What is another word for "early retirement"? (2024)

FAQs

What is another word for "early retirement"? ›

What Does FIRE Really Mean? The acronym FIRE stands for Financial Independence, Retire Early. It's a movement that prioritizes cutting expenses, saving, and investing with the goal of retiring early or gaining more financial freedom.

What Does FIRE Really Mean? The acronym FIRE stands for Financial Independence, Retire Early. It's a movement that prioritizes cutting expenses, saving, and investing with the goal of retiring early or gaining more financial freedom.

In the first stage of retirement, while your health is good and you have goals to accomplish, you might travel the world, learn new skills, volunteer and take up new hobbies. Move to a new locale and/or purchase a second home. Perhaps even start a new business or work part-time.

The common definition of early retirement is any age before 65 — that's when you may qualify for Medicare benefits. Currently, men retire at an average age of 64, while for women the average retirement age is 62.

Some people have tried to change the word itself. Jim Gambone, a Minnesota-based intergenerational specialist, suggests replacing retirement with "refirement." In his book, "ReFirement: A Boomer's Guide to Life After 50," he provides an optimistic vision for how to live meaningfully during the "third age."

Depending on when you were born, retiring at 66 could be considered “early.” A more strict definition of early retirement would be retiring before age 62, which is the age when you first qualify for (reduced) Social Security benefits. Another way the government defines early retirement is through Medicare eligibility.

The 4% rule says people should withdraw 4% of their retirement funds in the first year after retiring and take that dollar amount, adjusted for inflation, every year after. The rule seeks to establish a steady and safe income stream that will meet a retiree's current and future financial needs.

At what age do you get 100% of your Social Security? ›

The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67.

December is often selected as a favored month for retirement due to several reasons: Year-End Financial Planning: Retiring at the end of the year allows you to maximize your retirement contributions and take full advantage of any employer-matched funds for that year.