Have you ever wondered why some people hold off on retiring? Well, that’s something I often see in my line of work. I see people continue to work well into their 60s and 70s out of fear of the unknown that retirement has. Today, I’m diving into five reasons to retire as you can.

As I will be talking about some financial planning topics like pensions and retirement, I have added some risk warnings which can also be found in the description below.

But I want to make clear that this article is for information purposes only and is not financial advice.

Before making any financial decisions or taking action, I strongly encourage you to seek professional guidance from a qualified financial planner who will advise you on your own personal circumstances. Please see the Risk Warnings at the end of this article.

REASON #1: TIME

Many of us have dedicated decades to our careers. While our work might bring us satisfaction, the hard truth is that while we can always find ways to boost our income, time operates differently – it’s a precious, non-renewable resource we can’t simply get more of.

Sooner or later, we’re faced with the task of looking at our retirement savings and asking ourselves ‘should I retire now?’

On one hand, we can decide to continue working for a couple more years – this may help our retirement funds to grow in value even further. On the other, there’s a point where we decide, ‘This is enough.’

Here’s another way to think about things: break down your life into seasons. Check out the below chart that maps out life from 65 to 100 years old. It slices those years into Winter, Spring, Summer, and Autumn. What some of us do is plan our lives around the seasons – well that’s what I tend to do.

When January comes around, I’m already dreaming up my summer holiday, deciding on which European destination to go to. And as the months pass, my thoughts shift to the excitement of Christmas and all the festivities.

Of course, we are not immortal. According to the Office of National Statistics, the average retirement age is 65, and if you’re a 65-year-old male, you’re looking at an average life expectancy of 85. I do understand there’s no one-size-fits-all rule here. There is always a chance that we may live well beyond that. The real point of this chart? It’s a wake-up call, reminding us that time’s not as endless as we might think. You could be down to just 16 more summers or Christmases with the family.

It’s essential to acknowledge what we have and take the time to enjoy it, to care for ourselves, and fulfil the promises we made to our families, like going on that long-awaited trip.

The last thing we want is to be prevented from going after our dreams due to an unexpected health event like a stroke or heart attack. The reality is that we don’t know how much time we have, but we do know that it is limited.

So, it’s important to carefully consider the advantages of retiring a bit early. It allows us to embrace the precious time we have and make the most of our lives while we still can.

REASON #2: RELATIONSHIPS & FAMILY IN RETIREMENT

As I’ve already mentioned, time is an incredibly precious resource – once it’s gone, it’s gone.

To retire early can provide you with the opportunity to allocate more time towards nurturing relationships with your family and close friends.

If you have aging parents or adult children who are embarking on their own family journeys, now is the moment to contemplate how you can offer your support.

This support extends beyond typical financial support. Being present for your children and assisting with your grandchildren’s upbringing can be deeply gratifying and significant.

Your presence and support can have a huge impact on their lives that goes beyond financial contributions.

I came across a fascinating chart that highlights the actual time we spend with our kids (SEE GRAPH BELOW). The key takeaway is that the time we share with our children is surprisingly brief the older we get.

So, how could early retirement positively affect you? It could free up your schedule, enabling you to be present for every available moment with your children and grandchildren – regardless of their age.

REASON #3: RETIREMENT PASSIONS AND HOBBIES

Picture a life where mortgage payments, funding your children’s education, and covering wedding costs are no longer on your plate. As you get older, these financial obligations may fade into the background.

With reduced financial burdens, retirement can bring a sense of freedom. This offers a chance to refocus your energy on activities that get you excited!

Whether you’re travelling to explore the world, learning a new language or a musical instrument, retirement is your chance to embrace all these new passions and adventures.

Beyond simply enjoying your hobbies, these fresh experiences can bring personal growth. Following your passions adds chapters to the story of your life, filled with learning, achievements, and an ongoing journey of self-discovery.

I see retirement as an open door to get involved and participate – not only for your own interest but also to get involved in the world around you. It’s a chance to give back, making a significant impact on society that truly matters.

If you think about it, you have built up a lifetime of knowledge, skills and experiences. Use these to help people, be generous, share knowledge and your life experiences.

A lot of people who’ve retired discover a true sense of purpose by devoting time to causes they deeply care about. Whether it’s guiding others, taking part in local projects, or offering a helping hand to charities, they set in motion waves of positive change. So how could early retirement positively impact you? Well, it could allow you to pursue those passions and interests that you have put off for so long.

REASON 4: EMRACING THE UNCERTAINTY IN RETIREMENT

At times, life can feel like a roller coaster. You’re not quite sure what’s waiting around the next bend. Financial markets share that same unpredictability.

Consider the past couple of years – they’ve been a volatile ride for everyone. We have had to deal with market swings, with high inflation and interest rates. As well as the cost-of-living crisis.

Approaching retirement in times like these, you might have had a ‘hold on a minute’ moment. It’s natural to want predictability, especially when making significant decisions like retiring.

Let’s be real, we all want for some predictability. Waiting for the storm to pass seems like the safe route.

But here is the downside – if we keep waiting for calm waters, we could be waiting to retire forever.

Take a look at this chart. It’s a snapshot of market ups and downs over the years. A visual representation of a century of US equity returns and economic turmoil.

This investment chart paints a picture of market history – from the Great Depression to the Tech Boom & Bust, and more recently, the 2009 Financial Crisis and the COVID-19 pandemic.

While investing comes with risks, the chart also reveals a vital truth – markets have shown resilience and a knack for bouncing back over the long haul.

The chart emphasises that the market is a cycle of growth and decline. Unfortunately, we can’t control the market, but we sure can steer our retirement plans.

Smart strategies, diversification, managing costs, stress-testing financial plans – these ensure that we have a plan for the worst-case scenario as well give us peace of mind that we will be ok. Long term planning and being adaptable can be our best asset.

So, if you are waiting for stars to align in order to retire you may wait for a while and missing out on some of your best retirement years.

Feel free to have a look at financial forecasts, but don’t let them shackle you from living your retirement dream to the fullest. Embrace the journey, the uncertainty, and the incredible moments that await.

REASON 5: YOU ARE ALREADY RETIREMENT READY

Believe it or not, you might already be in a more comfortable financial spot than you realise in order to retire.

You may have set a vague financial goal, like hitting that £500,000 milestone in your pension in a couple of years. Those numbers often sound great, but what if that is delaying your retirement?

Your current financial picture might already be sufficient to provide you a sustainable income during your retirement.

So, it may be time to reassess your personal needs and situations and you might just realise that you’re more prepared than your originally thought.

Have another think of your retirement dreams. Imagine your lifestyle, the costs, healthcare needs, and your activities.

As you delve deeper, you could see that your savings and investments are doing a solid job at covering these bases.

If you still feel uncertain? I suggest working with an independent financial adviser. They can help you understand how much you require to live a happy and successful retirement.

This will help you understand your retirement readiness and ensure you are not delaying your retirement unnecessarily.

SUMMARY

In conclusion, retirement is a monumental decision that deserves careful consideration. As we’ve explored in this article, there are compelling reasons to consider retiring a bit earlier than expected.

Ultimately, the decision to retire early is about prioritising what truly matters to you.

It’s about seizing the moments, cherishing relationships, pursuing passions, and being financially prepared.

So, as you navigate the path toward retirement, remember that the journey is yours to shape.

Ready to embrace early retirement? Get in touch for a free, no obligation call.

RISK WARNINGS

• This article is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
• A pension is a long-term investment and the value is not guaranteed. Therefore the value of your investment and the income from it may go down as well as up.
• Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
• The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change in the future.
• Past performance is not a reliable indicator of future performance.
• The Financial Conduct Authority does not regulate Cashflow Planning.