The Retirement Newsletter: Does retiring early take courage?
Issue Number: 179 (32) — what are the issues?
Welcome
Welcome to issue 179 (32).
A few weeks ago, I was chatting with a friend of a friend at a party, and I told them I had recently retired and that I had retired early. Their response surprised me. They said I was brave (I’ve been accused of that before) and that they didn’t have the courage to retire early. But does it take courage?
What is Early Retirement?
If you look at retirement ages by country, you can see a wide range worldwide (see Wikipedia: Retirement Age). The retirement age is country-dependent and tends to fall between 60 and 70. For example, in the UK, it is 67 for men, which is when you can start to take your State Pension. So, anyone in the UK who retires before they are 67 has retired early. But why would someone think it takes courage?
Does Retiring Early Take Courage?
Retiring early is often seen as the ultimate dream. You get to leave behind the daily grind and have the time to enjoy life and your hobbies and passions. You no longer have to contend with the daily commute and the constraints of a 9-to-5 job.
This all sounds ideal; after all, who doesn’t want the freedom that retirement seems to offer?
Why would it take courage to retire?
When I retired, I was ready. I had been working to that point for decades. I was, I think, prepared. But looking back, I can see four levels of ‘bravery’ (for the lack of a better word) required:
Financial
Stepping away
Social
The unknown
The Financial Courage to Retire Early
Money was always on my mind when I considered retirement. My biggest fear was not having enough money.
The start of my retirement savings journey was tough, and I didn’t give it much thought for the first few years. I was on a good pension scheme, retirement was decades away, and I just went along with things. My pension was on automatic.
That changed 25 years ago — I decided to maximise my pension savings. I had a strategy, admittedly a rather strange strategy (I might tell you about it in a later newsletter), and I went for it. However, it took discipline, commitment, and time.
So, what are issues that require financial courage?
Sacrificing Now for Later: To retire early, you need to maximise your savings because retiring early takes more money — you have to bridge the gap until the State Pension kicks in, assuming you get a State Pension.
To do this means making sacrifices and resisting societal pressures to have the latest and best of everything. Also, you may need to opt out of lavish holidays, expensive cars, or a bigger home (I opted out of the car and the big house). It takes courage, especially when everyone around you indulges in those luxuries.Fear of Running Out of Money: No matter how good your financial plan is, you may fear outliving your pension pots. Investments might fluctuate, and there are always those unplanned expenses. This has been and is a significant worry for me.
Quitting the Job: My job represented more than a monthly salary; it offered stability, purpose, and structure. My job defined me, and I was worried about walking away from this security. It was not just about the money but about the leap into a world where my future was no longer tied to an employer.
The Psychological Courage to Step Away
In addition to the money issues, there was a psychological element to retiring early. It was not just about “what am I retiring from,” but “what am I retiring to?”
Redefining My Identity: I derived much of my identity from my career — I was a scientist and an educator. Retiring early required me to walk away from that definition of who I am. I was no longer identified by my job title but by what I chose to do in the next phase of my life. I found this to be both liberating and terrifying.
As it turns out, I am still a scientist and an educator. The difference now is I don’t get paid for it, and I determine the science I do and what I teach.FOMO (The Fear of Missing Out): Productivity and career achievements are highly prized, so retiring early meant stepping out of the race. It meant I had accepted where I was and what I had achieved. The fear of being left behind or losing relevance was a concern, but I decided to focus on my path, not what society says I should be doing.
Managing Time and Fulfilment: Retiring early frees up time but also requires you to fill that time meaningfully. Many early retirees ask, “What do I do now?” The freedom to pursue hobbies, travel, or spend time with family is incredible, but it can also be overwhelming. I knew I would have no problem filling my time. As most retirees will say, I am busier now than when I had a job.
The Social Courage to Break the Norm
Society generally operates on a well-defined timeline: born, study, work, retire, rest, drop dead. Stepping away from this societal norm can be viewed with scepticism and judgment for breaking the traditional path.
Facing Criticism: Some people think retiring early is irresponsible, especially those who equate long working years with responsibility or maturity. They may question your choices or assume you’re financially reckless. I have encountered some of these naysayers, and I ignore them. (I will confess to winding them up by saying, “Retirement is fantastic, I love it, you should give it a go”.)
Explaining Your Choice: Friends, family, and peers might not understand why you’ve chosen to retire early. I needed to explain that it’s not about escaping work but about living my life as I wanted. It was all part of a plan I had made many years ago.
Navigating Relationships: When you retire early, your lifestyle may no longer align with that of your working friends. Your availability for social activities might shift, or you may have less in common with your peers. Adjusting to these dynamics took time, as I had to navigate maintaining or redefining relationships in this new phase of life. But I got there.
The Courage to Embrace the Unknown
Early retirement is filled with uncertainty. I certainly experienced it. I found it important to embrace the unknown and the change and live with a new and clearly defined roadmap.
Unpredictable Futures : Life can be unpredictable. Health issues, market crashes, or family crises can disrupt even the most carefully laid plans. As an early retiree I found I needed to be adaptable, resourceful, and resilient.
Letting Go of Control: I had a structured routine and predictable income while working. Admittedly, the routine disappeared when COVID-19 came along, and retiring early meant letting go of that control, that routine. I had to trust in my plans, my investments, and the choices I had made. This can be scary, but it’s part of the adventure.
Oddly, even though I am now retired, my daily routine hasn’t changed much. The time points (getting up, breakfast, lunch, etc.) have remained the same. The big difference is I now dictate what I do and when.
Final Reflections
Retiring early isn’t for everyone. It requires careful planning and financial discipline.
Now that I think about it, it does take a little courage to step away from the conventional life script, live intentionally, and embrace the freedom — and the challenges — that come with it. I still clearly remember the fear and the doubt I experienced the night before I met my boss to tell her I was retiring. And, as I left her office, what I can only describe as a wave of relief and happiness washed over me. I knew I had made the right decision.
So, does retiring early take courage? Yes. It’s not just a financial decision; it’s a psychological, social, and personal leap into a new way of life. However, with careful planning, early retirement doesn’t take that much courage because it is not the big, scary leap into the unknown that some people think it is.
Are you ready to take the leap? Please let me know in the comments.
This week in the Retirement Hustle
This week in The Retirement Side Hustle, I looked at recording a fully scripted video.
In the video, I look at my process, from the mind map to the script and on to shooting the video. I also cover the equipment I use in the process.
The Retirement Side Hustle Newsletter is subscription-based. However, each video comes with a free minute or so to confirm the content, and if you subscribe for free, you get full access to one edition.
Travel — Nostalgia Corner
This week, I start wrapping up my time in Laos:
Laos — A circular walk from Ban Xieng Man, Luang Prabang (ຫລວງພະບາງ/ຫຼວງພະບາງ), Laos — This was a long hot walk, and I was foolish to attempt it.
Laos — Wat Xieng Thong (ວັດຊຽງທອງ), Luang Prabang (ຫລວງພະບາງ/ຫຼວງພະບາງ), Laos — An impressive temple in Luang Prabang.
Laos — Sunset over the Mekong, Luang Prabang (ຫລວງພະບາງ/ຫຼວງພະບາງ), Laos — Time for a beer.
Laos — Tamarind Restaurant, Luang Prabang (ຫລວງພະບາງ/ຫຼວງພະບາງ), Laos — my last dinner in Laos.
Next week, I will wrap up my time in Laos and start my journey to Thailand.
Next week
Next week, in issue 180, I do my annual nag about the flu and COVID-19 jabs.
Thanks
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Until next time,
Nick
PS: If you would like to contribute something to the newsletter — a story, advice, or anything else — please get in touch.
Please note: I am not a financial advisor. When I write about money and financial matters, I base my opinions on what I have read over the years about money and retirement preparation. IT IS NOT FINANCIAL ADVICE.
Great piece, Nick. This post totally resonates with me.