Early retirement means different things and ages to different people. For some, that might mean 45. For others, that might mean any age before 65. No matter the definition, however, few people these days are able to take the leap so young.
The ability to retire is highly dependent on the assets you have available to support yourself for the rest of your life. And even if you have enough money, retiring early may not be the most satisfying option.
Some of the most common reasons people retire early aren’t necessarily positive. Often early retirement is the result of an unplanned event. A layoff, injury or the need to care for a family member pulls people away from their careers before they’ve fully matured. For others, early retirement seems like the only way out after feeling stuck in an industry at age 40 or 50.
When to retire is an entirely personal decision that should be thoroughly considered prior to making the leap. Too often people retire and only wind up feeling unsatisfied with their life. They discover their job was more than just a paycheck — it defined who the were, gave them purpose and provided a much needed social outlet.
So before you decide to retire early, consider another option that might provide higher satisfaction: a new career. Yes, more people are deciding to start a new career at age 50 or later in life. In fact, this time can be ideal for pursuing a dream that was put off for numerous reasons when you were younger. Is this the right time to turn your hobby into a career or finally start that consultant business?
The trend of entrepreneurship among older generations is growing. Data analyzed by the Kauffman Foundation shows that Americans 55 to 64 have started new businesses at a higher rate than those in their twenties and thirties in every single year from 1996 to 2013. Businesses started by people ages 55 to 64 accounted for nearly one-quarter of all new businesses started in 2013.
Depending on your age, it’s entirely possible to have several decades of fulfilling work ahead of you. And when you’re doing something you truly enjoy or you get the flexibility to be your own boss, early retirement just doesn’t make sense.
The first step when considering a new career at a later age is to think about how you can combine your existing skills with work that is interesting and rewarding. This is an ideal time to work with a career coach who can help you understand your desires while carefully navigating concerns and next steps.
Always wanted to be a ballerina? See if you can transition into a dance teacher or work at the local theater. Did you grow up wanting to be a rock star? Research how you can start teaching an instrument or join a band that performs local gigs. Do you adore cars? Turn your restoration hobby into a thriving business allowing you to help other gear-heads repair the grand automobiles of yesteryear.
A second (or third!) career can be a great alternative to early retirement. A new job might be just what you need to keep busy, engaged and financially solid.
