If your retirement plan consistents of working until you have enough money to retire, you may want to think again, or at least begin working on a “Plan B”. At a minimum, you should be aware of the reality that you may not have that option.
According to a recent study by Voya Financial (as reported by USA Today), 60% of Americans have to retire earlier than planned.
60%. 6 Out Of 10
You better have a strong Plan B.
If you’re not doing everything in your power to be prepared as early as possible, you’re putting your future at risk. Based on the data, the reality is that you have a greater chance of having to retire sooner than you do of working to your planned retirement date. Don’t be naive and assume all will be well. I’m sure most folks in that 60% felt they had time to save more for retirement. I suspect most were ill prepared for the reality they faced when they were forced to retire early. I suspect most thought it wouldn’t happen to them. Unfortunately, we’re not in complete control of downsizing decisions, or unexpected health situations (the two most common reasons for being forced out early).
Stop. Think for a few minutes.
Imagine for a minute that you are suddenly faced with the situation the majority of retirees face. You’re suddenly forced out early. It’s unavoidable. Imagine it’s you. A few questions for you:
- Will you have enough money to live your desired lifestyle?
- Will you have regrets that you didn’t do more when you had the chance?
- Will you face a long retirement of stress and disappointment?
- What would you have told yourself 5 years ago if you knew this would happen?
Now, imagine you KNOW you’re going to lose your job in 5 years, even though you think you’re going to work for 7 more years. What would you start doing TODAY to be prepared in 5 years? I suspect you’d:
- Spend a bit less money on optional purchases?
- Perhaps defer buying that new car you were thinking about?
- Have a bit more interest in your investment statement?
- Consider consulting with a financial planner to develop a plan?
- Increase your savings rate by at least 5%?
The reality is – you’ll probably retire earlier than you think you will, and it won’t be by choice.
Assume it will happen to you, and plan accordingly.
Start today, while you still have time.