Pros & cons of early retirement

Many times after losing a job or responsibility of family members, people are forced to retire early. Due to this, one has to face a lot of financial losses in the absence of financial planning. If the retirement is planned and the financial planning is done earlier, the decision to retire earlier would prove to be beneficial. However, it is better to weigh the pros and cons of early retirement before you make any concrete decision.

Pros of early retirement could be as mentioned below:

·One can pursue one’s hobbies or passions which could not be done while you are working.

·There would be greater opportunities to travel and explore places at leisure.

·One would be able to start a healthy lifestyle paying more attention to health.

·There would be no work-related stress like long travel, long working hours, mental stress /work tensions.

·Opportunity to start a business of interest

Cons of early retirement are as follows:

• ·As there would be no steady flow of income anymore, it would affect the lifestyle you’re leading before retirement.
• ·There could be heavy expenses as compared to the less income.
• ·Savings would be less.
• ·Health expenses and hospitalization expenses would cause strain on the savings as there will be no more health benefits/coverage for self and family provided by the employer if any.
• ·The social security benefits of pension or health care facilities would be less.
• ·One of the major cons would be the stress caused due to financial and other losses affecting mental and physical health.

To enjoy the benefits of retirement, it is essential to contemplate on how to plan for retirement. Managing savings at an early age and other financial planning would help manage life after retirement. You can opt for guaranteed income plans by studying them and investing in the right plan that suits your requirement the most. Such plans are specially designed to offer life insurance with maturity benefits and guaranteed payouts. It offers financial security and one can receive the income yearly, half-yearly, quarterly, or monthly according to the requirement.

Benefits of guaranteed income plans are:

·Payout of maturity benefit, which includes a bonus amount.

·Death benefit

·Income tax benefits

·Additional riders like Accidental death benefit rider

You can decide on the list of priorities to be fulfilled after retirement such as children’s marriage, education, building house, debts, and loans to pay, healthcare, etc. Different plans have different policy terms and payment terms. Accordingly, you can invest your money after retirement to lead a happy and peaceful life.