Major medical insurance
Early retirement seems to be a goal of many people in the work force today. In years past the number of years you put into a company was greatly valued, this is not the case today. There are some companies that look at a person with longevity and they begin to question their out put. Instead of seeing a long term worker as being loyal and reliable they are looked at as lazy and unmotivated. Today the trend is to move jobs at least every five years. All these moves can mean signing bonuses and other monetary incentives; however it may mean disaster for the retirement account.
There are several factors that determine when you will be able to retire. One is investments that you have made through the years. It is so important to start some type of account that you add to on a consistent basis. The earlier you start doing this the better. When I started my first job a banker advised me to pay my savings account every pay check the same way you would pay a bill. Each month you write a check and send it to the bank as a deposit into the savings account. Another factor and the most expensive is if you have major medical insurance. Insurance cover age is important in general, but as we grow older we begin to develop aliments and other health related issues. Medicare only pays a portion of health care costs so you need to have a supplemental policy. If you do not have major medical insurance you are gambling with your savings.
The premiums for major medical insurance are quite expensive. Some companies will allow you to remain on their major medical insurance so that you can purchase the coverage for the group rate. This is a great benefit and is often used to get a person to retire early. Companies like to get people to retire early so they can save on salary expenses, vacation amounts and higher insurance premiums.
Other factors to consider when looking into early retirement are how much debt you have. It becomes difficult to keep up with a mortgage payment on a fixed income. Another factor that many people over look is what your plans are to fill your days. It is important to have a part time job or community service that can fill some of your time so you feel useful and are productive. Some people that do not have some way of filling their time may get depressed. This may lead to the need for medications and treatment, which adds to the cost for your major medical insurance.