Some Things To Consider If You Are Thinking About Taking Early Retirement

Source

I Was Forced Into Early Retirement At Age 55

Some people have no choice in their retirement plans. Even a lifelong career can come tumbling down around you as it did in my case.


I chose Medical Technology as my profession. No one in my family was ever in the medical profession, but I had a friend who was influential in my decision. I've never regretted that decision.


After getting a degree, I worked for 30 years in this profession. I worked the last 18 years in our local hospital, and I was a loyal and hardworking employee. The hospital was facing budget cutbacks, and I was one of the employees who was asked to leave full time employment. I was devastated!


I had not planned to retire from work at the age of 55! I thought I would have at least another 15 years of working full time.

The Subject Of Early Retirement Has Recently Come Up In My Family


I have a daughter who entered the work world after getting her barber's license at the age of 18. She has been working full time and now, at the age of 50 she finds she wants to quit work. After years of working on her feet all day, she is emotionally tired, and also is having neck and back problems. She asked me for advice on what I think she needs to do.


She is single, has one grown child, a house that is mortgage free, and has no car payment.

She no longer enjoys cutting hair all day. It has become a job that she dreads. Most of her clients are older retired men and they love to share their ailments. She is weary of hearing them. Her clients love to talk politics, and they try to involve her. She tries very hard to avoid these conversations.


Source

My Daughter Must Make A Post-Retirement Budget

I WILL TRY TO GIVE MY DAUGHTER SOME GOOD ADVICE


  1. Make a post-retirement budget. Figure what your cash flow will be like when you are no longer producing income. I know from my own experience your expenses may drop a little in retirement, but you will see they don't drop as much as you think they will. Determine how much money you will need each month to live comfortably.

  2. Early retirement will prevent you from collecting social security benefits. This will start at age 62 or 65 whichever one you choose.

  3. Medicare does not start until age 65. You must have good health insurance. Since you were self employed, you do not have employee health coverage. Health insurance costs are rising faster than inflation. Try to find coverage for dental and vision care.

  4. You should have insurance to cover long term care. I failed miserably by not taking care of those plans, and now I am too old to afford the high premium.

  5. Don't forget about inflation! I would figure at least a rise of five percent a year.

  6. Pay off credit cards and any other debt you have. My daughter is lucky not to have any student loans, a car loan or a mortgage on her house.

  7. Stop making any unnecessary purchases.

  8. Stop buying lunches out; take your lunch to work.

  9. Learn to live frugally.

Other Things To Be Considered Before Taking An Early Retirement


How can she produce income after she retires at age 50? There will be a big gap between now and age 62 when Social Security starts.

  1. She could: Sell her barber shop.

  2. Sell her mortgage free home, get a reverse mortgage, or move into a small apartment and rent out her house.

    She could consider renting out a couple of rooms in her house.

  3. She could pull out the equity in her house, but then she would have another debt!

  4. Move in with her daughter. She would say this is NOT an option!

  5. Work part time in another barber shop to produce some income.

  6. Look into other professions that don't require standing on her feet all day. She would have to study for another profession.

    This would require time and money to learn.

  7. She could hire more barbers and keep the shop. She would still have the stress of ownership, and unless she finds a good manager, she would still have to oversee the day to day business.

If she finds she could live within this six month trial budget, I think she can now consider quitting work.

Spend Less, Save More For Early Retirement

Source

Some Disadvantages Of Early Retirement

I WILL REMIND HER OF THE FOLLOWING DISADVANTAGES OF QUITTING WORK NOW:

She will miss the day to day contact with clients. She doesn't think she will, but I know how much I have missed my friends from work. I know how soon those friends forgot all about me. She will be separated from co-workers that have been a big part of her life. She may find herself very lonesome.

She should look for new hobbies to keep herself busy.

  1. She will need to make new friends. This will be challenging for her, but also rewarding. She will have a chance to meet like-minded people she would enjoy talking to. She can look into volunteer work available in her area.

    She just may find herself discussing what truly interests and excites her (instead of the usual politics).

  2. She may find the life she wanted is actually a boring life.

  3. I do think since we people are sociable animals, having a job is a good thing for us, mentally and physically.

  4. She will probably miss those lunches out, and being able to buy clothes whenever she likes.

  5. She will miss the occasional movie she can now afford, but will not be able to afford if she quits work now.

    She may have to be content staying at home and watching movies on Netflix.

Dreaming Of Retiring To Live On An Island?

Source

There Are Many Pros and Cons About Taking Early Retirement

There are many pros and cons about early retirement. My daughter will just have to weigh her options carefully.

I hope I have given my daughter some good advice on taking early retirement. I do not want her to make some of the mistakes I have made.

If I had my life to live over, I would have planned better for retirement.

There are many free programs to be found on the internet to calculate you own ability to enjoy an early retirement.

This is not a decision to take lightly. If she decides later on she made a bad decision, she may have to go back to work!

I always say: Nothing ventured; nothing gained.



Are you saving now for an early retirement?

See results without voting

More by this Author


57 comments

billybuc profile image

billybuc 2 years ago from Olympia, WA

I retired at sixty-two. Since I had done no financial planning, I just started a new career...as a writer. You have given excellent advice here for those who have more foresight than I had. :)


WillStarr profile image

WillStarr 2 years ago from Phoenix, Arizona

It has been my experience that when one door closes, a dozen new ones open, so your daughter has a lot of options. With her long experience, she might consider teaching. Barbers also develop great people skills over the years, so there's another avenue.

We will sell our big house and buy a much smaller one in a less expensive location. We are also taking inventory of our 'stuff', and anything we haven't used in the last year will be up for sale. Learning frugal living is actually an adventure, and very rewarding.

Excellent Hub, Mary!


mary615 profile image

mary615 2 years ago from Florida Author

Hi Bill, You have done very well for yourself as a writer! She isn't sure what she wants to do, she is just "burned out" on barbering, and like I said her health is getting bad, too.

You know, I hate giving advice to anyone, especially my own child.

Thanks for reading and adding your comment, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi, Will, I don't know if she has considered teaching in a barber school. Barbering is a dying occupation. There are very few barber schools left, but that is definitely a good suggestion.

Yes, she will certainly have some adjustment to her life if she does quit work.

Thanks so much for the nice compliment on my Hub, Mary


mpropp profile image

mpropp 2 years ago from Minnesota

I've got several more years to go, but I also have been considering an early retirement. This hub was very helpful in illustrating the pros and cons. It gives me lots to think about. Thanks!


Sunshine625 profile image

Sunshine625 2 years ago from Orlando, FL

You offered great suggestions and advice! I wish your daughter good luck with her decision and/or next chapter. Being burned out and having to do something that you don't have your heart in, is tough. Good thing she has you for support :)


mary615 profile image

mary615 2 years ago from Florida Author

Hi mpropp It would be nice to take an early retirement if you think you are ready for that! Yes, it is a lot to to think about. I think a lot of people would like to quit work if that were an option.

Thanks so much for reading and commenting, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi Sunshine625 (Linda). You know it's hard to give your children advice even when they ask for it. I do feel bad for her and hope her decision will be a wise one.

Thanks for reading, and for the nice comment, Mary


Nell Rose profile image

Nell Rose 2 years ago from England

Hi mary, this is great advice, she can of course find temping jobs too, maybe in a shop or even an office. If she doesn't really need to earn much more maybe do charity work in a shop a couple of days a week. There are lots of options, and if she really does hate that job now I don't blame her for wanting to get out now, nell


mary615 profile image

mary615 2 years ago from Florida Author

Hi Nell, well after all these years she is just "burned out". Her neck and shoulders bother her a lot from cutting hair for so long. Yes, she does have options; only she can decide what is best for her.

Thanks for reading and adding your comment, Mary


FlourishAnyway profile image

FlourishAnyway 2 years ago from USA

It's a tough call, and I wish your daughter the best in her decision. You emphasized excellent points on both sides of the fence. She is still young.


torrilynn profile image

torrilynn 2 years ago

I don't know much about retirement but I remember how my dad said he had to keep working until he can get his retirement money or 401k. Im just now learning about 401k and life insurance and what not. thanks for the pros and cons of retiring early.


Vellur profile image

Vellur 2 years ago from Dubai

Great advice, we definitely have to consider about how we will manage the expenses after retirement and the inflation factor and medical coverage. Great hub, thanks for sharing and wishing your daughter all the best in whatever she does, she has a great mom.


Peggy W profile image

Peggy W 2 years ago from Houston, Texas

Hi Mary,

That is a tough decision to make because of unknown factors that might crop up. It is easy to plan a budget for the day to day and annual expenses but it is always those unexpected things which can disrupt the best laid plans. You have given her a lot to think about and with which to weigh her options. Hopefully she has loads of money set aside and invested and already has and can maintain health insurance and long term care. Wishing her well! This advice of yours can also help others who are considering retirement. Pinning this to my Useful Tips and Ideas board and will Google+ and share it as well.


PegCole17 profile image

PegCole17 2 years ago from Dallas, Texas

Hi Mary, You've presented the pros and cons of your daughter's decision and now she'll have to make that important choice. I was in the cosmetology business for a number of years until I reinvented myself in a new profession (or two). Finding ourselves seems to be a goal when we reach that magic age of 50 or even earlier. We begin to question our day to day activities and wonder if we've done what it is that we really wanted to do with our lives. It's not too late for your daughter to take another path if she so desires. Meanwhile, you've given her a lot to think about.


bravewarrior profile image

bravewarrior 2 years ago from Central Florida

Mary, your daughter is fortunate to be mortgage free. I "retired" when I was 55 because I got tired of the corporate world. I now freelance and have been struggling, although things are starting to look up.

I would advise your daughter to think of the dreams she had for herself before she became a mother. What would she have done if she didn't have to put her dreams on a shelf to provide for her family? We all have to do it, but there comes a time when we can pursue those dreams and make them reality.

Ask her this: "If you had your druthers, what would you do with your life?" or "What are you passionate about?" Now is the time for her to live - or at least strive for - her dreams.

I agree with the loneliness part. I miss my co-workers, too. But I love making my own schedule and not having to deal with crap that grates me the wrong way.

It's her time now. She needs to reflect, ask herself some questions and then just go for it!


suziecat7 profile image

suziecat7 2 years ago from Asheville, NC

Excellent Hub. I plan to semi-retire in October at the age of 60. I will work part time only. I am looking forward to it as I can finally finish my novel and do some more writing. Very helpful Hub and finances are certainly an issue that has to be dealt with.


Hady Chahine profile image

Hady Chahine 2 years ago from Manhattan Beach

Having constructive hobbies and plenty of cash flow is definitely a concern for any retiree, especially those choosing early retirement. If I had to choose between these two factors, money is definitely the priority. Personally I have known many retirees and those who were cash-strapped were, in my opinion, less happy because (generally speaking) they had fewer options to enjoy their time. Meaning, hobbies normally cost money so when dollars are in short supply possibilities to enjoy retirement are narrowed considerably.


grand old lady profile image

grand old lady 2 years ago from Philippines

This is a great article. Too often, people don't think about retirement and plan for it. Your article can help many people. By the way, let me add that a lot of foreigners retire in the Philippines and in South America, because their dollar has a lot more spending power in these countries. However, my sisters, who are Americans, don't want to do that because all their children and grandchildren are in the States. So planning your retirement in the States is a very good idea, and many people will surely be helped by your article.


mary615 profile image

mary615 2 years ago from Florida Author

Hi, FlourishAnyway Yes, it will be a tough call for her. She is lucky that she is still young enough that she can afford to make a mistake now rather than later.

It is so hard to advise someone else on what they should do.

Thanks for reading and commenting, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi Peggy, thanks so much for adding your comments to this discussion about my daughter's early retirement. You are so right; it is hard to budget even on a day to day basis.

No, sadly, she has not saved a lot of money for her retirement. I hope I've given her and others some things to think about.

Thanks so much for the shares and the Pin, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi PegCole, that is so interesting that you were in cosmetology which is hard on the body just like barbering. I sold health insurance, and that is one occupation we could not insure because of the health risks.

I think she will have to "reinvent" herself just like you did. Thankfully, she is young enough to do that.

Thanks so much for your input, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi, bravewarrior, yes, she is very fortunate to own her home free and clear. That is one big expense she won't have if she quits working. You make an excellent point by asking the question: what would you like to do at this point in your life, and peruse your dream.

At least she is young enough to try something new if she needs to do that. Thanks for your well thoughtout comment, I appreciate that, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi, torrilynn You didn't mention how old you are now, but it is smart of you to begin to think about retirement. 401 plans are wonderful to accumulate money toward retirement; if you can contribute of one, that is great.

Start saving now so you can retire in financial comfort. Most of us don't do that.

Thanks for reading, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi Velllur yes, most of us don't plan far enough ahead for our retirement. The times flies by so quickly! I certainly was not prepared to retire. I was hoping to at least put in my required 20 years before I could retire on the hospital pension.

It's never too early to start saving toward our retirement.

Thanks for your good wishes for my daughter and for the lovely compliment, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi, Hady Chahine You make such a good point: if people haven't saved enough money, they can't enjoy retirement or hobbies either. I have friends who are now retired but can't afford a meal out or any hobby because they are trying to live on just Social Security.

Thanks so much for adding your thoughts, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi there, grand old lady. You are so right: most of us don't plan well for retirement. We find ourselves totally unprepared. My daughter has actually thought of leaving the US for other parts of the world where retirement would not be so expensive, but like your sisters, she has family she would not want to leave.

I have a dear friend who just retired to Costa Rica, but she has ample savings.

I do hope you are right about my article being helpful to others, thank you......Mary


travmaj profile image

travmaj 2 years ago from australia

Hi Mary, much to think about in your excellent hub. It's a difficult decision for your daughter and for you to advise. My friend has a similar problem with her daughter intending to resign her job, not for retirement but for pastures new with no guarantee of work. Of course it 'sounds good' but is fraught with 'what ifs' I guess with our daughters we can only do what you are doing, give our advice, sit back and let them make their own decisions. We never stop being concerned though do we? Best wishes...


mary615 profile image

mary615 2 years ago from Florida Author

Good Morning, travmaj I always hesitate when my children ask for my advice. I tell them what I think, and as you say, it's up to them to make the right decision.

I am concerned for this daughter's health, though. Years of cutting hair has really messed up her neck and shoulders; probably due to poor posture while cutting hair.

Her problem is she hasn't saved enough money yet to quit working, or at least that's my opinion.

No, we never stop being concerned for our children; just one of the many prices we pay to be a mother!

Thanks for reading and for the thoughtful comment, Mary


AliciaC profile image

AliciaC 2 years ago from British Columbia, Canada

This is a very useful hub, Mary. There is so much to think about when considering an early retirement. I wish your daughter well. It's good that she has you to offer advice.


mary615 profile image

mary615 2 years ago from Florida Author

Hi, AliciaC Yes, there is a lot to think about before quitting a job. It is certainly not to be taken lightly. I'm afraid my daughter has not prepared for her early retirement. She just may have to work a little longer.

Thanks for reading and commenting, Mary


Pamela99 profile image

Pamela99 2 years ago from United States

Mary, This is really such an important topic. You don't always have choices if you haven't planned, such as what happened to you. I became very ill and had to go on disability at 54, then my husband had a disabling stroke at 59. We had saved for retirement and we had no debt, except out home. We were able to pay that off with retirement money thank godness.

We have a lot of medical bills, but my health has improved, so the writing comes in handy. You just can't start planning early enough. At least your daughter is young enough to have some choice, or she could even do something entirely different. I wish you both the best.


teaches12345 profile image

teaches12345 2 years ago

When we first retired, it was a difficult transition with both of us being at home during the day. We adjusted over time by using many of the suggestions you list here. I think it is most important to stay active whether it is volunteering, exercise or social interactions. Great read, Mary!


mary615 profile image

mary615 2 years ago from Florida Author

Hi, Pamela99 Sorry you have had some difficulties in your life. You were fortunate in that you had saved for retirement, and had no debt.

I'm happy your health has improved.

Yes, my daughter's age is on her side, but I wish she had saved more money.

Thanks for your good wishes. My best to you and your hubby, Mary


mary615 profile image

mary615 2 years ago from Florida Author

Hi teaches12345. I really believe that if and when my daughter quits working, she will miss her friends and her clients even though she doesn't think so right now.

Yes retirement at any age can certainly be traumatic.

Thanks for the nice compliment, Mary


Eiddwen profile image

Eiddwen 2 years ago from Wales

Very interesting Mary.Voting up ad sharing.

Eddy.


mary615 profile image

mary615 2 years ago from Florida Author

Hi, Eddy. So nice to see you today! Many thanks for reading, the votes and the share.

Yes, my daughter has a big decision to make about early retirement. I hope she makes the right one.

Wonder if you celebrate the 4th of July in Wales?? I dread all the noise!


Faith Reaper profile image

Faith Reaper 2 years ago from southern USA

Wonderful advice here you have share, dear Mary, from your personal insights and experience. I have been thinking about early retirement myself, and now I have much to ponder after reading your useful hub here!

If your daughter is burned-out and already having health issues from standing so long, it may be worth it to her, but there is much to think on before making that decision.

If I did retire early, I certainly would not be bored but have more time to help the needy and we already do not go out to the movies but stream Netlix lol ... I would love to have more time with my grands and doing more gardening, reading and writing. Having fancy clothes is not really high on my priority list, personally.

Voted up +++ and away


mary615 profile image

mary615 2 years ago from Florida Author

I'm afraid my daughter has not saved up enough money to quit working just yet. I've never been bored a day in my life, and I don't think you would be bored either!

If she does take an early retirement, I think it will be necessary for her to work in some other field that wouldn't require so much physical labor.

Thanks so much for reading, and the votes, Mary


ChitrangadaSharan profile image

ChitrangadaSharan 2 years ago from New Delhi, India

Some very practical and useful advice for those who are on the verge of retirement or want an early retirement.

It is the medical expenses which must be planned, as we are not getting any younger. And with age comes lot of health problems.

Excellent hub with very important advice and suggestions! Thanks, voted up and shared on HP!


ARUN KANTI profile image

ARUN KANTI 2 years ago from KOLKATA

Two things should come uppermost in mind before planning to retire early. One is definitely financial planning for the future and other is active engagement after quitting a job. Many people suffer from ennui as they find no way to be actively engaged. I wish your daughter a very active and happy life after retirement.Thank you for sharing your thoughts with us


mary615 profile image

mary615 2 years ago from Florida Author

Hi, ChitrangadaSharan . I am so glad you thought my Hub has practical and useful advice on early retirement. You brought up a good point about health insurance.

Thanks so much for the votes and the share, Mary


mary615 profile image

mary615 2 years ago from Florida Author

HI, ARUN KANTI. You are so right: financial planning is certainly important, and so is staying busy after retirement. I think having interesting hobbies is extrememely important, too

Thanks for taking the time and read and comment, Mary


midget38 profile image

midget38 2 years ago from Singapore

Great advice, Mary. We must all learn to live frugally.....expenses are getting higher!


mary615 profile image

mary615 2 years ago from Florida Author

HI, midget38 Most of us don't look ahead and save enough money to retire comfortably. Like you said, cost of living just keeps on going up!

Thanks for reading and commenting, Mary


DrBillSmithWriter profile image

DrBillSmithWriter 2 years ago from Hollister, MO

Great topic. I just started my real career at 55, having finished my PhD and became a business school University Professor. I worked until 70, loved every minute, built up a modest pension, maxed Social Security. I'm happy. But, as you have said, this is a decision that must be made by every single person, for themselves (and spouse, if applicable).


mary615 profile image

mary615 2 years ago from Florida Author

DrBillSmithWriter So nice to meet you here today! Taking early retirement is a difficult decision for many people. You sound like you were prepared financially; so many people are not. The main thing is that you are happy!

Thanks for reading and commenting, Mary


pstraubie48 profile image

pstraubie48 2 years ago from sunny Florida

Hi Mary I don't think I commented on this. I had to weigh in. I had to retire three years early due to family illness

I had some adjustment financially but all in all, it is wonderful.

Angels are on the way to you today ps


mary615 profile image

mary615 2 years ago from Florida Author

Hi, pstraubie48 Since I wrote this Hub, the daughter has just got her Oregon barbering license. She now lives in Florida and just hates the heat here. She is hoping she will have a new outlook on life after she makes this move. If she is unhappy there, she can always come back to Fl.

I'm glad you are happy in your retirement, even though you were forced into that decision due to family illness.

Thanks so much for reading, commenting, and sending me angels today! Mary


MarleneB profile image

MarleneB 2 years ago from Northern California, USA

At the age of 53, the company I worked for turned out a lot of people in a massive lay-off. I was forced to make a decision to be stressed out trying to find another J-O-B or retire early. I decided to retire early. After much deliberation about this and that and making strategic decisions, I am now a happy retiree. Because I enjoy writing, I write to earn "extra" income. You have given your daughter and your readers excellent advice. Before retiring, I had to think about and consider every single item you mention in your hub.


mary615 profile image

mary615 2 years ago from Florida Author

Hi, MarleneB It is so nice to hear from someone who has actually been through this like yourself. As I said I was forced to leave my job at age 55. It isn't easy especially is you want to continue to work.

There are a lot of things to be considered when trying to decide on early retirement (by choice).

Thanks for reading and commenting. My best to you, Mary


manatita44 profile image

manatita44 23 months ago from london

The credit card thing and unnecessary lunches definitely. Not sure about putting her business in the hands of others, or even tenants in her home. Your Hub reads like she is telling you that she is drained. That she has lost the satisfaction. This being the case, then she may wish to consider selling and getting out.

There are always inner fears, but you survived, right? She will, too. Can she write? A career in writing is not bad. Again, she is not old and if in good physical shape, there are other areas that she can look at.

At home she will get bored, yes, but a period of re-cuperation is good. Friends are transitory anyway, and a new direction or circle of friends might help. Does she like Yoga (physical) or some Salsa or Latin dance? She may make some friends there. Being single may be an asset in a financial, mental and social sense, as well as a having a grown up child.

Let her go for a holiday to clear her head. Much peace.


mary615 profile image

mary615 23 months ago from Florida Author

Hi, manatita44 Yes, my daughter really is "burned out" cutting hair. There are certainly other avenues she could pursue. She plays guitar, and could possibly make some money playing with local bands.

Your suggestion for her to go on a holiday is a good one; in fact she is planning on going to Oregon for the upcoming Summer. She would just keep her barber shop and get a good manager.

Thanks for reading and for your very good comment, Mary


manatita44 profile image

manatita44 23 months ago from london

My pleasure.

The journey of each Soul necessitates ebbs and flows. vicissitudes one might say. Once the tunnel is crossed, then the Light is always waiting. Much peace.


mary615 profile image

mary615 23 months ago from Florida Author

Thanks for adding that to your comment on my Hub, I do believe you are right about that. Have a wonderful day.


poetryman6969 profile image

poetryman6969 23 months ago

Early retirement has passed me by but everyone should still be aware of the subjects you are bringing up as early in their working lives as possible.


mary615 profile image

mary615 23 months ago from Florida Author

Hi, poetryman6969 I'm glad you agree with the points I tried to make on eary retirement. Most working people dream of quitting their job, but how many are really ready??

Thanks for the visit and the comment, Mary

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working