For some, the thought of being free of the responsibilities of maintaining a career is something that's looked forward to fondly. Early retirement can give an individual the time to pursue personal goals rather than staying focused on someone else's tasks for forty or more hours a week. But what's the best age for early retirement? It varies from person to person, but the deciding factor in all cases will be whether or not you can support yourself for the rest of your life, and several things factor into the decision to take retirement at an early age.
Pension
Make sure that your pension has accrued enough funds for you to have a comfortable monthly payment for the rest of your life. Remember that because you'd be at an age for early retirement, you'll be getting less than you would if you had waited. Things such as using your IRA to supplement the income can help, but keep in mind that you have to be over 59 years of age to take money from your IRA without being heavily taxed. But the main benefit to payment from pension is that it's steady, predictable income, and unless you have a large amount of money already saved, you will want to make sure you have pension benefits to back you up.
Social Security
Social Security payments will also end up being a good source of steady income once you've retired, but keep in mind that these benefits don't kick in until you're 62, and then the benefits are reduced. Of course, if you wait that long to retire, you're barely counting as having an early retirement age! If you retire much earlier than this, though, be careful. Social security benefits are based off the average of your best yearly salary for 35 of your working years. If you're retiring after only 20 years of being in the working world, then expect small social security benefits when you hit the age to receive them.
Willing to Work?
Sure, it seems ironic to think about working after you've retired, but plenty of people who are of early retirement age but not ready to fully leave the working world take part-time jobs. The benefits to this are not only extra income, whether it's for play or to supplement early retirement benefits, but a person can concentrate on doing jobs that they want to do, often with reduced hours, and not have to worry about layoffs or advancing in a career. And for some, it keeps them from becoming too lazy in an early retirement. But whether you work or play golf instead, taking a look at where your sources of income will be from will help you to determine your ideal early retirement age.
