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What No One Tells You About Early Retirement

Posted February 28, 2023

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Think back to when you entered a new stage of life. Do you remember looking to your spouse, a good friend, or even a parent and saying, “no one told me about this?”

Maybe it happened when you got married, and no one told you that marriage wasn’t how Hollywood depicted it, for better or worse. Perhaps it happened when you first became a parent, and while everyone warned you about the sleepless nights and long days, no one told you about the first time your baby would smile at you. Maybe it happened when you graduated college, moved to a new city, and got your first job; perhaps no one told you about making friends as an adult, how paychecks only go so far, and how hard it would be to balance all that life threw at you.

As you enter into a new stage of life, there are so many things that you wish you would have known before. At Thayer Financial, we want to do everything we can to keep you from saying, “no one told me about this” as you enter into retirement.

Over the years, we have walked with clients from different situations as they prepared for and entered retirement. We’ve not only seen this through our clients’ experiences but also studied it, immersed ourselves in it, and dedicated ourselves to finding the best solutions for our clients.

We could say so much on the subject, and we’d love to schedule an appointment to discuss your questions and concerns. But in the meantime, here are five things that no one tells you about retiring early.

  1. You May Need to Tighten Your Budget

If you plan to retire early, one of the first things you will need to do is figure out approximately how much you will need to have saved before retiring. Remember, you may still have a long, long life ahead of you, and your mortgage, healthcare, and other living expenses don’t retire when you do. Additionally, you may have to pay an extra penalty if you withdraw from your 401(k) or IRA before you turn 59 ½. Finally, don’t forget to kiss compound interest goodbye. Portfolio growth slows down considerably once you start retirement distributions.

  1. You May Need New Friends

One thing you may not expect when you retire early is that you may need new friends. While you’re living a life of leisure, looking to travel, play a round of golf, or spend more time with family, you may realize that you’re spending more time alone. This is because peers of the same age and in the same life stage are still working full-time jobs.

  1. You May Struggle to Find Supplementary Income

Did you know that 74 percent of workers plan to work for pay in retirement? According to the EBRI study, just 27 percent of retirees reported working for pay. (Source: AARP) Finding a job might not be the hard part of earning supplemental income during retirement. Still, the challenging part will be finding a job with a schedule that does not interfere with your other retirement goals, like traveling or spending more time with family. Even part-time work often requires employees to adhere to a schedule that can make travel and leisure more challenging to plan and enjoy.

  1. You May Find New Hobbies & Passions

For the past 20+ years, you’ve worked at least 40 hours a week. Now, you have at least 40 hours of empty time that you didn’t have before. Knowing how you will spend your free time in retirement is one of the first things you should consider when planning for retirement, early or not. In your free time, you may pick up a new hobby, find an undiscovered passion, or work on those projects you always wanted to do but never had the time to do it.

  1. You Don’t Have to Figure This Out Alone

Finally, one of the most important things you need to know, and no one tells you about in early retirement, is that you don’t have to do this alone. It can feel like you made a drastic mistake, like you don’t know how to manage your finances, or you get bored way sooner than you thought. These are all normal reactions, and feeling this way is okay. Your friends, family, and the team at Thayer Financial are all here to help you enjoy your retirement and live it to the fullest.

Want to know more about how to plan for your retirement, what this stage of life will be like, and more about what no one tells you regarding your finances, retirement, business transitions, or estate planning? Our team at Thayer Financial would love to speak with you about all these life stages and more.

Visit our website today to schedule an appointment and talk with our team.


Thayer Financial, L.L.C. (“Thayer Financial”) is a registered investment adviser offering advisory services in the States of North Carolina, Tennessee, Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This website’s presence on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Thayer Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or according to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Thayer Financial, L.L.C., unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.


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