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Main Advantages of Early Retirement

written by: Kristina Dems•edited by: Elizabeth Wistrom•updated: 8/17/2010

The immediate advantage of early retirement is an increased amount of money in the bank account. This benefit, however, can be negated easily. Efficient fund management clearly has to be considered to gain more advantages.

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    Pension Funds Anybody who has toiled for many years as a cog in the labor force will certainly be interested in the advantage of early retirement. This presupposes, of course, that a person is already eligible for either state or private pension plans for retirees who’ll suddenly have fatter bank accounts.

    In most pension funds, the mandatory retirement is at age 65. Some companies also offer early retirement packages that employees may avail of. In some instances, a company may also be forced to retire their employees early because of adverse business conditions or some physical reasons that prevent a person from performing assigned tasks or duties.

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    Unshackled from a Routine

    A forced early retirement can be a blessing in disguise. A retiree will most certainly be freed from the shackles of a nine-to-five routine. Eight or more hours of time will be immediately available for personal pursuits instead of being constrained by office or factory work hours plus commuting time to the place of employment.

    Having more time for leisurely activities will be the immediate impact. Enjoying this benefit to the hilt, however, has certain caveats. It hinges on the value of the pension that the retiree is receiving or on the proceeds received under an early retirement package. The amount that a retiree receives has to be sufficient enough for the rest of his or her lifespan.

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    Increased Life Expectancy

    An early retirement also opens up the possibility of living longer, with a better quality of life at that. The new-found independence will be a good time to spend on life-prolonging physical fitness activities.

    In all likelihood, older retirees may no longer be strong enough to pursue such vigorous and rigorous regime. The obvious advantage here is that it is better to retire while relatively younger and stronger. With a fit body extending to the golden years, the medical risks for an individual will be significantly lessened.

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    Reduced Stress

    Following the age-old adage, a sound mind in a sound body, retiring early will likewise relieve oneself of the daily work stresses often encountered in the workplace. This is especially so if one has been engaged in highly stressful jobs or if an individual has been working for years under a demanding manager or supervisor.

    In some instances, however, this sudden jolt in the lifestyle can be a stressful experience itself. The retiree must, therefore, be prepared to live in a different life context and perhaps associate with some kindred souls in a retirement community.

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    Spiritual and Intellectual Benefits

    Joining such a community is a good avenue for those who want to take advantage of early retirement. The activities in these communities are planned to address the needs of retirees.

    As a group, the retirees can involve themselves in some intellectual pursuits, and act as advisors to the more junior members of society. In many occasions, the retired seniors have taken their new path in life as spiritual persons, contributing their share in the deeper and more profound needs of a community.

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    The advantages of early retirement are many, indeed! If you are among the lucky few - be it intentionally or not - it is best to focus on these advantages, and use them in your favor.

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