5 Reasons Entrepreneurs Shouldn’t Retire Too Soon
Why did you become an entrepreneur? Was it because you wanted to earn more money? Or, maybe it was the appeal of being your own boss and everything that comes with that.
For most entrepreneurs, the end goal is being able to retire with a business generating a passive income stream. And, of course, retiring early is often a goal too.
But, before you decide to head toward the greener pastures of retirement, here are few reasons you might want to hold off on that early retirement.
1. You Might Run Out of Money
One big reason entrepreneurs shouldn’t retire too soon is the possibility of running out money. The future is not set and even the best laid plans can fail.
As an entrepreneur you could work hard, achieve success, and save millions for your retirement. But what if you retire at age 35 and get a catastrophic illness when you are 50 that drains your finances?
In order to protect yourself and your finances it might be better to continue working, at least part-time. Waiting until you are closer to the true retirement age of 65 can give you peace of mind as well as a more secure future.
2. Reasons Entrepreneurs Shouldn’t Retire: You Might Get Bored
Some people who retire experience boredom when they do not have a job any longer. They may lose their sense of purpose.
Additionally, those who retire early may have less social contact, such as with friends, family and co-workers. This can lead to depression and a loss of self-esteem.
Conversely, entrepreneurs who continue to work have a feeling of accomplishment in what they do each day. This is just one more reason why entrepreneurs shouldn’t retire too soon.
3. Health Insurance May be Higher
If you have health insurance through your job, you’re probably paying plenty already. Nevertheless, you can bet it’s far less than if you had a private insurance policy.
Insurance coverage and prices can vary vastly, but you must account for this in how much you have set aside for retirement. Furthermore, the prices are practically guaranteed to go up over the years.
You need to be certain there is enough money set aside to cover your health care expenses both at the onset of retirement and in the future. Nobody has ever been overheard saying that they wished they would have saved less.
4. It Might Shorten Your Life Span
There is evidence that retiring too soon could shorten your life span.
Retirees with too much time on their hands and no sense of purpose may not stay active, which may contribute to an early demise. To keep your sense of purpose and your life you may want to rethink retiring early.
5. Decrease Your Social Security Benefits
By retiring early, you run the risk of decreasing your future social security benefits. I know you may be thinking, what social security benefits?
Since the future is unclear you don’t really know for sure there won’t be any social security benefits when you retire. But do you want to take the chance of losing them by retiring early?
Naturally, there are a lot of compelling reasons to retire early, such as more leisure time, vacations, and less stress. However, there are also a lot of really good reasons entrepreneurs shouldn’t retire too soon and put their futures in jeopardy.