EARLY VS REGULAR RETIREMENT – Decide with a proper investment plan

As you approach your peak working years, you will begin to ask yourself when is the best time to retire?


Deciding when to retire is a difficult, yet very important decision to make as an individual. In this article we will look at two distinct time zones for retiring, examine the pros and cons of each decision. We will also look at the best investment planning tools for each time frame that will enable you live a comfortable life while in retirement.


Taking into consideration that retirement means withdrawal from a traditional place of employment, we will use the following accepted time-frames to illustrate the best time for you to retire.



We can define early retirement as leaving active service before the government approved age for retirement. For women it is generally 60 -65 years and for men it’s between 65 -70 years. So if you choose early retirement it will mean you will be leaving work behind between the ages 50 to 55.



The biggest benefit of retiring early is that you will have time to pursue your hobbies and dreams and enjoy the fruits of your labour. Even at 55 you would easily have put in 30 hard -working years or even more. It will be a relief to relax and get away from the stress of office life.



There is a downside to this however, which includes the following:

  • Retiring early means having less time to accumulate retirement benefits.
  • You will have to increase your monthly and annual savings
  • Your income will have to last longer
  • You may not be able to access your retirement fund until the official retirement age.
  • Retiring early also means you will have to pay for your medical and health insurance from your income.


In summary, the biggest challenge is unless you have won the lottery or have some money stashed away in your bottombox somewhere, you will need more money in your retirement account and there is a shorter time frame to put it there.


Investing Early

Early financial planning in your career is perhaps the single most effective way to ensure an early retirement. If you are planning to leave the workforce early then you should consider increasing your personal pension accounts as well as the official one. A word or two with your finance or HR officer at work will help. Also, it means having an aggressive personal savings plan, mutual funds or real estate investments.



Regular retirement or retiring on time will be from the ages between 60 to 67 years. This is the age that you generally qualify to receive your full pension benefits.



The most important benefit of retiring on time is that it allows you to have a full and rewarding retirement. This is because you have had more time to create a substantial retirement fund.

Putting aside money for retirement will be less stressful as you will have the power of compounding interest to grow your funds.



The biggest drawback for retiring on time will probably be not having the opportunity to pursue a potentially rewarding second career.


Investing on Time

Retiring on time means you must have invested enough to be able to meet your obligations and live the retired life you want. This means you should be able to live comfortably off the income generated from your investments and savings. Good financial planning options are varied, from a good pension fund plan to having a robust monthly or annual savings plan or investing in mutual funds that will keep growing to outpace inflation.


Retiring from work is a very personal matter. It is a decision that can have a long lasting effect on your quality of life. So it‘s really important to consider the pros and cons using all the investment tools at your disposal.


For the right financial strategies and advice that will work for you, call our KISS agents on 0800-MERISTEM. They will be more than willing to help you.



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