Retirement has only been around for 80 years. The trends and issues associated with it are still revealing themselves. While retiring "on time" is a struggle for many, there are those of you seeking early retirement or financial independence. Retiring prior to 65 is entirely possible, yet it comes with its own issues.
If you attempt to retire prior to 65, when you are eligible for Medicare, healthcare will be your biggest obstacle. The cost of healthcare has changed radically in the last few years. You can expect to pay $1,200-$1,800 a month for adequate healthcare coverage prior to age 65. Does your early retirement plan include an extra $20,000 a year? An early retirement plan without a plan for healthcare, isn't a retirement plan.
Another factor to consider is length of life. Retiring in your 50s is exciting, but can your funds last you 50 years? I can't emphasize enough how bad it is to run out of money in retirement. An "unsuccessful" retirement is terrifying.
Other roadblocks, like the cost of college for your kids and upgrading to a larger home, will trip you up getting to an early retirement. But even those of you who make it to an early retirement, may struggle to make it last. Preparing for the cost of healthcare and having a plan to keep your funds last for a long life are two of the best ways to sustain an early retirement.
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