Waiting until full retirement age to retire can seem like a safe option. Ensuring you'll have more money on hand in your golden years likely feels reassuring, but it’s not always the best decision. There are some good reasons to retire sooner rather than later.
It might take some extra planning, but it’s possible. If any of these reasons apply to you, you might want to see if you can retire early.
Eliminate your late tax debt
Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.
Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.
Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.
If you want to work part-time
If you just want to work part-time, “retiring” from your full-time job can give you the time to do so. Social Security can supplement your income, since you can work part-time and still receive Social Security retirement benefits.
Looking at it the other way, your part-time pay can supplement your Social Security checks, which will be smaller if you claim them before full retirement age.
As long as you don’t make more money than $21,240 per year, you can work as many or as few hours as you want to without further reducing your Social Security benefits.
To start your own business
Some retirees choose to go into business on their own. It's easy to see why. You won’t need to report to a boss and can put as much or as little time into your venture as you decide.
You could invest in real estate, start a landscaping business, and so much more. The possibilities are endless.
When you aren’t reporting to a 9-to-5 every day, it allows time for you to build the business you’ve always wanted to. Starting your own business could even boost your bank account more than if you stayed at your job.
If you don’t expect to live as long
Few people really want to work until the day they die. If you have a decreased life expectancy due to health issues, early retirement can allow you to enjoy those years you have left.
It doesn’t always make sense to work until full retirement age if you won’t live long enough to spend your increased savings.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
For more time with loved ones
Some people retire sooner to care for a loved one with an illness. Leaving the workforce to care for someone else is a difficult decision, but spending time with them while you still can be reason enough.
In fact, retiring will give you more quality time with your family and friends whether they need your help or not. If you don’t want to wait to start enjoying your loved ones more, it could make sense to retire sooner rather than later.
When you can afford to
If you have enough money saved to live out your retirement comfortably, there is no reason to continue working if you don’t want to. Not everyone can do this, but the sooner you begin planning for retirement, the sooner you can leave your job.
Be sure to factor in all your retirement income when deciding if you can afford to retire. In addition to your savings, you should consider your pensions, 401(k)s, Social Security benefits, and investments.
Just be careful to leave a cushion for things like taxes, long-term care, and unplanned expenses.
To enjoy more free time (while you can)
Seniors often face more health problems than younger people. Reduced mobility, in particular, is a common aspect of the aging process.
You’ll want to spend your retired years having fun and enjoying freedom, not at appointments every day. You can retire sooner to enjoy more years of good health and independent living before age starts to limit your abilities.
To improve your health
Working 40 hours every week can take a toll on the body and the mind.
If you feel that working full-time is negatively impacting your health, it’s time to think about retiring early. Your well-being isn’t worth waiting those few extra years to retire.
If your health is already suffering, maybe it’s time to call it quits and start focusing on yourself. Spending your time improving your health so you can enjoy a more fulfilling retirement is always worth it.
If you’re burnt out
When you hate going to work every day and feel burnt out from the daily responsibilities, retiring sooner becomes a more appealing option. You can always work part-time at a less stressful job if you’re not quite ready to give up working altogether.
Spend your extra time doing things you enjoy to help preserve your mental health. Poorly managed stress can lead to health problems, like heart disease and high blood pressure. No job is worth your health.
To follow your dreams
There is nothing wrong with retiring sooner to follow your dreams. If there’s something you’ve always wanted to do and your job is holding you back, maybe it’s time to consider retiring early.
Life is only so long, and it’s important to find fulfillment and happiness while you can. You’ve given decades to your career. Consider giving more years to yourself so you won’t regret it when it’s too late.
Take advantage of historically high rates to grow your wealth
Are your savings just sitting around, not earning much interest? It's time to make a change and put your money to work for you! With CloudBank 24/7, you can earn more interest on your money today ... while keeping your cash OUT of the stock market.
Here’s their secret: CloudBank 24/7 amplifies your money by doing what many banks refuse to do … paying you a rare 5.24% APY (annual percentage yield)12 on your cash.
When you deposit your money into this high-yield savings account, you can supercharge your emergency fund, short-term savings, return on cash, and more with interest income generated from their high 5.24% APY payout.
The best part? There are no fees, you can withdraw your money at any time, and opening an account takes as little as 3 minutes. CloudBank 24/7 is FDIC-insured through Third Coast Bank SSB and cybersecurity is a top priority, ensuring your data is kept safe.
Bottom line
Retiring early isn’t easy. Making sure you are financially prepared to leave the workforce takes planning and years of smart financial decisions.
If retirement is on your mind, it's never too early to start planning. Just make sure you take the necessary steps to lower your financial stress before you get there.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn 2% cash rewards on purchases
Benefits
- $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Earn unlimited 2% cash rewards on purchases
- Intro APR on purchases and qualifying balance transfers
- $0 annual fee
Drawbacks
- Has foreign transaction fee
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.