When it comes to office jobs or white-collar roles as they are sometimes referred to, the idea is that early retirement should be more accessible than in a blue-collar profession. Ultimately, the belief is that people in an office earn more than your typical white-van-man, and consequently they are in a better position to consider early retirement plans and even to act upon them. The truth is somewhat different. In fact, if you work in an office, you might find it sometimes more difficult to plan for your retirement than someone whose career involves more physical activities. The reality of early retirement is not yet a golden path for most office employees. Here’s why:
Everybody’s reality is different
While there is a dream to be able to retire at an early age because you’ve saved enough money throughout your life, in fact, it’s fair to say that everyone experiences a different professional path. For a lot of people, early retirement is impossible because they’ve built a family or would be struggling to pay back their loans. Indeed, the number one reason why early retirement doesn’t work for many white-collar employees is the cost of living. You can’t decently consider quitting your job when you need to support your family and ensure your kids will be safe. But, if retirement isn’t an option now, you can look for alternatives to build up your retirement capital.
Temptation can push you to make bad decisions
The main obstacle to early retirement is money. And that’s precisely why many office workers are ready to take risks in the hope of aggregating the necessary capital to make their dream come true. Investment portfolios are a typical solution, but without expert guidance, you can make costly mistakes which can lead you to risky solutions. You could fall victim to a scam similar to the famous Ponzi Scheme where Charles Ponzi took advantage of the eagerness of people to increase their revenues through investments. In fact, not all white-collar crimes such as the Ponzi’s scheme arise out of malice. Some as you can learn more here – can be the genuine result of a mistake or poor advice. And it’s essential to protect your rights during the investigation.
You have the opportunity to stay active longer
The majority of white-collar jobs are accessible to older workers, especially if the job implies cognitive abilities such as language or math. For many employees, early retirement puts mind skills at risk as there’s a natural fear of losing your abilities once you stop using them.
Retiring yes, but staying useful
Aside from deskilling, the major worry about early retirement is that you stop making a difference. Countless workers think of retirement as a period of uselessness – they want to remain useful to the society. The example of Bill Gates comes to mind, as when he retired from Microsoft, he chose to embrace a new challenge with the Gates Foundation. The idea is that retiring from your job is okay, as long as you find something meaningful to replace your 9-to-5 routine.
Is early retirement the right solution for you? Nobody can decide on your behalf. However, you need to consider your mental health and your sense of personal achievement on top of the inherent financial risks of retirement capital.
