Retiring early sounds like a dream—but it comes with financial landmines.

If you’re considering retirement before 65, there are more costs to consider than you might think. Without proper planning, you may face tax penalties, healthcare gaps, and reduced lifetime income.

Let’s break down the true price of retiring early—and how to soften the blow.

Healthcare Before Medicare

Retiring before 65 means you’re on the hook for private health insurance—which can easily exceed $1,000/month. Budgeting for this coverage is critical, and timing COBRA or ACA subsidies correctly can save thousands.

Social Security Penalties

Claiming Social Security before full retirement age (FRA) means reduced monthly benefits for life. Plus, if you go back to work part-time, your benefits may be temporarily withheld.

Longer Retirement = More Risk

The earlier you retire, the more years your money needs to last. That means more pressure on your portfolio to generate income—and more exposure to inflation and market risk.

Strategy: Bridge the Gap Wisely

Rather than jumping into early retirement, consider semi-retirement, consulting, or phased retirement to provide income while maintaining benefits. Use taxable brokerage accounts for income to avoid early withdrawal penalties.

Want to retire early without regrets? Let’s run the numbers together.