10 Things No One Tells You About Early Retirement

Even if you love your job, there are times when you'd rather be alphabetizing the spice shelf than riding a packed train alongside hundreds of sniffling fellow commuters. And as you sway in the car next to a man who has biked four hours to the station, you might be thinking about early retirement.


Unfortunately, early retirement isn't for everyone. In fact, it isn't for most people. Just 11 percent of today's workers plan to retire before age 60, according to an Employee Benefit Research Institute (EBRI) survey. For many of those who do take the plunge, the reality of early retirement can turn out to be far different than the fantasy. Here are a few things to consider before you decide to retire early.


1. Health care is expensive

Medicare, the federal program that provides health coverage for more than 61 million older Americans, doesn't start until age 65. Until then, you'll need an alternative — and it won't come cheap.


"Private health insurance before Medicare kicks in costs an arm and a leg,” says Brian Schmehil, director of wealth management for the Mather Group in Chicago. Current law says your insurance costs can't be more than 8.3 percent of your household income. For a person with a household income of $50,000, for example, a mid-level silver plan would be $346 a month, or $4,150 per year.


https://www.aarp.org/retirement/planning-for-retirement/info-2021/pre-early-retirement-reality-check.html

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