Why Retiring Early Beats Retiring Wealthy

Early retirement is better than retiring rich (well, nearly always)

For most of us, the mental image of retirement swings between two poles: the dream of calling it quits while you’re still young enough to hike the Milford Track without your knees complaining, and the fantasy of retiring rich, lounging on a yacht in the Mediterranean, martini in hand. But here’s the thing: when it comes to choosing between retiring early or retiring rich, the smarter bet (for most people) is retiring early.

Now, don’t get us wrong, money is important. But time, health, and freedom are the real currencies of retirement. Investments in these areas provide the largest potential paybacks, as billionaire investor Warren Buffett famously said: “The most important investment you can make is in yourself.” That doesn’t just mean financial knowledge, it also means ensuring you have enough good years to enjoy life.

At Become Wealth, we spend plenty of time with clients navigating the tricky decisions about retirement. And one truth keeps reappearing: retiring early often provides more satisfaction than retiring rich.

Let’s explore why.

The Hidden Wealth of Time

What if the most important number isn't on your personal balance sheet? What if true wealth isn't measured in dollars and cents, but in minutes and moments?

Time is the one resource we can’t manufacture more of. As Harvard researchers have repeatedly found, people who prioritise time over money are generally happier and experience better wellbeing. That should tell us something about how to plan retirement.

When you retire earlier, even if your bank account isn’t bursting at the seams, you gain more time while you’re healthy and mobile. Sure, you may not be flying business class everywhere, but you’ll be able to climb those cathedral steps in Italy, paddleboard in the Bay of Islands, or chase your grandkids around the backyard. (Better yet, you’ll still have the mental faculties to remember why you put all those dollars away in the first place!)

Compare that to the person who works an extra 15 years, amassing serious wealth but also sacrificing health, energy, and zest for life. They may be able to afford the yacht, but by then they might be too busy comparing knee-replacement surgeons to enjoy it.

The Myth of “Enough”

Becoming self-reliant is better than becoming just rich.

For years, the gold standard of retirement has been reaching an astronomical number. The goal has been to accumulate enough wealth to live a life of extravagant luxury, to never have to look at a price tag again. This is the "retiring rich" mindset. It's a seductive dream, but it's often a mirage.

The issue with chasing "rich" is that the finish line keeps moving. You hit a net worth of one million dollars and suddenly, you're eyeing two. You accumulate two, and you realise that your peers are aiming for four. It's a treadmill of perpetual desire, and as we all know, you can't outrun a treadmill. It just keeps going. The pursuit of "rich" can lead to working longer, sacrificing your health, and missing the very things money is supposed to buy: freedom, time with loved ones, and the ability to pursue your passions.

A Morningstar study showed that even high-net-worth individuals often feel financially insecure. That’s because money is relative, our expectations grow as our accounts do. Retiring early forces you to define what you really value: security, flexibility, or experiences.

Those among us who create clear, principle-based goals (like those we discuss here) tend to make smoother retirement decisions. Instead of chasing endless growth, they shift focus to what matters: lifestyle, family, and freedom. Exactly how this is defined will probably look different for all of us.  

Health: The Real Retirement Asset

The old saying goes, “Health is wealth.” It’s cliché because it’s true.

According to Bloomberg, global life expectancy continues to rise, but so too do years living with health conditions. That means your fifties and sixties are statistically likely to be your healthiest retirement years. Retire too late, and you may have the wealth, but not the physical ability, to truly enjoy it.

Here’s the irony: those who keep working late into life to “be sure” they’ve got enough often compromise their health through stress and overwork. And as anyone who’s ever had a dodgy back will tell you, no pile of money will make an uncomfortable bed more pleasant.

The Financial Independence, Retire Early (FIRE) Movement

This concept is at the heart of the Financial Independence, Retire Early (FIRE) movement. The movement challenges the traditional notion of working a forty- or fifty-year career. It is not about being a miser; it’s about being intentional. It is about identifying your "enough" number and then using that as your target. For many, the "enough" number is not measured in multi-millions. It is a number that allows them to cover their living expenses comfortably and continue to pursue a fulfilling life, without the need for a traditional payday.

Think about it this way: at what point does an extra hundred thousand dollars stop making a meaningful difference to your happiness? For many, the answer is "sooner than you think." Once your basic needs are met and you have a comfortable cushion, the returns from that extra money are marginal. The returns from a life of freedom, however, are immeasurable.

Retiring Early Doesn’t Mean Retiring Poor

Here’s where some readers start to worry: retiring early sounds nice, but doesn’t it mean you’ll run out of money? The truth is, not necessarily. It simply requires smarter planning, disciplined saving, and understanding what you can control.

Spoiler alert: you can’t control the global economy, interest rates, weather, or stock market. But you can control your spending, investment asset allocation, savings, and investment time horizon.

There are plenty of different strategies for decumulation in retirement, which focus on making your money last as long as you do. Retiring early doesn’t mean you abandon financial prudence, it just means you adjust your lifestyle and planning to suit. Often, clients discover they can live very comfortably without needing an enormous “$5 million retirement fund.”

The Psychology of Early Retirement

Humans aren’t robots; we’re emotional creatures. One of the biggest benefits of early retirement is psychological freedom. You don’t just buy back your time; you buy back your autonomy.

You stop being defined by your job title and start shaping your days.

A fascinating Stanford study found that retirees with purpose, whether through part-time work, volunteering, or hobbies, experienced better mental health and longevity than those who retired later but disengaged completely. Early retirement gives you the chance to experiment with this balance sooner.

And let’s face it: very few people lie on their deathbed wishing they’d spent more hours in workplace meetings.

Learn more:

• ‍Learn to spend in retirement
• Retirement fears and how to overcome them
• Why retiring at 70 might be a bad idea, even if you love your job

The Risks of Retiring Early

Of course, it’s not all roses. Retiring early comes with challenges:

• Longer retirement horizon: Retiring at 55 instead of 65 means your nest egg must last 10+ years longer.
• Rising healthcare costs: Even in New Zealand, where public health covers much, private health or long-term care could become a factor.
• Social adjustment: Work is often tied to identity and community. Without a plan, early retirees can feel isolated.
• Financial uncertainty: It’s key to model financial returns and income versus probable and possible expenses.

That’s why careful planning and regular reviews are essential. Retirement isn’t a static event, it’s a process, one you can (and should) adjust along the way.

Learn more:

• ‍Early retirement pitfalls, and how to avoid them
• Retirement financial wellbeing
• Your boomerang kids could ruin your retirement

Why Not Both?

Here’s the fun twist: for many, the choice isn’t actually “retire early OR retire rich.” With intentional planning, you can aim for both. Early retirement doesn’t have to mean scraping by on baked beans, and retiring rich doesn’t have to mean waiting until 75.

By combining strategies, building diverse income streams, and adopting a values-driven approach, you might just be able to create a retirement that’s both timely and financially secure.

Learn more:

• ‍The proven way to become wealthy
• New Zealand’s top sources of passive income

The Bottom Line: Early Retirement Beats Wealthy Retirement

We all have one life to live (as far as we know, anyway!). The goal of financial planning isn't to amass the largest possible fortune across a lifetime. It's to build a future where you have the freedom to choose how you spend your time. It’s about creating a lifestyle of self-reliance, so that you are in control of your own destiny.

Retiring early may not guarantee riches in the bank, but it does offer riches in time, health, and freedom. And those are the true markers of a life well-lived.

As the old saying goes: “You can always make more money, but you can’t make more time.” The real question is, how do you want to spend yours?

It's time to stop just planning for your life and start living it.

Your journey to financial independence is about so much more than numbers on a screen which define your “retirement finish line”; it's about claiming the freedom to live with purpose, passion, and peace of mind.

Ready to create your own finish line? Let's turn your "enough" into a reality.

Reach out to us today for a complimentary, no-obligation chat about your retirement dreams.