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For many reasons, more and more people are retiring at an early age, some because they find out; they can, in other countries, in comparative luxury. The growing trend for the retirement is also based on the fact that people are enticed to retire early than continue working and wait until they reach their retirement age of 65.
In fact, most of the surveys conducted in the United States asserted that 60 to 65% of the respondents would dearly love to retire early. But they just don't know how to swing it. They evidently do not know about the Philippines where it "can be,” and in class. There are many benefits that people can derive when they retire early despite some of the negative financial consequences some experience like I did.
Here is a list of some of the reasons why retiring early can be a pretty risky activity, certainly in a costly country. If you retire in a low cost country, were your language is spoken, English for most reading this, the list below is not so daunting.
1. Social Security Changes:
When people will retire at an early age, there is a great possibility that they cannot immediately obtain their Social Security benefits. This is because according to the rules and regulations of Social Security, anyone who is born after 1938 will have to wait longer than their retirement age of 65 before they can get their benefits.
Hence, early retirement may only contribute to a negative upshot if the older people's finances where not managed properly and the only thing they expect to help them are the Social Security benefits they can get. Social Security is just not enough for the States. In the Philippines it "can be" pwede.
2. If people who took early retirement get sick, they cannot acquire some Medicare benefits.
This is because the age when people can get their Medicare benefits is when they already turn 65. Hence, if they are hospitalized and they have already filed for their early retirement, they have to obtain the necessary amount of money in order to cover the expenses in the hospital without Medicare. If you are in the Philippines where a visit to a specialist is $3.00, unless you have a serious illness you may be able to get by very well. Everyone can be financially injured by serious medical bills, but more likely in a developed country than here.
3. Penalty charges apply to those who retired early and had withdrawn their IRAs early.
For people who would like to retire at an early age and wish to obtain their IRAs, they have to face a hefty 10% penalty charge.
Moreover, experts contend that the nest egg of people who wish to retire early is only 80% of what they should be getting when they retire at the age of 65.
The bottom line is that early retirement is, indeed, a personal choice and preference of an individual but one must consider the factors that may affect their life in the end. Some like me feel early retirement in the Philippines is really good deal, a new and better life too. But I had visited several times, been an international traveler and found the spot I wanted. Others should come over first and check it out. No country for everyone. You need to be a little flexible and culturally adaptable to change culture, have tolerance, rejoice in the differences not fight them.