getting a part time job or volunteering would be ideal.
• Retiring early means you get a smaller pension - You may have to get a part time job to supplement your income until your state pension pays out at the required age.
You need to do extensive research into early retirement and the cost of living of where you will be retiring to, and chat to your deVere Acuma adviser to do a stock take of what your portfolio looks like.
This way you can be 100% sure of the consequences of early retirement and if it is a viable option for you. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.