If you’re in your late fifties or early sixties, you’ve probably imagined what an early retirement could look like. There are a variety of benefits that come with retiring early, as well as a few reasonable concerns. Not having a traditional day job can be nerve-wracking for any person, even one who’s achieved a lot of success. This is because retirement and financial independence are not one and the same.
Retirement and financial independence are commonly used interchangeably. However, there are keen differences between the two. Financial independence can be applicable to any person who has earned enough to sustain their livelihoods without traditional work, regardless of their age. Retirement is, mostly, used to describe people in their later life – usually over 60 years of age – who are financially independent and no longer working.
Distinctions aside, the opportunity for early retirement is becoming more common for people of all ages in our modern world. Digital, technological, market and communication advancements have made earning passive and additional income more accessible than ever before. Both, early retirement and financial independence are more possible today than ever before.
Early Retirement and Financial Independence
Early retirement, in particular, refers to people who’ve become financially independent before the usual retirement age – 60, in the case of South Africa. Many of these early retirees have become squeamish at the use of the term ‘retirement’, but the reality’s that if you’re financially prepared to end your career, you can retire early! Achieving financial independence and leaving the workforce means that we’ve got more time to enjoy our accumulated wealth and spend more time with our friends and family.
The Benefits of Early Retirement
- Running errands and making plans is easier
With an early retirement, your days are freed up to do what you need to, when you want to. Early retirees can run their errands or do a weekly shop at times that are most convenient to them. Make plans with friends and family more easily, avoid the worst of weekday traffic and enjoy less busy parks, shopping centres, gyms or movie theatres. - Try out free and discounted activities
Having all this extra free time allows early retirees to take advantage of weekday or monthly specials at local museums, movie theatres, travel agencies and restaurants. Don’t miss the 50% discount at your favourite restaurants and shops, reduced return flights or free-for-everyone days at the best museum in town. - Enjoy a better social life
Most professionals work five days a week and from 8am to 5pm. It might not be this schedule exactly, but having the opportunity to develop a thriving social life can be difficult for those working a full-time job. Early retirement gives those who dedicated themselves to their careers for decades a chance to expand their social circle or enjoy new and different night-life and activities. - Focus on your friends
In the digital age, it’s tempting to maintain some relationships online or over phone calls. The reality’s that by retiring early, you can focus your time and energy on your offline relationships and connections. Spend more time with your favourite people in the (real) world and when it’s convenient. - Spend more quality time with your family
One of the best parts about retiring – one of many – is that you’ve got more time to spend with your loved ones. You’ve got the freedom, space and flexibility to spend more quality time with your family or speak to ones overseas. Perhaps you could even visit them more often. Early retirees can focus on their spouses, kids, grand-kids and extended families without the hindrance of a busy work life. - Get in better shape
Without having to spend your whole day at the office, you can take better care of your health. Early retirees have the opportunity to improve their nutrition and exercise more frequently. After years of ordering takeaways, barely sleeping and stretching at your desk, retirees can focus on eating better, sleeping better and staying in shape. Not to mention, these are all so important for maintaining our mental health. - No fear of getting fired
Without having a traditional job, you no longer have to worry about job security in this hyper competitive labour market. Retiring early, because you’re financially independent, gives you the freedom to live your life the way you want to. You’ll never have to adapt your lifestyle to appease your employer – ever again! - Finding new purpose in life
Many in the working population mistake their life’s purpose for their professional purpose. As the saying goes, work is ‘what you do, not who you are’. Retirement, finally gives dedicated professionals the opportunity to prioritise other areas of interest and forgotten passions. The additional time and energy those early retirees have for new activities and interests can help them find new purpose in life.
Possible Concerns About Early Retirement
The most common concerns about early retirement are whether or not you’ve got the financial and social resources to maintain your current lifestyle without work, and what to do with all that free time. This takes planning and experience. You need to plan out your yearly budget and determine what you’ll need. This is usually a smaller number than you think, and most early retirees are well-prepared to live a happy life.
As far as the free time, potential laziness and wasted days that many considering early retirement are concerned about: trust yourself. You need to use this time to find new hobbies, try new activities, travel the world more and spend less time on social media and in your emails. Perhaps you’re a master pianist in waiting or an author looking for the right story, maybe you’re a capable endurance athlete or a gifted chef. You won’t know until you try.
Early Retirement Is Worth It
Whether you’re volunteering for a charity organisation, planning to visit loved ones in other countries or training to climb Kilimanjaro, early retirement and financial independence means that you have the time and resources to commit to them. Find new purpose, explore new places and try new things, the possibilities of an early retirement lifestyle are endless.
Deciding where you are going to live is a critical investment in your post-retirement lifestyle. If you are a retiree and considering where to call home on this exciting new chapter of your life – consider joining one of Manor Retirement’s beautiful and bustling communities.
