Are you thinking about retiring prematurely? Note these disadvantages. (Photo: adrian825, Getty Images / iStockphoto)

Many people have negative views on young retirees: they are spoiled. Are you lazy. Her parents helped them. They won the lottery. None of this applies to me.

I grew up in a middle-income household. I worked hard to earn good grades and pay for college. I was the first one in the office and the last one left. Sure, I was lucky to get a high-paying investment banking job and some of my investments, but I live a thrifty life and have been diligently managing my finances.

All this played a big role in my early retirement in 2012 at age 34. When I quit my job, I had amassed about $ 3 million in net worth, generating about $ 80,000 in capital gains per year.

I do not regret my decision.

I will not lie: The early retirement was a dream come true. I gave up a healthy six-figure paycheck but won something priceless: freedom.

I was told I was crazy to leave a high paying job at such a young age, but I was totally burnt out and was feeling disappointed with my industry. I never imagined how unhappy I would work after the financial crisis in finance.

Early retirement is not for everyone. But in my experience, the benefits outweigh the disadvantages. I can wake up whenever I want. I no longer have to endure unproductive meetings or resign myself to shameful colleagues. I traveled with my wife to more than 20 countries, wrote a book on negotiating a severance pay and training tennis in high school.

I became a dad in 2017 too. Time job I ever had; Working in investment banking for 13 years feels like a walk through the park.

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The disadvantages of early retirement

I admit that there are a few disadvantages. (I finally understand why researchers claim that 68% of the 400 delinquents in a CompHealth survey in 2017 return to our normal baseline of happiness, regardless of how much we gain freedom or money.)

– The surveyed health care professionals said they are not excited about retirement. The main problems included the loss of social interaction at work, the loss of intent, boredom and depression.

In other words, here are the biggest drawbacks of early retirement that nobody likes to talk about:

1) You may be suffering from an identity crisis.

One of the most common questions people face when they meet for the first time is, "What do you do for a living?"

If you've spent at least 10 years working in a job , you may be incredibly nervous about being identified as a marketing expert, investment professional, or business consultant.

It was not until I left my job that I realized how obsessed I was with my job. I've often wondered: How's business going without me? I was there 11 years. Were you really able to survive without my expertise?

But after months of not asking for emails or phone calls, I finally accepted the fact that I was no longer needed.

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2) You can think for yourself.

When you retire young, you may wonder if you have made the right choice and regretted all the money and status you have given up.

I still had a mortgage to pay and was worried that I had made a serious mistake. But after a while, my plans became clearer. I started writing more about Financial Samurai, the personal finance website I launched in 2009. It was a cathartic way to deal with stress and insecurity.

Fortunately, Financial Samurai has grown tremendously three times a week over the last 10 years. I reinvested 100% of the profits and earned a decent passive income.

3) Humans can treat you like an outsider.

Maybe it's because early retirement is unconventional. Or maybe you are secretly jealous that you are not stuck to a day job. Whatever the reason, people will not always show you the same respect as a working class citizen.

At some point I was tired of explaining why I retired early or that I was not a fiduciary child. To keep the discussion simple and to regain a social identity, I would simply say that I am a writer and tennis coach.

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4) You'll be surprised that you not so much happier.

Many people believe that once they gain financial freedom or leave a job, they will hate them for ever. However, as I mentioned earlier, research has found that any significant amount of increased happiness is short-lived.

On a scale of one to 10, my fortune level rose to a 10, after I was able to negotiate a fairly solid severance pay. It was enough to cover the cost of living for five years. But not too long after this check reached my bank account, I returned to my normal fortune after retirement.

5) It can be very, very boring.

Early departure is like ending the season finale of your favorite TV show. You're glad it has a nice ending, but you're also sad that it's over and you're wondering what's coming next.

With an additional 10 to 14 hours of free time per day my productivity suffered and I was less motivated to achieve something great gains. It did not help that none of my friends or former colleagues could hang out. There were no company holidays or other customer events. Believe it or not, I really enjoyed these things!

Now I try to attend various meetings to make new friends, but my social life is mainly made up of people I meet through tennis and softball. [19659006] Only three years later, when my wife came to early retirement, my boredom began to dissipate. We traveled a lot, but more importantly, we became parents, which renewed my mind.

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Early retirement does not solve all your problems

The truth is: If you're unhappy you are likely to be unhappy even after you retire before you retire early. It's better to find out what your problems are and to fix them first. Then you have a clear idea of ​​what you actually intend to do when you retire. Otherwise, you only treat retirement as a crutch – and that rarely works.

After seven years of retirement, I finally found my groove by doing things that I enjoy doing regularly:

  • Writing on Financial Samurai
  • ] Investing in Real Estate
  • Training tennis at high school [19659044] Being a Husband and Staying Home

(I think the first two are more for hobbies, even though I earn some money with them.)

Early retirement is not the elixir of perpetual happiness, but it certainly is better than the whole Commute to work and sit in meetings!

Sam Dogen worked for 13 years in Investing Banking before he started Financial Samurai a personal finance website. He received a B.A. in Economics from the College of William & Mary with an MBA from the University of California at Berkeley. Sam was featured in Forbes, the Wall Street Journal, the Chicago Tribune, and the L.A. Times.

© CNBC is a content partner of USA TODAY, which offers financial news and commentary. Its content is being produced TODAY independently of the US.


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