There is no financial advisor out there who can argue against the statement that “you shouldn’t retire early”.  Even if you have passive income streams, working at a job until retirement will give you lots of benefits like pension, healthcare and good health.

Here are a few reasons why you shouldn’t retire early.

1. You’ll have to take a massive hit on your social security payments

The social security retirement age is 66 years and 2 months for people born before 1955 and it is raised to 67 for those born in 1960 and later. You probably may have an amount that you will be getting per year–after retirement– as your social security payment. For most people that number looks quite enticing and probes them to retire early.

early retirement

But are you aware that that number is calculated keeping in mind that you are going to retire at your full retirement age?

So, it’s obvious that you will have to take a hit on your social security payments if you decide to retire early. And the early retirement age is 62. Your social security payment per month will reduce and hence the yearly payments will be less. Imagine how the money you will be losing in the next 20 years. This is one of the biggest reasons you shouldn’t retire early.

2. Sudden change in schedule can disrupt your life

So, you have been working for the past 30 years and want to suddenly quit your job and retire early? On the surface, this might seem like a great idea. You no longer have to get up early and deal with the traffic while you commute to work. You can spend so much more time with your loved ones and go on vacations to the destinations that you always wanted to visit.

But be careful. Without preparation, early retirement can come off as a shock and throw you off from the beaten path. It’s a different thing if you decide to retire early to work on your personal projects or to run a business that you already have started. But if you retire early for the wrong reasons, you might be making a huge mistake that might also cost you your life.[1]

3. You will live longer than you think

There has been a no safer and better time to live on this planet. With advancements in medical science and technology, it is now possible to live a lot longer and healthier than ever before. This makes it quintessential for you to work until your full retirement age. By working till you are 67, you will not only save more money but also stay healthier as working keeps your mind and body active.


If you don’t believe me? You can ask any retiree and they would eagerly want to start working again. Most people grow wiser and stronger as they age. If you retire early, you will never know what professional heights you would have achieved by continuing to work longer.