Did I retire too early? The biggest sign you did is when you know it in your gut. Many people took advantage of the record high asset price increases in 2020 – 2021 and thought the good times last forever! That’s not how it works. The good times last until they don’t.
Many people who retired at the end of 2021 regretted their decisions and eventually went back to work. That’s the worst spot to be in. Going back to work because you have to and not because you want to. It’s not easy to get back to the same compensation level as before.
Life isn’t logical where if you were making $100k, another company is legally obligated to offer you a salary higher than $100k. There are many making $500k+ who are burned out with the corporate culture. So they voluntarily choose to go back down to $80k/year.
That is OK because it was on their terms. However, when you’ve been out of the workforce for so long, you are not as desirable as someone who’s been in the game in the meantime. And you may end up working for a boss 10 years younger than you.
There are clear telltale signs of the answer to did I retire too early? is a resounding yes. It’s not the first time someone made that mistake and it won’t be the last time. Unemployment is great as long as you can fund the unemployment through the decades of uncertainty ahead.
Financial independence is only one side of the equation.
Did I Retire Too Early? 9 Tell-Tale Signs You Did
Did I retire too early? Below are the 9 surefire signs you did. No matter what others say, early retirement isn’t all that it’s cracked out to be.
1) You Know it in Your Gut
This isn’t anything logical. You just know when you made a mistake and you want to go back to the way things were. You just know it in your gut. Did I retire too early? And you confidently answer yes to the question. You have the best picture of your life than anyone else does.
Whenever I take a job I’m not sure about, you just already know in your gut whether or not you made the right decision. Getting over imposter syndrome at new job requires a solid 6 – 12 months before you really feel comfortable.
2022 was the first year at my new job and I feel more confident and comfortable after going through with the year. It takes a while before you’re really comfortable. In the meantime you have companies who just expect you to get it right the first time and you’re juggling so many people’s expectations.
it’s hard to be a new employee at a new company, it’s even harder to be an early retiree if you’ve never gone through it before.
2) Did I Retire Too Early? Yes If You Miss Going Back to a 9-5
One of my friends pursued the entrepreneurship path in his early 20s, selling delicious donuts to customers in South Korea. He put it perfectly. He feels uncertain about his chosen path whereas in a 9-5, there’s much more structure and certainty surrounding your future.
If you miss going back to a 9-5, the answer to did I retire too early? is a yes. A 9-5 isn’t perfect but it’s not so bad that you can’t construct your situation the way you want to. My current job is one that I wouldn’t trade for anything in the world.
If I ever get laid off, I would have no choice but to leave and find another job. However, until then, I plan on taking full advantage until I can. The lack of certainty and future is real when it comes to entrepreneurship.
You think freedom is worth it until you actually experience it firsthand what it really means. There’s negatives that many don’t even consider.
3) You Feel Lost and Depressed
This Reddit post summed it up perfectly. You should retire to something not running away from something. If your life is currently bad because of a 9-5, early retirement can always be worse. Too many people think the grass is greener on the other side.
Without thinking the grass can be worse on the other side. There are concrete reasons why retiring early is bad. And whether we like it or not, we can’t effectuate dramatic change in our lives that quickly from early retirement to an alternative route that quickly.
Did I retire too early? Yes, if you feel depressed more often than before. When we’re working, we don’t have time to be depressed because we’re too busy working and being productive. Men who work longer also tend to lead longer lives than their non-working counterparts.
We actually like feeling like a productive member of society. It’s when we have a sense of purpose in our lives.
4) You Want to Earn More W-2 Income
Did I retire too early? Yes if there comes time in your life where you actually want to earn more W-2 income. The tax laws heavily favor business structures of earnings/losses. However, it’s quite unstable. Even if you have a profitable business that does $1M this year, does not mean you’ll do the same next year.
Businesses and trends always change and at least with an employer, they figured all of the intricate details out already. They have an army of team members who went through everything and understand which resources to utilize to solve a problem.
There’s more freedom with entrepreneurship but freedom comes with heightened risks. W-2 income isn’t all that bad because you get health benefits, 401k matching, HSA contributions, and the like. With early retirement, all those options are gone and you are on your own.
Did I retire too early? If W-2 income is enticing, then it is a yes.
5) You Feel Bored and Unfulfilled Throughout the Day
We like having a sense of purpose. The unemployed are miserable because they feel bored and unfulfilled throughout the day. Did I retire too early? if you feel unfulfilled and bored throughout the day, then that’s a resounding yes.
That doesn’t have to be the case. There’s definitely a way to pursue your own projects as an unemployed person. There’s no reason for you to only mope around and read books all day long because life is much more than that.
For some, they absolutely cannot work and be productive unless someone else tells them to do something. Or if there is a structure. If you are one of these people, then it may be a sign to go back to a 9-5 job, which there isn’t any shame in doing.
Plenty of people went back to work after retirement. Professional lawyers retired at the end of 2021 only to go back to work in 2022.
6) Did I Retire Too Early? Yes if You Feel Like You Lost Your Identity
Whether we want to admit it or not, we associate our identity with our jobs. It’s how we introduce ourselves. When someone is asking, “what do you do for a living?” they’re not asking what you’re doing for a living.
They’re subtly trying to gauge how much respect they should give you. Did I retire too early? If you feel like you lost your identity, that’s an absolute yes. If you can’t stand introducing yourself as “unemployed” to someone else because of what they might think, then that’s a surefire sign.
I personally associate my job with my identity. To me, those two are intertwined to be almost the same thing. Therefore, it’s understandable when an early retiree thinks so as well. Your identity is important to you because it makes up who you are.
You should be happy and proud to be who you are and how you introduce yourself to others.
7) You Want to Relate to Your Friends and Former Coworkers More
An early retiree just does not relate to an employee who bought a $50k boat with their recent bonus. Even if they were close before, that doesn’t mean they’ll always be close. It’s what we spend the most of our time on that matters the most in relating to someone else.
When they are spending the majority of their time working and you’re spending the majority of your time with early retirement activities, it’s difficult to relate. Did I retire too early? Yes if you feel completely alienated from your former coworkers and you want to feel closer to them.
Some people cannot stand being alone. I personally enjoy and love my time alone. However, for someone else, they need that human interaction with someone else. Early retirees are the minority of people because only rich people can afford to retire early.
Therefore, there’s less chances to relate and build a genuine relationship with. If you feel lonely with your friend group, it may be time to do something about it.
8) You Start Applying to Jobs “Just for Fun”
No one ever applies to jobs “just for fun”. A job application is a grueling procedure a company puts you through. You have to get your resume ready, apply, talk to HR, go through multiple interview rounds, negotiate, and the work never ends because you have to prove yourself in the job afterwards.
When you start applying to jobs “just for fun” it means you miss working a 9-5. Did I retire too early? Yes, if you are exhibiting signs of a normal person who is looking to find a job. Or you may be passively handing out emails to recruiters and asking for introductions.
Or you may be asking your network if there’s additional opportunities available. Whatever the case is, if you are passively taking steps to acquire another job, then that’s a good sign you want to go back to the corporate world.
As a serial job seeker myself, let me be the first to tell you. I want to limit the number of job applications I send out every year. If you are sending in applications, it’s a sign.
9) You Just Know it In Your Bones
One of my friends retired and went back to work 10 years later to work in banking. It wasn’t about the money, he just needed and wanted something to do. Life isn’t all about maximizing money at the sacrifice of everything else.
It may be hard to go back to work after an entire decade passed, but that doesn’t make it impossible. You have the best idea of how it feels like on a day to day basis. You just know the answer to did I retire too early? is a resounding yes.
You can’t explain why nor can you articulate why. All you know is that it’s not what you were looking for and nothing like how you thought. Just like how you know when vacations stress you out because of your job, you know when you want to go back to work.
There’s no need for someone else to convince you why you retired too early. You just already know.
Did I Retire Too Early? It’s Never Too Late to Change
You can always get back to work. It may not be at the salary level you once were. Or it may even be at a better salary level than before. However, the chances of getting back to work is always there. Many people went back to work during 2021 – 2023.
Did I retire too early? If that actually is the case, there’s nothing wrong with dusting off the resume and submitting an application to a company. It’s an even better time because you don’t have a job that requires your attention.
You can take your time finding opportunities out there in the world. When I had a job, I felt more stressed when job hunting than when I didn’t have a job. I felt like I was always in a rush because I had to interview on the company’s preferred timeline and they’re never fully transparent with you on the process.
However, when you don’t have a job, you can take your time asking the intelligent and necessary questions that are important to you. That may tip the scale one way or another when making your decision. Making an informed decision is an advantage you can’t ignore.
Did I retire too early? if you feel this way, there’s nothing wrong with changing your course and going back to work. Some people think they want to leave the corporate life until they find out they can’t live without the structure.
You won’t be the first one and you won’t be the last.
Did I Retire Too Early? 9 Shortlist Signs
- You know it in your gut
- Did I retire too early? Yes if you miss going back to a 9-5
- You feel lost and depressed
- You want to earn more W-2 income
- You feel bored and unfulfilled throughout the day
- Did I retire too early? Yes if you feel like you lost your identity
- You want to relate to your friends and former coworkers more
- You start applying to jobs “just for fun”
- You just know it in your bones
