Americans are living longer these days, so retiring in your 60s could easily mean having another 20+ years where you don’t have to hold down a job. Still, some people would rather stop working in their 50s.
At that stage of life, you might have more energy to do things like travel and pursue different hobbies. And if you save well through your career, retiring in your 50s might seem doable.
But retiring during your 50s can also pose some challenges. Here are a few pitfalls you might encounter:
1. You may not be able to access your savings without penalty
Money that’s kept in an IRA or 401(k) plan can be withdrawn penalty-free once you reach the age of 59 1/2. But if you want to retire earlier in your 50s, you’ll generally face a 10% penalty for tapping your IRA or 401(k) prematurely.
add a comment
