Jeff Bezos is now a retiree.
Kinda, sorta, that is.
The median net worth for someone between the ages of 55 to 64 is $212,500.
That means Bezos has roughly $210,999,787,500 more than his peers.
Just to be clear, Bezos isnt totally retiring.
Like a lot of early retirees, hes transitioning to a different bang out of work.
Hell still serve as executive chair of Amazon.
Hell devote more of his time to passion projects, like fighting climate change and overseeing The Washington Post.
So yeah, suffice it to say that Bezos retirement is going to look a lot different from yours.
Still, its possible for regular people to pull off an early retirement like Amazons founder.
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Here are five things to expect if youre a non-billionaire who wants to retire early.
Health Care Costs Will Be Expensive
Billionaires like Bezos obviously dont have to worry about paying for health care.
But for ordinary folks, medical expenses in retirement are a big concern.
Typically, you arenteligible for Medicareuntil age 65.
Someone whos 64 can expect a monthly premium of $1,123.
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2.
Ordinary people can expect to be taxed at a much higher rate than Bezos, even in retirement.
Withdrawals fromtraditional 401(k)sandtraditional IRAsare taxed atordinary income rates.
Even your Social Security benefits arent off limits.
Of course you could stillwork when you collect Social Security,but there are limits to that.
Social Security Planning Is Tricky
Bezos probably hasnt given a lot of thought to his Social Security claiming strategy.
Thats a luxury ordinary people dont have.
The average Social Security check in 2021 is $1,543 a month.
Deciding when to take Social Security gets extra complicated when youre retiring early.
Financial planners often recommend waiting as long as possible to start benefits.
But if you no longer have a paycheck, you may have no choice but to start benefits early.
Keep in mind thatSocial Security cost-of-living adjustmentsare puny compared to the actual cost increases seniors face.
In 2021, Social Security benefits rose by just 1.3%.
Taking benefits early could stretch your budget to the limits in your later retirement years.
Your benefits wont keep up with inflation, so theyll pay for less and less over time.
You May Have to Choose Between Early Retirement vs.
But you probably do.
Most people only have so much money they can afford to invest.
When you arent rich, a forced retirement can devastate your finances.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
Probably not as good as youd like.
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