Pros of taking early retirement include having extra time to enjoy life with loved ones and getting a longer period of rest following a long life of working a full-time job, according to Jane Bryant Quinn for AARP. However, retiring early keeps the individual from having his full Social Security benefits and he is only able to rely on his personal retirement savings.
In addition to having more time off following early retirement, there is also the benefit of not having to worry about health insurance, says Donna Rosato for Time.com. This used to be a big issue with retiring early, but thanks to the Affordable Care Act, seniors often qualify for Medicare and other discounted health insurance plans. The retiree, regardless of his health conditions when getting the policy, is still eligible for health insurance.
Many of the disadvantages of early retirement have to do with the financial risks, explains Quinn. Some people who retire might still need to work a part-time job or dip into their various retirement accounts early. Retiring before the age that Social Security recommends also gives the retiree less money than he would otherwise earn on a monthly basis.
Some people who retire early have to move to a smaller home and get rid of many of their belongings to afford the new rent or mortgage, according to Rosato. This can be seen as a pro or con depending on the person’s situation and where he wants to live.