By Ryan Pauline

Technically speaking, the later you retire, the more you get from your retirement benefits. This might be true from usual retirement fund providers like the social security and other pension providers. But still, you would not want to work up until you reach the age of 65 or 70, do you? However, there are still some risks whether you decide to take on the retirement at an old age or if you want to enjoy your funds at the time you want to. If you prefer the latter, you need to make some serious early retirement planning.

You may be offered an early retirement from your current employer or you have decided that for yourself. Either way, careful planning must be considered. When deciding whether to take on an early retirement, you should take into consideration how much money you will be getting after you quit your job. Add up those funds you have accumulated from your social security and pension. You can also ask the following questions to your employer if they have offered you an early retirement package or also known as severance pay:

* Ask them what benefits you can keep. Since you used to have your health insurance while you are still at the company, it is important that you can still keep them even just until the provision for it at the time of application expires. This is because it can be too costly to purchase a new one especially if it’s for an individual account.

* Determine how your severance pay will be given. It would be hard to budget your money if your retirement fund will be given in one go. Either way, it can be a choice you can make or a bargain you can offer for the firm you worked at.

After knowing such things, you can then assess your capability of handling an early retirement through this point of consideration:

* Finding another work. Are your chances of finding another place to work somewhat impossible or is it not too much of a long shot? If you think you have skills that are of high demand in the industry today, then you can probably set your sail off. But if not, it is more practical to do some more in-depth early retirement planning and just stick to your current position.

Choosing to retire at an early age is really tricky. But hey, no one said it would not be worth it. However, before taking on that offer, make sure that you were able to go through careful early retirement planning. And even if you do, make sure that you still have other sources of income aside from your retirement funds. This does not necessarily mean taking on a full time job because that means you haven’t retired yet. You can still earn more money using the money you get from your early retirement. For this part, you can seek help from financial managers and other fund advisers on how you can make the most out of it through wise investing and spending.

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