Evaluating Your Assets
First, take an inventory of everything you own, such as your home, vehicles, and any other valuable collections like art or jewelry. Also, look at your investment accounts, such as your employer-sponsored 401(k), IRA, and other investment accounts.
Another option if your income has dropped or vanished is to start taking Social Security benefits early at the age of 62. Your Social Security benefits will increase as you approach age 70. If you are in urgent need of money now, take advantage of this opportunity. However, if you can wait, you will receive a larger amount.
It is important to take a look at all your assets – including available cash – to determine if you are financially capable of retiring now and how sustainable your money will be realistically. If you do not have enough money to live comfortably in stability, perhaps for decades, you may need to find additional income from elsewhere.
Talking to a Financial Expert
Consulting a financial planner or advisor about your options is an important step. If you are not sure whether you have a reliable enough income to survive throughout retirement – such as from your retirement and savings accounts, for example – a financial expert can help you understand what you need to do to retire now. For instance, what are your monthly financial obligations? Can you cut costs in certain areas so you only pay for what is absolutely necessary? The expert can help you figure that out.
Certified Financial Planners (CFPs) are helpful, but you can also talk to a tax preparer, financial advisor, or another financial professional.
Downsizing Your Living Space
Sometimes it may be necessary to get rid of large items in your life and adjust to a new income level. If you have extra space, consider selling your home and moving to a smaller house or apartment, or relocating to a cheaper area if possible. The minimum mortgage payment in the United States in 2019 was $1,200, so if you cannot move, consider hosting friends or family members to help reduce housing costs. Even if they contribute a small amount each month, it can lower what you have to pay out of pocket. If you can reduce the amount you spend on housing costs monthly, you may be able to allocate that money elsewhere.
Additionally, if you do not think you will need to leave your home as frequently as you used to, you may want to consider selling a vehicle to eliminate a loan or insurance payment.
You can also sell items you do not need. For example, if you have a car, motorcycle, and boat, you may want to sell the one that is not essential. If you cannot do that, consider sharing usage and payments with a friend or relative.
Note: Downsizing your living space means reducing the money that goes toward your house payment or rent, allowing you to make better use of your money during retirement.
Searching for Part-Time Work
If you cannot find a full-time job in your field, consider part-time work. Whether it is in your industry or not, working part-time can help you get by until other income sources, such as retirement distributions or Social Security benefits, kick in.
If
You were in good health and feeling comfortable, you can also start working in a currently required job, including as a core worker, as companies are actively hiring for those roles during the pandemic. For example, you might consider meal delivery services, Amazon, grocery services, or ride-sharing services. Many of these jobs allow you to work as much as you wish, according to your schedule. Even if you go back to full-time work again, you don’t have to immediately give up your part-time job, especially if you are earning less in the new position than you were earning previously.
Note: If you have a side job you have been doing alongside your full-time job, it may be time to turn it into your new full-time job.
Turning Your Hobby into an Income Source
What do you do when you are not working and want to do more of it? Are you interested in graphic design, building websites, or making crafts for your friends and family? Do you have any caregiving skills, whether for children or seniors, that you can offer to those in need? You can turn your hobby into a side job – or even a full-time job – if you’re looking for an alternative income source. Sites like Fiverr, Etsy, and Care.com can help you achieve that easily.
Note: If you need a little extra income but have already started collecting your Social Security benefits, it’s important to be aware of the amount you can earn annually while collecting Social Security.
Conclusion
If you are facing early retirement before you think you’re ready, take some time to assess your financial situation. If you have enough cash available and can find a side job or downsize your living space, you might be able to live financially longer without returning to work. But if you can’t cover your expenses, you may want to consider looking for a new job and delaying retirement for a few more years if possible.
Source: https://www.thebalancemoney.com/steps-to-take-if-you-re-forced-to-retire-early-5075404
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