| Retirement Timing—It May Not Be Your Choice |
Downsizing, injury, health limitations, and family emergencies can all contribute to sudden and unexpected early retirement. In fact, almost 40% of those surveyed were forced to retire.
Early, forced retirement hurts financially on two fronts: the time people thought they had to catch up on retirement savings is abruptly cut short, and involuntary retirees often face higher costs for unexpected expenses such as medical bills.
Nearly half of involuntary retirees have not yet reached the age of 60. The financial impact of involuntary retirement can be particularly devastating to workers in their 50s or early 60s as they were planning and hoping for additional time in the workforce to save toward retirement.
Through usually no fault of their own, involuntary retirees bear a heavy burden. Typically, retirement comes before they saved enough and is usually accompanied with the burden of extra costs for health care. Almost two-thirds feel they are not financially prepared for retirement. And, it appears that a sense of financial unpreparedness cascades to many other aspects of their lives as well.
Those who retired on their own timetable worked long enough to save and prepare. If they also manage to cut expenses and stay healthy, most voluntary retirees can expect a reasonably successful retirement.
Though not "forced" to retire, 29% are still financially challenged.
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You can read more about this topic in 2005 Study on Roadblocks to Retirement
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