While there are certainly exceptions, who wouldn’t want to retire early? Instead of being a part of the 9-to-5 grind, you could spend more with family, friends, or leisure activities that you haven’t had time for. Or, maybe you could finally travel or pursue a money-making side hustle.
Sounds good, right?
Well, unless you have more than enough money in the bank or multiple income sources, there are a lot of financial risks involved with early retirement. In fact, early retirement may even bankrupt your dreams.
Retirement will Likely Last Longer Than you Think
In spite of your desire to walk away from work, your new life away from work will bring new challenges. For example, one in seven people age 65 right now will live to be 95, while one in three people will live to be 90, according to the Social Security Administration. In an era when life expectancies are rising so rapidly, it is likely you will outlive your savings even if you only save enough to live through the “average” retirement….