3 Problems With Retiring in Your 50s | Smart Change: Personal Finance | journalstar.com – Lincoln Journal Star

I’ll admit, there’s a part of me that would love to retire in my 50s. I have big plans for retirement, and I’d love more time to devote to my hobbies. But even though I’m prioritizing retirement savings now, I don’t know that I’ll actually retire that soon. The advantages of early retirement are obvious, but it has serious drawbacks too. Here are three you should bear in mind if you’re thinking about retiring in your 50s.

1. Your savings have to last a lot longer

If you retire in your 50s, you can probably expect to spend about 30 years in retirement, and some people might even make it to 40 years. You’ll need a lot of money to cover your expenses during that time, so you have to get comfortable foregoing certain purchases today so you can save more for retirement.

Image source: Getty Images.

An extra-long retirement also increases the risk of running out of money prematurely. It’s difficult to know exactly how much you’ll need for retirement under the best of circumstances, and with a 30-plus year timeline, there’s plenty of opportunity for unplanned expenses to throw off your budget. Even if it’s just a few thousand dollars here and there, that can add up over time, and you could find yourself without enough money to cover all of your planned costs in your final years.

People are also reading…

  • Rep. Jeff Fortenberry found guilty on all three counts
  • Review: Elton John has the perfect way to say goodbye at PBA
  • Girls basketball: The 2021-22 Super-State, all-state and honorable-mention honorees
  • ‘Wild West territory’: New fight over pipelines emerging in Nebraska
  • Former North Bend teacher sought in abuse case
  • Don Walton: Fortenberry resignation personally tragic, politically complicated
  • Fortenberry to resign from Congress, setting the stage for special election
  • Tragedy strikes campaign to legalize medical marijuana in Nebraska
  • A year after son’s death in Lincoln motorcycle crash, family asks, ‘Where’s the justice?’
  • Describing Raiola as ‘very, very interesting guy,’ Nouili says new coach changes OL mentality
  • Boys basketball: The 2021-22 Super-State, all-state and honorable-mention honorees
  • Life in the Red: Mark Whipple’s son, Austin, newest offensive QC coach for Huskers
  • Jeff Fortenberry trial offered tangled web of oddities
  • Nebraska lawmaker apologizes for citing false reports of litter boxes in school bathrooms
  • Nebraska authorities rescue hostage, capture escaped inmate

If you …….

Source: https://journalstar.com/business/investment/personal-finance/3-problems-with-retiring-in-your-50s/article_e58ec54b-2657-5ad3-aab3-a9b11d677eaa.html

Leave a Reply

Your email address will not be published. Required fields are marked *