By Michael O’Connor, theislandinvestor.com

Financial Independence/Retire Early (FIRE), is an incredibly popular movement in Ireland.

The idea is that we should seek financial independence by maximising our savings and living well below our means.

These savings are then invested in low cost diversified index funds until you have accumulated a sufficient pool of money that allows you to retire early. I may be brushing over some of the details - but you get the gist.

I’m all for financial independence, it’s a huge part of what I do. It’s the second half that I’m not really on board with yet.

Early retirement

Every person I know, be it my parents, my friend's parents or my extended family members have either struggled with retirement or given up on it completely and gone back to work. We are seeing a growing trend of people ‘un-retiring’.

This trend doesn’t surprise me.

We seem to underestimate the loss of purpose that comes with retirement. A huge part of your life is suddenly ripped out and you’re just left with an empty cavity while those who once depended on you, move on seamlessly.

Mentally that can’t be easy.

You’ve undoubtedly lost a sense of self.

“I won’t be worrying about all that, I’ll be too busy holidaying and playing golf”.

Sure, there is the initial honeymoon period but think past that. Spending your days filling time just to fill time is sure to get old pretty quickly.

The general response to this one is; “Oh but I will have the freedom to do whatever I want”.

But why are you waiting until retirement to pursue ‘whatever you want’?

Don’t get me wrong, I’m not suggesting people should work until they drop (literally), but trading your 40 healthiest years to a corporation in exchange for 20 years of freedom when your body is breakdown isn’t ideal.

Surely there is a balance

Why can’t we prioritise our hobbies in the best 40 years while working a bit less instead of working non-stop and then coming to an abrupt halt.

Why can’t we operate on a glide path system into retirement where you can work less, but still offer your skills and earn an income into old age.

As Michael O’Leary said "It’s better to wear out than rust out".

Granted this is a pretty idealistic view but there is surely another options besides making retirement your ultimate financial goal.

This whole rushing to the finish line idea just seems flawed to me.

Living on the breadline for years just so you ‘put your feet up’ a year or two earlier isn’t a financial plan.

You’re simply forgoing comfort now for perceived comfort in the future.

Make sure the sacrifices you are making are worth the trade-off.

Like most things in life, you need to find the balance.

*Come back to me on this one when I’m 55 and my future kids have squeezed me for every bit of energy and money I have. I’ll likely have a completely different take.

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