14 Pros and Cons of Early Retirement

couple enjoying early retirement on a beach

Early retirement isn’t for everyone, but for those who plan it strategically, it can be a great way to enjoy it comfortably. As with anything significant, you must go through the pros and cons of early retirement to determine if this is the right step.

Fear not, as that’s precisely what we will do in this post. This guide will outline the 14 pros and cons of early retirement to give you all the information you need to plan ahead. So with all that said, let’s start.

7 Pros of Early Retirement

Let’s start with the good side of early retirement.

Freedom to Pursue Interests

One of the biggest pros of early retirement is that you have more time to pursue your passions and interests. This can range from hobbies to travel to learning new skills and exploring the world. 

With no job to tie you down, you can use your free time to enjoy the activities that bring you joy. Additionally, early retirement allows the possibility to turn your dreams into reality. After all, early retirement is meant to be fun, so you’ll get more time to do the stuff you want. 

Spend Time With Your Family

One of the most rewarding benefits of early retirement is the time you can spend with your family. Whether it’s playing with your children or helping an aging parent, spending quality time with your loved ones can be invaluable. 

Early retirement also allows more flexibility when it comes to family vacations and special occasions. Again, considering there’s no job to worry about anymore, you can take the time to really enjoy the moments with your loved ones that matter most.

Explore A New Career

Early retirement doesn’t just have to mean lounging around and doing nothing; it can also be a great opportunity to explore a new career. For example, if there was something you wanted to do in your life but didn’t have the chance to do before, now you have the flexibility to do it. 

You can pursue a different career path, start a new business, and build something of your own. You can do all this without worrying about your current 9 to 5 job.

Less Stress in Life

One of the most obvious advantages of early retirement is that it eliminates daily job stress. Without the daily stresses of commuting, a demanding boss, or tight deadlines, you can relax and enjoy a stress-free life.

early retirement sign

Additionally, you have more control over your time, and how you spend it, so you can reclaim your life and find balance. This advantage goes against the previous one mentioned. But the freedom to spend your time how you want it and without stress is too good an opportunity to pass on. 

It’s Great For Your Mood

Early retirement brings a sense of satisfaction and contentment that can positively affect your mood. Choosing how you spend your time and the freedom to do what you want will lift your spirits and make you feel a sense of purpose. 

Additionally, the lack of stress from the demands of a 9-5 job can be beneficial for your mental health, freeing you from any negative energy that may have been weighing you down. Finally, having more time to spend on yourself and relax can improve your mental well-being, creating a healthier and happier lifestyle.

It Lasts Longer

We all reach a point where we cannot wait to retire. So why save yourself the trouble of waiting longer when you can enjoy retirement longer if you retire earlier?

Early retirement is a great way to make sure that your retirement years are longer and more enjoyable. This gives you more time to enjoy the activities you love, travel, and spend time with your grandchildren. 

The benefits of early retirement can be great, and it should be considered when planning for your future. With the right planning and preparation, early retirement can provide years of enjoyment and fulfillment.

You Can Plan On How to Retire

If you’re thinking about early retirement, you probably have a plan for what you’ll do once you finally make the call. Therefore, the last benefit of early retirement is that you can start planning your early retirement and how you will spend your time. 

7 Cons of Early Retirement

Not everything is roses and sunshine when it comes to early retirement. So, let’s look at the seven cons of early retirement.

Less Social Security

One of the downsides to early retirement is that it often means less Social Security. The earlier you retire, the less money you can receive from Social Security. Moreover, you start receiving social security at 62. So if you retire early, you might have to rely more heavily on other sources of income.

This can have a significant impact on your life. Additionally, since you are not contributing to Social Security for as long, it could mean a smaller income for later in life. That’s precisely why you should always plan your retirement income before retiring.

Your Savings Will Need to Last Longer

Early retirement also means your savings will need to last longer. This could pose a problem if you plan on retiring early and don’t have enough saved up for retirement. 

retirement savings running low

What also goes against your retirement planning is the increased cost of living. With the cost of living increasing, it can be difficult to sustain your finances over the years. Therefore, it is important to have a budget and a plan to make sure that your savings will last throughout your retirement.

Retiring a few years ahead of schedule could put serious pressure on your savings and could lead to unforeseen problems later down the line.

Finding Health Insurance Could Be A Problem

Another major downside to early retirement is that it can be difficult to find health insurance since Medicare starts at 65. It’s common for employers to provide health insurance for their employees, and when you retire early, you may no longer have access to the same benefits. 

Additionally, the cost of health insurance can be prohibitively high if you don’t have an employer subsidizing it. But since you are not working, you may not qualify for government programs offering health insurance.

You Might End Up Missing the Office

Early retirement means you will no longer be around colleagues that you have built strong relationships over the years. You will also miss other aspects of life, such as work and the sense of purpose and accomplishment that comes with a well-done job. 

That’s precisely why many people who retire early choose to work in a different capacity. Whether part-time or starting their own business, it’s surprisingly common for people who retire early to miss working. 

You Might Have to Work Harder To Get There

If we take everything we said about early retirement and your savings, health insurance, and social security benefits into account, it presents a significant issue.

Namely, you will have to work harder in your final working years to save up enough money to retire early. Early retirement is a big decision, and it certainly isn’t easy to pull off.

Most people that retire early do so because they have the financial power to do so. If you’re not ready for it, chances are you’re only going to make it more difficult to sustain your current lifestyle. 

It Can Be Mentally Damaging

Early retirement is a double-edged sword. While there are certainly good aspects to it, there are also some big bad ones. There isn’t a more important drawback to early retirement than the potential negative effect it could have on your mental health. 

This comes from feeling a lack of purpose, routine, and the feeling of contributing to society. Some people find it very difficult to cope with these feelings. What ultimately happens is they begin to suffer from depression. They also begin to miss their coworkers and going to work, a drawback we already mentioned. 

So it’s important to acknowledge the mental side of early retirement, as some find it extremely difficult to cope with their newfound freedom.

You Might Run Out of Money

Finally, the biggest problem with early retirement is the risk of running out of money. Even with careful planning and budgeting, it can be difficult to predict how long your savings will last. 

If you plan to retire early, you need to be sure that you have enough of a financial cushion to sustain your lifestyle for the long term. Additionally, you should factor in potential inflation and increases in the cost of living.


That concludes this post on the 14 pros and cons of early retirement. As you can see, early retirement isn’t all it’s cracked up to be. While the benefits could be amazing and rewarding, the downsides are definitely worth paying close attention to.

If you plan on retiring early, you must ensure you have the finances to support yourself and your family, as the last thing you want is to become someone else’s financial burden. 

Author Bio

Erik Bergman co-founded Catena Media and helped grow it to over 300 employees and a $200 million valuation before stepping away to start Great.com, an iGaming organization that donates 100% of its profits to environmental charities. In addition to running a successful online business, Erik also hosts the Becoming Great podcast, shares entrepreneurship tips with his more than 1 million social media followers, and contributes to sites like Entrepreneuer.com, Business Insider, Foundr, and Forbes.

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