If you’re nearing retirement age and know you’re not financially prepared for retirement, your solution may be to work longer. While forgoing an early retirement can be prudent, your career might not last as long as you’d like it to. The pandemic and resulting economic conditions forced 1.9 million workers ages 55 and over out of the labor force in 2020.1 Even in normal times, health problems, family responsibilities, layoffs, and business closings can cause people to leave their jobs unexpectedly. The truth is that retirement isn’t always voluntary, and you could have to retire earlier than you expected to.
According to the Employee Benefit Research Institute, almost a third of American workers predict that they will work until age 70 or older, but only 7% of people surveyed actually ended up working until age 70.2 This can be an issue because older workers tend to have a harder time getting hired, and when they do, they often have to work for a lower salary.
Although your mind might be ready to work into your 70s, your body might not be. Workers are sometimes forced to retire earlier than they planned because of health issues. No matter how healthy you are now, anything could happen in the next few years. Even if your health remains perfect as you age, you might have a family member who requires your care, such as an aging parent, a spouse, or a grandchild. Caring for your loved ones can be a time-consuming and unpaid job that might disrupt your retirement plans.
A financial advisor can help you create a retirement income plan, regardless of how old you are when you retire. This could include maximizing your Social Security benefit, reviewing your options for your 401(k) and any pension you may have, and seeking to create income that will last for the rest of your life. Even if you have to retire earlier than you expected to, you can create a plan that aims to help you not outlive your savings.
Don’t assume you’ll be able to work for as long as you want – unexpected job loss, health issues, and unexpected caregiving responsibilities happen all too often. We can help you create a comprehensive retirement plan that may help you if you have to stop working earlier than you expected to. Schedule your no cost, no obligation financial review to get started on a comprehensive retirement plan designed for your lifestyle.
1 https://www.forbes.com/sites/teresaghilarducci/2021/03/01/covid-19-is-most-certainly-a-retirementstory/?sh=676e4b851750
2 https://www.ebri.org/docs/default-source/rcs/2019-rcs/rcs_19-fs-2_expect.pdf?sfvrsn=2a553f2f_4
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Advisory Services offered through Asset Strategy Advisors, LLC (ASA). Securities offered through licensed representatives of Concorde Investment Services, LLC (CIS), member FINRA/SIPC, or RCX Capital Group, LLC, (RCX), member FINRA . Insurance offered through Asset Strategy Financial Group, Inc. (ASFG). ASA, CIS, RCX and ASFG are separate companies.
