Planning for early retirement

K. ARAVIND

Early retirement is not uncommon these days. Most people are motivated by the freedom they would get from the stress of work to go in for early retirement. But it is only possible for those who are financially independent.

There are many people who want to quit their job before they reach the age of 50 years or 60 years. Many factors prevent them from doing so.

Some may be sceptical whether they have the financial means to do so. In the event of any emergency, it is doubtful whether the existing assets will suffice. The loss of every month’s wages can be difficult for most people to cope with.

The question of what to do after retirement confuses many. It is not easy to sit idle for eight to ten hours every day. The key question is what to do during these times.

Retirement can lead to an ‘identity crisis’. While working, he or she will have an ‘identity’ in the community related to the area in which he or she has developed. Many worry that it will disappear with retirement.

Social ties after retirement are not the same as before. Relationships in the workplace can be lost. This can reflect even in friendships. Many people may feel uncomfortable with any magnetism after retirement. Only those who survive such obstacles can make early worming more enjoyable. The first thing is to stop comparing with others. Working eight to ten hours a day may be a joy for others. If living in freedom is your passion then go ahead with the decision.

If you have planned your investments well, the fear of losing your monthly income can be avoided. You would not be frustrated if you can meet your monthly necessities with proper planning of pension. You investment is not just lying around; you are also reaping benefit from it.

One should plan ahead at least two years before retirement. Wealth needs to be assessed to see if it is adequate for monthly expenses after retirement. It is up to you to decide how much money you will need in future to maintain your current lifestyle. Plan your life after retirement.