FOR decades, retiring at the legal retirement age of 60 years has been considered ideal for one to say goodbye to his/her job. But in recent years, getting a head start on the golden years is sounding juicy without considering one’s situation which may or may not be judicious. 

Many are see retirement or resignation as the gateway to financial freedom, going to an extent of encouraging each other to retire early especially considering the disillusionment caused by the current state of government affairs and the financial stress experienced by many workers. While the issue of early retirement or resignation is an individual’s choice, it is imperative to critically examine the many aspects involved in choosing to leave work before the legal retirement age and the reasons for this choice. The decision should consider two-pronged interpretative key which is desire and necessity. There is nothing wrong for those who have good plans with their finances or for workers in poor health, who suffer from activity limitations and chronic health conditions to take early retirement, but normalising it with a dream of good life is a fallacy as we are observing those who took the same route going through financial distress. 

While it is good for early retirees to use their money to invest it diversely, such as starting their own businesses or making investments that promote economic growth or to open space for younger workers, thereby reducing unemployment rates, the effects it has on the individual, if not prepared, can be disastrous. 

For those with more savings and are well prepared, the idea of stepping away from the workforce earlier can be beneficial. These ones can join the FIRE club, which stands for "financial independence, retire early. But for others who consider it due to stressful working environment or for any desires, an honest self-introspection must be considered as some of their predecessors are going through stress, dying early, suffering and at some extent contemplating suicide or committing it. 

Timing critical 

Whether one is deciding to quit his/ her job at whatever age and for what reasons, the timing of that decision is critical. The preparedness and readiness to take such a decision should take centre stage. While the fantasy of a large payout and lavish life at times can be inveigling one has to be careful and consider the timing of their decision as many are regretting taking that route. 

Remember, money doesn’t last long if one continuously spends it without any other replenishing source of income. Many factors need to be carefully considered with an honest answer about the following: What is early retirement worth to you? What is it worth to your mental and physical health? What does it matter to your balance sheet? It is all a matter of what is best for you and your family. 

Far less dreamy 

When most of us envision early retirement, we think it will be spent pursuing new hobbies, spending more time with family, and travelling the world all in good health, and all with enough spending money to occasionally enjoy a little room service, more leisure time to pursue interests, improved general health and making a fresh start. 

But the reality of it can be far less dreamy as at time it can lead to one outliving his/ her savings, the loss of some benefits, incurring early withdrawal penalties, boredom due to fewer social activities and less time spent challenging the mind, feelings of loneliness, increased risk of cognitive health issues and a loss of meaning in the society. 

Therefore, let the decision be left to the individual to decide what is best for him/her instead of making it normal to go for early retirement or to resign as many are regretting for taking the imitation route. Challenges are part of life and should not force someone to get into situations that might be difficult to reverse. If you’re thinking about retiring early in your 40s, 50s or 55s, you should carefully weigh this life-changing decision. Your current pension benefits after enquiring from the provident fund might look enticing, but consider the long term financial and social implications of that action. 

Evaluate the advantages and disadvantages of early retirement, and then lay out a strategy that’s best for you, don’t just follow the queue. Additionally, be sure that your finances and investments will ensure that you have enough resources to cover your potential longer retirement period and maintain your living standard. Desires for a luxurious life, driving a GD6 bakkie/Fortuner, a Landcruiser or some other fancy vehicle may be catastrophic. 

* Faustinus Shikukutu is a resident of Kavango East region. All views expressed are his own.