4. Your Nest Egg Will Have To Last Longer

Let’s say you decide to retire early at 62. If you live to 90, your individual retirement accounts and other savings will have to last for about 28 years. However, if you retire at age 72 and live for the same period of time, your nest egg will only have to cover you for 20 years.

Working longer also translates into more years in which you can contribute to a 401(k) or other retirement plans and more time for you to earn interest, but this won’t happen if you retire early.

According to Stephen J. Taddie, a financial expert, a great way to estimate your retire-ability is to multiply your estimated draw on investment portfolios that will boost your Social Security and other sources by 25.

If you have that much money in those combined accounts, you should be fine retiring early. If you’re close to it, think twice. And don’t expect that living will be less expensive, either. Most seniors believe their expenses will decline during retirement, but in most cases, this isn’t the case.