After years spent planning and dreaming about your retirement, many soon-to-be retirees get a little antsy with the wait. If you're wishing you could retire early, you're in good company: A recent poll discovered that some Americans are so ready to retire that they would be willing to take the following actions to make it happen:
If you've been a diligent saver up until this point, the above scenarios might actually work for you. But it's important not to jump the gun before considering all possibilities. Like most things in life, planning and careful consideration go a long way toward making sure you don't regret an impulsive action.
If you're part of that 38 percent who said they would sell their homes and rent, investigate the condition of the real estate market in your area. The housing crisis hit some geographical areas harder than others, but prices may not have fully rebounded in your area. If selling now could mean forfeiting thousands of dollars in profit, it might be smart to wait just a few more years. Renting can come along with its own problems, so it's important to carefully analyze the pros and cons with that situation as well.
Moving to a part of the country with a lower cost of living is a feasible option for many people, especially if you currently live in an area with a very high cost of living. But moving would still mean selling your home, so you would still have to deal with current real estate market conditions. There are also considerable costs associated with moving to another state, and you may end up spending more money traveling to visit the friends and family who live near you now. These are all expenses to consider when planning your budget.
The 34 percent of survey respondents who said they would move overseas are considering a popular option these. Many retirees enjoy the lower cost of living in other countries. Once again, remember to factor in your moving expenses and travel to visit family back home. There are also some special tax regulations associated with retiring abroad, so consult carefully with your tax professional.
If you do decide to retire earlier than expected, remember that you will need to bridge the gap between your employer-sponsored health insurance and Medicare eligibility at age 65. Check with your company's human resources department about your options for extended healthcare coverage.
This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
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