"Don't Retire Too Early! Find Out the Top 5 Regrets from Americans Who Left the Workforce Too Soon"

 Early retirement may sound like a dream come true – but, some Americans have experienced the various problems that can arise once that regular paycheck stops.

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In facts, many retirees who left the workforce at a younger age now have regrets. According to research from the American Association of Retired Persons (AARP), more than a quarter of retirees end up finding they have to spend more money on medical and housing costs than they anticipated.

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Early retirement can leave you with less than a nest egg to cover unexpected expenses and rising costs of living.

Here are the five main things many retirees would change if they could go back in time.

1. Claiming Social Security too early

Many people might assume that retirement automatically means dipping into Social Security (SSA). The reality, however, is that you can retire without claiming those benefits if you have enough money set aside to get you through the first few years.

Unfortunately, most people don't -- and many early retirees regret how quickly they claimed their Social Security benefits

Research from the National Bureau of Economic Research (NBER) reveals that one-fifth of older Americans wish they had delayed their Social Security claims. This is understandable, considering that every month you delay claiming benefits can result in an increase in your monthly income.

Delaying your retirement until age 67, for example, could result in a 24% increase in standard Social Security benefits.

Early retirees are even more likely than the average senior to wish they had made different choices, because claiming benefits at age 62 with a full retirement age of 66, for example, can shrink standard benefits by 25%.

With half of the 65+ population relying on retirement benefits to provide at least 50% of their household income, that's a big blow to take.

If you want to find out your estimated benefits before making a decision about early retirement, the SSA has a variety of helpful tools on its website, which can help you understand the full impact of working less than 35 years.

2. Not saving enough before retirement

More than half of respondents to an NBER survey on financial regrets said they wished they had saved more money before retirement. In comparison, another study conducted by MedicareFAQ found this number to be even higher – with 86% wishing they had more money set aside, while 60% admitting they didn't start investing in retirement funds early enough.

For early retirees who have had to rely on their savings for many more years than the average senior, having too little savings can be a serious problem. Running out of money in your 70s or 80s, after decades out of the workforce, is not an easy problem to solve.

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3. Failing to create a health care plan

About three-quarters of retirees report concerns about their health in older age, according to research from the TransAmerica Institute. Additionally, 52% percent of retirees told MedicareFAQ that they wish they had prioritized their health more before retirement.

Unfortunately, early retirees can find themselves in dire financial straits if they fail to plan for health care costs. While it is a common assumption that Medicare will cover most medical needs, this could not be further from the truth.

Fidelity's 2023 Retirement Health Care Cost Estimates reveal that the average senior can expect to out-of-pocket $157,500 (or $315,000 per couple) for health care in retirement, even with Medicare.

Early retirees may face bigger problems than most when it comes to providing health care because Medicare doesn't kick in until age 65. Anyone who leaves the workforce before that time may need to rely on expensive private health insurance without help from an employer to pay premiums.

4. Previous long-term care insurance

Seven in 10 people aged 65 and over will need long-term care in their lifetime, and a Genworth Cost of Care survey reveals a semi-private room in a nursing home can come in at a cost of $8,669 per month, while a room in an assisted living facility averages $5,350 per month.

Looking at those numbers, it's no surprise a MedicareFAQ study revealed that one-third of retirees wish they had purchased long-term care insurance. Unfortunately, the longer you wait to purchase this coverage, the higher the premiums will be.

Buying a policy or paying for a nursing home room later in life may be a big challenge for early retirees who may have exhausted their resources by the time they need that type of care.

5. Leaving the world of work at a young age

Many retirees who leave the workforce before age 62 end up regretting the fact that they retired so soon, for a variety of financial reasons.

About a third of retirees wish they had stayed in the workforce longer, according to the NBER study. Of those surveyed, 52% said they regret not saving enough, while 19% revealed they regret claiming Social Security too early.

Before deciding on early retirement, make sure your finances are in good shape, research how claiming Social Security at different ages will affect your benefit amount, and create a blueprint for how.

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