Early retirement refers to the decision of leaving the workforce before the traditional retirement age, which is typically 65 years old in the United States.
While the age at which an individual can retire with full Social Security benefits varies based on their birth year, it generally ranges between 66 and 67 years old.
Early retirement may be possible for individuals who have accumulated enough savings and investments to cover their living expenses without relying on income from work.
However, early retirement may also require careful financial planning and budgeting, as retirees may need to cover their expenses for a longer period of time than those who retire at a later age.
Retirees who choose to retire early may also need to consider the potential impact on their Social Security benefits and retirement savings, as starting Social Security benefits before full retirement age can result in reduced monthly benefits.
Additionally, withdrawing money from retirement accounts before age 59 1/2 may result in penalties and taxes. Early retirement may also offer opportunities for pursuing new interests, traveling, and spending more time with family and friends.
However, individuals considering early retirement should carefully weigh the potential benefits and drawbacks and consult with a financial advisor to ensure that they are financially prepared for this decision.