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Early Retirement

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Early retirement occurs when an individual retires before the required or generally accepted age, usually 65 or 67. Early retirement is possible for those who have saved up a large-enough nest egg or who have come into a large sum of money. Early retirement is among the most common reasons for investing. Those who have attained early retirement must rely on income from their investments, as Social Security will pay little, if anything, to anyone who is able-bodied during early retirement. Full pensions are also not usually allowed for those in early retirement. It is common to have to continue paying taxes on one's income during early retirement, though this depends on the nature of one's retirement accounts. Anyone in early retirement is usually advised to know the future of his or her income stream, as it may last up to forty years.

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