Many of us may feel this way, but the startling truth is this: either due to health issues, downsizing, or the health of a loved one, nearly 50% of us will be forced to retire earlier than we had planned.1
The old adage, “an ounce of prevention is worth a pound of cure” could not be more apt when it comes to thinking about retirement. We may have every intention to keep working past the age of 62, 65, or later, but circumstances change, and so must our plans.
We might anticipate facing health difficulties as we age, and do our best to stay healthy and active. However, even the best laid plans meet unexpected obstacles. In 2017, there remains a big gap between the age in which workers plan to retire (65) and the age they actually do (62).1Beyond ailing physical health, here are some of the top reasons we may least expect:
- I lost my job
- I have to care for my spouse or family member
- Relocation (i.e., due to natural disaster, family obligations)
- Mental health (addiction, depression, anxiety)
A mere 4 out of 10 workers1 have tried to calculate how much retirement will cost. Don’t wait! It could cost you more than you think.
If we consider these calculations2 now, decisions we make today can make all the difference for us tomorrow. Here are some of the things you should consider:
- What are your fixed costs?
- Service payments
- Real estate taxes
- What are your flexible expenses?
- Luxury items
- What are your income sources?
- Social Security
- Retirement accounts (ie, 401(k), IRA)
- Rental income
- Investment income
- Stocks, Bonds, Mutual Funds, CDs
- Part-time or full-time work
- What are your healthcare costs/needs?
- For yourself
- For your spouse
- For your dependent