When you think about retirement, do you have a specific age in mind? While some of us would like to retire early, most of us are probably going to try to put it off as long as possible. Waiting as long as you can to retire is often a smart move, as it allows you to collect the maximum Social Security benefit, and because certain types of retirement accounts carry a penalty for early withdrawal. Of course, the age at which we retire isn’t always up to us. There are a number of reasons why people are forced to retire early, and if you’re not considering early retirement as a possibility, your retirement plan may not be as solid as you think. Here are some reasons why Crash Proof Retirement ® believes everyone should be planning to retire early, even if it’s only as a contingency plan.
Many of us would like to keep working for as long as we’re able to, not only because we need to save money for retirement, but also because of the sense of purpose that comes along with having a career. Unfortunately for some, retiring early is not always a conscious decision. In some cases, losing your job may be the reason you have to retire early; in fact, a survey conducted by the personal finance site NerdWallet estimated that as much as 9% of the retired population left the workforce because they lost their job. If you lose your job and don’t have enough retirement money stashed away, you could end up trying to enjoy your golden years with less income than you expected.
Illness or Injury
Unforeseen health problems could be another reason why you might have to retire early, and it’s one that can really catch you off-guard. The same NerdWallet survey found that as much as 18% of retirees had to stop working because of their health. Whether it’s an illness, an injury, or another health-related problem, an early retirement could mean you won’t have enough money saved for the future.
Planning for Early Retirement
You might think that retiring from the workforce early is a luxury reserved only for the wealthiest among us; in reality, it’s a decision that as much as 36% of the working population will have made for them. If you haven’t considered early retirement as a possibility, you might want to think again and start saving some extra money now. The younger you are, the easier it will be to save some extra cash, but don’t fret if you’re in your 30s, 40s, or even your 50s. There are many ways to cut expenses, so get creative and find some little things you can do to pad your retirement accounts. It’s also a good idea to speak to a retirement planner about your goals for retirement and come up with a backup plan if you have to retire early.
Crash Proof Retirement ® has already helped thousands of retirees ensure that they’ll be financially secure in retirement, and it’s never too early or too late to start planning. Get in touch with us today by visiting https://www.crashproofretirement.com for a free consultation or visit our “Events” page to sign up for a Crash Proof Retirement ® Educational Event where you can get all the information you need about financial vehicles that can protect your retirement nest egg even in the event of a stock market crash.