The cons of early retirement include: Years of no income.A potential health insurance crunch.A loss of meaning.
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62 Years OldIf people born after 1960 claim their benefits the month they turn 62, they'll get only 70% of what they would have received had they waited until the full retirement age of 67. The average monthly payment of $1,782 drops by 30% during the first month of eligibility to $1,247.40.
Age 62 is the earliest point at which you can claim Social Security. But if you file at that age, you'll reduce the monthly benefit you're entitled to collect -- potentially for life.
Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years. If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.