The dark side of early retirement

If you look carefully online, you'll read dozens of articles about wanting to retire early or how great an early retirement lifestyle is. The FIRE (Financial Independence and Early Retirement) movement grew rapidly in 2009. The fact is that early retirement has a lot of negative aspects that no one talks about. Let's explore the many reasons why people want to retire early, why these reasons exist, as well as understand why we should all think twice before pulling the gallows early.

Why people want to retire early

1) Not finding the right job.

The first reason people want to retire early is not finding a job that gives them enough satisfaction to do for the rest of their lives. No one leaves a job they love. If there was a job that pays $80,000 a year for morning walks and getting an afternoon massage, I'll do it forever!

2) Easier way out.

If you're an underperformer, you tend to experience an imperfect lifestyle. And it is easier to give up as a result. Suppose you are a research scientist who after 10 years has not produced any relevant research and has not found any cure. Instead of continuing to fail, she decided to give up and get out of the game. Early retirement is like a cowardly way of not having to be the best anymore.

3) Feeling hopeless.

During the recession, a huge number of people began writing about location-independent lifestyles that allow one to break free from work from 9 a.m. to 5 p.m. and "do what they really want." In fact, we all know that what they really wanted was to have a good job and to be accepted by society. Due to the recessions in 2008 and 2009, many were displaced with nowhere to go. If they did, they might have thought differently. In an economy where everyone loses money left and right, what is the purpose of the business as some believe. I think the same could happen in 2020 as well.

4) Recognize that time is precious.

Life expectancy ranges around 80 years. Thus, you will only have 20 years of retirement to enjoy your life if you retire after the age of 60, which is what most people do. People in this camp have an increased awareness of time. Therefore, they are doing everything they can to make sure that they are financially stable sooner rather than later. I am a firm believer in this process of thought. But at the same time, I don't want to cut off my potential. The worst is running out of money and getting old so I can't do anything about it.

Risks of early retirement

1) Oh, you changed your mind.

Imagine that you retire at age 37 after 15 years of working after graduation. She spends the next three years traveling the world, living a leisure lifestyle and experiencing new things. At the age of forty, you realize that the reason why traveling and playing is so fun is work! You have the desire to return to the game. But who would risk hiring a 40-year-old with a 3-year employment gap?

2) The owner runs out in early retirement.

No matter how conservative we may be in our financial needs for retirement, something unexpected can happen. Maybe you get into a medical disaster, or your house collapses. Perhaps your investments will collapse due to the massive economic recession. Who knows what the future holds, which is why the right safe withdrawal rate is dynamic. But if you participate in "normal" early retirement, without getting huge millions, you may find yourself needing more one day. Again, the employer views the large gap in hiring as more serious. So it may not be possible to hire you if you need to return.

3) Lose contact with friends and family after early retirement.

It's good to have all the time in the world to do whatever you want. But if your friends and loved ones are busy working all day, they won't be able to join you on your midday trip or adventure to Bora Bora. They may also have family to take care of during the evenings and on weekends. If you've been on vacation alone, you'll soon realize how lonely it is when others are busy leading their own lives. There is an epidemic of loneliness spreading around the world, which has been accelerated in part by the pandemic. Working from home is nice, but it also causes people to lose vital connections for a better life. If you retire early, you'll feel more lonely if you don't have any hobbies or friends outside of work.

4) You may lose your self-esteem and the respect of others.

Unless you're there to help the poor, fight racism, or try to make a positive difference in people's lives, you may start to feel depressed because you contribute very little to society. You need a goal in retirement, otherwise, it's hard to stay retired. Others may stop respecting you because you don't do anything productive either. Traveling the world and writing about how wonderful your life is is a very unproductive endeavor. Too many wealthy friends retired early in the first dot-com bubble in 2000 reported that they wished they hadn't gotten rich so quickly. Instead, they wish they had worked harder to get their money.