5 Reasons Never To Retire Early Even If You’re Rich

Many people dream of retiring early, but not everyone is as prepared as they think they are. Even if you’re well-off and can financially support yourself after leaving the workforce, that doesn’t necessarily mean you should retire.

There are quite a few other benefits to working longer that you might not get once you put in your final notice.

“Even if you’re financially secure, there are strong reasons to consider delaying retirement,” said Sean Lovison, CFP, CPA and the founder of Purpose Built Financial Services, LLC.

One of the big ones is passion.

“Many people are deeply passionate about their work,” Lovison said. “It’s not just about the money; it’s about the satisfaction, growth and connections that come with a fulfilling career.”

If you truly enjoy your job, leaving it for an early retirement could make you less happy or less fulfilled. This isn’t always the case, of course, but it’s worth considering before making the leap.

Continuing to work longer, even if it’s just until the typical retirement age — 63 for women and 65 for men — can also be a good way of setting an example for others, especially your kids.

“If you have children at home, continuing to work sets a powerful example,” Lovison said. “It shows them that hard work, dedication and lifelong learning are valuable, even when you don’t have to work for financial reasons. This can help instill a strong work ethic and a healthy perspective on the role of a career in a fulfilling life.”

Not everyone’s work gives them purpose, but if yours does, then leaving it behind might not be the best decision.

“If money is the only reason you’re going to work then you haven’t necessarily found your joy. When you’re doing a job you love doing that’s where the best of you comes out,” said Craig Goodliffe, the CEO and founder of Cyberbacker. “Working for purpose is far more fulfilling than working for money … You should always pick a career that gives you purpose, fulfillment and joy.”

Financial readiness is one thing, but are you emotionally and mentally prepared? If not, you might want to hold on retiring.

“I don’t believe there is enough emphasis placed on the fact that people should mentally prepare themselves, as much as financially, for retirement. Retiring early, even for those who are financially secure, can lead to a loss of purpose and identity, as many individuals derive significant meaning from their careers,” said Gloria Garcia Cisneros, CFP®, wealth manager at LourdMurray.

“Just as you should plan how you will fund retirement, there should be months, if not years of planning and adjusting to how you will spend your time in retirement,” Cisneros continued. “Many retirees find themselves feeling bored or restless without the structure that a job provides. I would encourage people considering retirement, especially at a younger age, to be sure to consider the cognitive stimulation and social circles that a workplace provides and find ways to keep this alive in retirement.”

Being rich is somewhat relative. How much you need to sustain a comfortable retirement in, say, Missouri is likely going to be much less than what you’ll need in California or D.C. Depending on your circumstances, you might also need more money than you expected.

If you have any financial concerns at all, even if they end up being unfounded, you might want to hold off on retirement — even if just for a few more years.

“Early retirement poses financial risks, including the need for a longer savings period to sustain a potentially lengthy retirement,” Cisneros said. “If there is a tough couple of years when you initially want to stop working, this could be a consideration to take into account.”

By continuing to work, provided you’re happy with what you do, you can build a bit more financial security while you’re still earning a high salary. Then, if something does come up later in your life, you’ll be well prepared to face it.

Ultimately, when you decide to retire is up to you. If you’re already wealthy, you might be financially ready to retire. But be sure to make your decision based on your overall needs and wants. You might find more benefits to working a bit longer than you expected.

“In the end, working even when you don’t need to is about finding joy and purpose in what you do and passing those values on to the next generation,” Lovison said.

If possible, retire when you’re ready on all fronts. That way, you’ll have no regrets about your decision — whether they’re emotional, financial or otherwise.