Retiring early is a dream that many people have, whether it is the FIRE movement that has gained popularity over the recent years that has people retiring in their 30s and 40s or it’s just a desire to retire in your mid 50s after decades of working. The reality is that it may not be the best decision for everyone. In this video, we will explore recent studies that talk about a HUGE risk that can come with retiring early that most people overlook.Many people do not plan for their physical and mental health in retirement. Studies have shown that early retirement can lead to cognitive decline, dementia and put people at a higher risk of developing chronic health conditions.

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Retiring early is a dream that many people have, whether it is the FIRE movement that has gained popularity over the recent years that has people retiring in their 30s and 40s or it’s just a desire to retire in your mid 50s after decades of working. The reality is that it may not be the best decision for everyone. In this video, we will explore recent studies that talk about a HUGE risk that can come with retiring early that most people overlook.

Hey everyone, I’m Johnathan Rankin, the Founder and CEO of Theorem Wealth Management, a firm dedicated to retirement planning.

Early retirement sounds great in theory. The thought have having the financial freedom to not have to wake up and work every day along with the free time to spend your days how you want sounds amazing. It takes a lot of hard work to retire comfortably at a normal age, let alone retiring early. Of course there are financial risks that come with retiring early. The money you save has to last a lot longer than a traditional retirement and you’ll have longer to wait before receiving social security or medicare benefits.

For those that plan on retiring early, they typically understand the financial risks, but there is one big risk that comes with early retirement that most people over look; that is the negative impacts on your health, both physical and mental.

A recent study by Binghamton University revealed that adults who retire early may be at a higher risk of cognitive decline compared to those who continue working.

The research focused on government heath data from a pension program introduced in China in 2009. researchers were able to compare the health and cognitive consequences of those that retired early with a matched group of people still working through their 60s. what they found was those participating in the early retirement program showed a worsening of cognitive skills over the subsequent years compared to non-retirees. Another study published in the journal "Neuroscience & Biobehavioral Reviews," has found similar results. The study analyzed data from over 15,000 participants in the United States. The researchers found that participants who retired at age 62 or earlier had a greater decline in cognitive function over a four-year period, compared to those who retired at a later age. On top of that, the effects of early retirement on cognitive function were more pronounced in men than in women.

But It’s not just cognitive decline and dementia. A study published in the Journal of Aging and Health found that early retirement is associated with an increased risk of developing depression and anxiety. The study, which included over 5,000 participants, found that those who retired before the age of 60 had a higher risk of developing depression and anxiety compared to those who continued working.

And It's not just the mental health that can be impacted, let's look at the physical health effects of early retirement. A study published in the Journal of Occupational Health Psychology found that early retirement is associated with an increased risk of developing chronic health conditions such as heart disease and diabetes. The study, which included over 6,000 participants, found that those who retired before the age of 60 had a higher risk of developing chronic health conditions compared to those who continued working. Other studies have found that those who retired before the age of 60 had a higher risk of dying from cancer and other diseases compared to those who continued working.

So does all of this mean that retiring early is going to lead to your mental and physical deterioration? Not at all, these studies suggest a correlation, not a cause and effect.

What can you do to avoid being one of these statistics? Researchers have theories about why health may decline and there are 3 main factors that contribute to it.

The first is Physical activity, People also tend to be less active and have fewer opportunities for physical activity. This lack of physical activity can lead to poor physical health over time.

The second is a sense of purpose. early retirement can lead to a loss of purpose and meaning in life. For a lot of people, their career was their identity and it gave them a sense of fulfillment. Losing that can lead to feelings of depression and anxiety,

And the last factor that researchers believe contributes to health decline is the lack of social and intellectual stimulation. When people retire, they tend to have less social interaction and fewer opportunities for learning and mental stimulation. This lack of stimulation can lead to a decline in cognitive function over time.

So, what does this mean for those considering early retirement? I’m not trying to burst your bubble and say that you shouldn’t retire early. The idea of retiring early can be extremely exciting. But With everything, it is important to consider the potential downsides and most people only focus on the financial aspect of retirement. The accomplishment alone of becoming financially secure enough to retire early can be very rewarding because not many people can do that. But early retirement can’t just be about the money. It is important to also have a plan in place for emotional, mental, physical and social aspects of retirement. So before you tell your boss you quit, just make sure you’ve thought through it all. And if you are thinking about retiring soon, make sure you check out this video where I talk about the 5 worst things you can do after you retire, I’ll see you there.

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