Sometimes things are beyond our control and go wrong even when we have done our best and given all that we have. One usually faces this when one is lagging behind in terms of performance in comparison to others or is going through continuous health problems that are affecting his or her output. The plan that you had was; to work for five more years and then spend time with your family as money won’t be much of a problem at that time but unfortunately, corporate downsizing has deemed you as surplus to the current requirements.
You are aware of the fact that if you appear for fresh interviews, the corporations will be skeptical of hiring you as you are not looking to grow but looking to secure payment for the remaining years. Usually, organizations prefer to hire employees who are young, energetic and ambitious. They are always looking to get more value for their money. However, an early retirement is not that big a problem. It’s not as bad as you think it is. So what if you have retired earlier than you thought. You need to have a clear understanding of your current position and how it will play out in the coming years.
#1. Do A Full Asset Valuation
How much money do you have in the bank? How quickly can you liquidate a property that produces cash flow? If your answers to these questions are affirmative, then your situation is much better than you consider it to be. All of us want to be financially secure. The older we get, the more we worry as we come face to face with the feeling that our age of working ambitiously and making quick bucks is gone. Most of the organizations, be it private or public operate with a set of terms which make age an issue for the workers. Therefore, it is always better to analyze your current position by evaluating your current assets.
#2. Evaluate Your Liabilities
It won’t take you a lot of time to assess what you owe and where your money goes every month. Although it is difficult to cut the essential expenses, you can always keep track of the money that is being spent unnecessarily. Whether it is the money, you have borrowed from someone, or have spent in buying the luxury car that you can't afford anymore. Just keep track of all these expenses and spend your money wisely. Avoid squandering your money on expensive items.
#3. Arrange A Meeting With A Financial Planner
A financial planner is a person who can help you move closer to your retirement goals even when you have retired early. They help you with advice on investment, tax, and insurance and discuss the implications of taking monetary actions. It is always a good idea to consult with a financial planner as he or she can help you to prevent making financial disasters.
#4. Fill Income Gaps
Income gaps will obviously bug you as your lifestyle has changed. You can no longer go to the high-end restaurant you fancied and enjoyed and have to go to a low priced restaurant. Spending all your time doing nothing and just acting like a senile person out of fear can take a toll on you. It can make you feel that you are challenged by an obstacle that you cannot destroy and end up destroying yourself. When you seek work, you will find rest and no longer feel the turmoil of not bringing in the same money you used to bring. Working part-time as a consultant because you have years of experience in that particular field or beginning anew in a different field is a sure way of smiling over what happened instead of crying that it is over.
#5. Tap Retirement Benefits
You never thought you will rely on the government for financial support as you were a strong worker. Money changes all the iron rules into rubber bands. If you retired because of an illness then you will be eligible for disability benefits. One can always avail different retirement benefits offered by the government.
#6. Put Your Possessions To Use
You can rent your place for a while and stay with a relative who lives alone. Rent your car to teenagers who need one to travel back and forth between the university and research center. This will help you make money and you can always put things that you do not use anymore. This will help to generate some more income for you.
#7. Stretch Your Budget
You don’t need to compromise on your retirement goals even if you have been forced to retire early. This can only be achieved when you stretch your budget and avoid unnecessary things. When you stop going to work, a lot of expenses automatically decrease. You can use that extra cash for necessities and your money will last longer.
#8. Review Health Insurance Options
No matter how healthy you are, you cannot annul your health insurance. An unexpected trip to the hospital will eat your finances faster than you think. You can change your current health insurance plans and pick up the one which does not cost a lot but offers many benefits.
#9. Do Not Borrow
If you have retired early, accept it and try to seek other ways of making money instead of borrowing from other people. There is no good in creating debts. All you need to do is calm down and be mindful of your spending and make do with what you have.
#10. Cherish Your Freedom
Getting fired from a job can be a cause of the stress-inducing behavior. If you have retired early, then you should be very careful that you do not undergo unnecessary stress.
Life is all about embracing whatever comes to you most gracefully. It depends you on your perception towards life. Money cannot stop you from having positive relationships and spending more time with people; you can also visit people you have not seen in a long time and engage yourself in some hobby.
Tell us how you handled an unexpected early retirement. Comment in the comment section below. We look forward to your replies.