Some people are able to retire earlier than others. While many folks have dreams of early retirement, it may not always be best for their situation. If you’re nearing retirement, you may have some questions and concerns, and the Davidson Law Group is here to provide guidance. Today, our elder law attorneys share some things to consider as you think about retiring early.
Pro of Retiring Early: Freedom
If you’ve achieved a successful career and saved enough money to retire comfortably, you can experience immense freedom by retiring early. You can set your own schedule every day — wake up whenever you want, travel wherever you want, and avoid long meetings at work. Reaching this level of freedom would be a dream come true for most breadwinners.
Con of Retiring Early: Are You Eligible for Medicare?
On the other hand, early retirement can still leave you with unanswered questions. What is your plan for long-term healthcare? What about nursing home expenses? For example, it’s important to consider your eligibility for medical insurance. Most individuals aren’t eligible for Medicare until they turn 65. Even if you’re a healthy person, retiring early can present risks.
Davidson Law Group Quick Tip: Having medical insurance may not be sufficient to cover the rising costs of long-term healthcare. Whether you can or cannot obtain medical insurance, our elder law attorneys can help you protect your assets throughout the duration of your care. Contact us to learn more about proactive elder law planning.
What About Potential Retirement Income?
There are also many sources for retirement income, which may include one or more of the following:
- Social Security
- Part-time work
- Home Equity
However, Social Security has age restrictions. Many 401(k) plans and individual retirement accounts are unavailable (without penalty) under age 59 ½.
Related Post: Estate Planning as You Begin Retirement
What Else to Consider
You may choose to receive social security benefits early (age 62), at full retirement age (varies between 66 and 67), or after full retirement age (age 70). To help determine whether early retirement is your best options, consider the following conditions:
- Your health – If you’re in poor health, there’s no need to delay your retirement benefits
- Your marital status
- Your break-even point
- What you plan to do with the money
- Whether you have dependents
The Davidson Law Group Can Help
If you’re concerned about retirement and long-term healthcare costs, the Davidson Law Group is here to help. Our elder law attorneys are ready to begin proactive planning so you can protect your family. Contact our offices in Fort Worth, Allen, or Tyler for a free consultation.