3 Telltale Signs That You Retired Too Soon and Practical Fixes You Can Start Now

Retiring before age 65 means going without Medicare, and finding affordable coverage on the individual market can be daunting. “Premiums are rising, and healthcare costs can erode retirement savings faster than planned,” says FitzPatrick.

These costs, combined with inflation and market volatility, can create a triple threat for early retirees. And if you claimed Social Security early, your monthly benefits may be permanently lower than if you’d waited. “Claiming Social Security benefits early often means a permanent reduction in monthly payments, whereas delaying can lead to substantially higher lifetime payouts,” FitzPatrick says.

To protect your savings, explore options for coverage. First, check if you qualify for subsidies through the Health Insurance Marketplace, as they can reduce your premiums. You should also consider joining a spouse’s employer-sponsored plan, which may end up being the most cost-effective route.

If you’re leaving a job, COBRA coverage can extend your previous employer’s plan for up to 18 months, though usually at a higher cost. Finally, for those willing to work part-time, certain employers offer health benefits to part-time staff, which can help you avoid tapping into your nest egg for medical expenses.

The retirement dream doesn’t always match reality. Many new retirees struggle with a loss of identity or structure.

“A third, less visible but equally important sign is a sense of lost purpose or structure,” FitzPatrick says. If you feel unmotivated or disillusioned in retirement, consider exploring new hobbies, volunteering, or even taking on part-time work.

You should also look into whether returning to the workforce full-time is right for you. “Without a clear path for how to stay engaged, some early retirees ultimately find that returning to work offers social and intellectual fulfillment,” FitzPatrick says.

That return to work will also help you financially: Even a few extra working years can dramatically improve long-term projections, FitzPatrick says. In one case, he recalls a client who felt burned out from a demanding legal career and was aiming to retire at 50. She wasn’t financially ready to retire, so FitzPatrick advised her to take a short sabbatical instead. She opted to take a career break of less than a year and then transitioned into a less demanding role—all without having to cut back on her spending.

Early retirement isn’t always a mistake—but it requires more planning than many people realize. If you’re burning through savings, struggling to cover healthcare, or feeling adrift, it may be time to adjust. That could mean downsizing, renting out a property, starting a side hustle, or rejoining the workforce in a part-time or passion role. It might even mean going back to work full-time.

With the right course correction, it’s never too late to improve your financial footing and your sense of purpose in retirement.

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