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6 things you may not know about early retirement, but need to

Early retirement is one of the popular trends brought in by millennials. Taking into consideration our busy work schedules and high work pressures retiring early might sound like the best option for everyone. However, to have an early retirement, you will have to plan a host of things such as your pension plans and life insurance savings.

We bring you 6 things that you must know if you are considering stepping out of the workforce in a few years with early retirement:

1. Adopt to your new innings
   
   All the running around, meetings, hopping on flights regularly for meetings and coffee breaks will all come to a halt. A sudden shift in lifestyle will take you some time to adjust to it. Don’t fret if you become restless initially as you will start making room for doing new things that you always wanted to do.
    
2. Have a pension plan in place
   
   A lot of people wait to get to a certain age or wait for a few years before they can step out of the workforce. However, there’s no right time to retire and you must take the plunge whenever you feel like. Plan well in advance and have a guaranteed pension plan to have a secure retirement whenever you want.
    
3. Save more, spend less when you retire early
   
   A lot of people delay retirement thinking that they are not completely ready to sustain themselves financially. However, after retirement, you will adapt to a different lifestyle and may not need a massive sum of money you think you need. If you calculate your expenses, you will realize that you can suffice your basic needs with minimal costs.
    
4. Invest right, and earn money during retirement
   
   Not working does not mean not earning money. Save up and pitch in investment instruments that will give you lucrative returns after you retire. Also, have a passive source from income such as rent from your property. Create passive sources of income early on and have a good long term savings plans if you wish to retire early.
    
5. Tweak your post retirement lifestyle as per your financial needs
   
   After you retire, your focus will shift from work to yourself completely. Hence, you will most probably adapt to a lifestyle that will give you a peace of mind and keep you happy. Money won’t be the sole focus anymore as you will start evaluating your lifestyle and life goals in a new way after the retirement.
    
6. Early retirement is not everyone’s cup of tea
   
   Evaluate what exactly do you want, if you wish to retire early. In case, your reasons are a burnout or break from your hectic schedule, then assess your circumstances carefully. It’s important to know whether you can sustain yourself and your family financially if you have an early retirement, and then make the final call about having an early retirement.  If that is not the case, looking for a job change or moving to a career option that will pay you well is recommended.

If you have decided to have an early retirement get to know all the things that will affect you from your lifestyle changes to financial plans and be ready for the same. 

Disclaimer:
The aforesaid article presents the view or an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ before making any decision.

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