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PostSweethoney on 2nd November 2012, 4:16 pm

From my years of interactions with employees of different ministries, Departments and Agencies in the public sectors. They have their reasons to retire early to mention but just four.
The most common reasons that people opt to take their social security benefits early include:
• It is the only way they can afford to retire
• They have a short life expectancy
• They money by investing it themselves.
• They want to get something goes the system before it goes bankrupt (i.e. were in the private sectors).

They are pitfalls to early retirement and is also applicable to late retirement if not planned properly.
Outliving your rest egg: It is good to note that creating a subsumable stream from your retirement portfolio is very difficult, since you can’t predict your life expectancy. But with good diets, regular exercise, having good time with friends, family or relatives etc.
However, the question, if my retirement benefits will last 15,20,30 years or more? Is uncertain to any retire and the fund managers. At this point it is necessary for a retire to calculate how much he/she is to take as lump sum or during monthly or quarterly withdrawals. Always note that, the higher the lump sum withdrawals by you, the lower the monthly or quarterly pension withdrawals and vice versa.
Similarly, the less money you take out of your RSA, the lower the inflation, the lower your investments costs, and the higher the rate of investments returns on your fund, the longer your nest egg will last.
Conversely, the higher your withdrawal, the higher the inflation, the higher the investment costs and inflation, the higher the investment costs and the lower the rate of investment returns, likewise the shorter your rest egg will last. It has to grow with inflation, as people seems to have a longer life expectancy, what supports you at the age of 60 or 65 will not be adequate at 80.
• Trustworthy investment advisor
• It may be difficult of finding a trustworthy investment advisor, who will then link you to and area of better investment returns.
• The burden on taxes
• So many retirees after their final exit from active service do hope that most investments returns made in financial sectors will be high especially of fixed income investment but sees opposite where you must have to pay taxe on interest an a certificate of Deposit (CD) made, thereby reducing the total expectations of the retire. Kindly contact your financial adviser on this for more details.

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