Early Retirement is not an option unless….

What started as a lively game night filled with laughter and camaraderie took an unexpected turn as Enoh and Mimi's group of long time friends delved into heartfelt discussions about the fear of retiring to nothing. For them, the most scary part, was the unsettling acknowledgement that depression is a real possibility, when all of sudden your established and familiar routine as a contributing member of society is no more.

A lot of us are accustomed to working for a good part of our adult lives until we are old and grey and operating with the mindset that we have so many years before retirement.

Then life happens.

You begin to recall stories of some other people of how things didn’t work out as planned, for those who seemed to be doing well during their working years.

Retirement sneaks up like a shadow, nudging you to face the daunting world of finances. Suddenly, numbers become a new language, as baffling as the stock market.

It can be a mix of anxiety and urgency, pushing you to untangle the math maze, and find comfort in understanding your financial future.

But who says we have to wait until we have given our best years to a job, if there is an opportunity to retire early when we are still productive and can engage in other activities?

Maintaining a better standard of living after retirement requires thoughtful planning and adaptation to the different seasons of life.

For someone with financial responsibilities, the approach might differ based on factors such as income, family needs, and long-term goals. It's crucial to save diligently. Experts often recommend saving at least 15-20% of your income for retirement. The earlier you start, the more you benefit from compound interest, which significantly boosts your savings over time.

For the African in North America, contemplating early retirement, the decision to downsize or relocate is significant. There is the option to relocate to a city with family and or to one with favorable weather for support and comfort. There is also the option for some people to return to their homeland which might provide a sense of belonging.

Regardless of your choice, having open conversations with your loved ones about your plans is essential.

There is a new freedom and control over your time which can make early retirement even more appealing. Establish a routine, and pursue meaningful activities. You get more time to pursue hobbies and spend with loved ones. Activities such as volunteering, joining clubs, or taking classes can keep you active and socially connected.

Here is a checklist to help you prepare for and minimize the uncertainties of Early retirement, especially for Africans living in the North America diaspora:

Financial Planning: Start by reviewing your finances. You want to begin to understand what your monthly expenses look like to determine how much to realistically have in savings. For example, some suggest saving 25 times their monthly expenses is a good starting point. Finally, no more excuses to prevent you from enjoying the “fruits of many years of labor”, that is your Social Security benefits. In the United States of America, one can start receiving Social Security benefits as early as age 62, but your benefit amount will be less than if you wait until your full retirement age. For example, if your full retirement age is 67, you'll receive 70% of your benefit if you claim at age 62. If you delay receiving your retirement benefit past your full retirement age, your benefit can increase by up to 8% a year until you reach age 70. Consider consulting a financial advisor to ensure you have a solid retirement plan that supports your desired lifestyle,
Downsizing: Evaluate your current home and determine if downsizing is a feasible option. A smaller home can reduce maintenance costs and free up funds for travel and leisure.
Health Care: Research healthcare options in the potential locations you are considering. Ensure access to quality medical care is available, especially as you age. You can enroll in Medicare coverage at age 65, however where you employer is not providing coverage following early retirement, exploring gap insurance options from a private insurance company is recommended. Consider gap measures like a high-deductible health plan paired with a Health Savings Account (HSA) to cover medical expenses until you reach Medicare eligibility. You may also be eligible for Medicare before age 65 if you have a disability,
Open Family Connection: Maintain strong communication with your children and loved ones. Discuss your relocation plans openly to address any concerns and ensure everyone is on the same page. Discuss how you’ll stay connected, whether through visits, video calls, or even relocating closer to them.
Explore Interests: Identify hobbies and activities that excite you. Consider other interests that keep you mentally engaged and fulfilled.
Community Involvement: Be it North America, Africa or elsewhere, find ways to stay active in your community. Volunteering, joining clubs, or participating in local events can provide a sense of purpose and belonging.
Regular Visits: If relocating to your homeland or a different country far away from your loved ones, plan regular visits to North America to stay connected with family and friends. This balance can help ease the transition and make the move feel less daunting. It may also help to visit your country of retirement a few times at different points/seasons before retirement, talk to people on ground who have made the move, to get a feel for the area and what daily living looks and feels like. If possible do a short stint of at least spending 4 to 6 weeks in said country before your final move. This may help you make a more informed decision.
Learn the Language: If you are relocating to a place where they speak a different language and have a different culture, investing in learning the language will pay dividends and make the transition easier.

Early retirement can be a rewarding phase of life if approached with thoughtful planning and open communication. Remember, it's about finding the right balance that works for you and your loved ones.