Are you one of the 64 percent of Americans concerned about not having enough money in retirement? According to Gallup’s latest annual survey on financial worries, retirement is the top concern for the 15th year in a row. In fact, it’s been the No. 1 financial concern every year Gallup has conducted the survey.1
If you’re facing a savings gap for retirement, the solution may seem obvious. You can simply work later into life. Delaying retirement may, at first glance, appear to be the clear answer to overcoming your savings shortfall. When you delay retirement, you give yourself additional years to save, and you reduce the number of retirement years that have to be funded.
There’s one problem with that strategy, though. Your retirement age may not be up to you. Many retirees learn the hard way that retirement isn’t something they choose as much as it’s something that happens to them. Below are three reasons why you may not want to plan on working forever:
Think disability is rare? Think again. According to the Council for Disability Awareness, 1 in 4 adults will become disabled before they reach retirement age.2 Also, disability may become more likely as you age. The Centers for Disease Control and Prevention found that 60 percent of those age 65 and older have limitations with at least one basic daily activity.3
If you become disabled, you may not be able to continue your career or even transition to a new job. If that’s the case, you may be forced to retire, even if you haven’t reached your desired retirement age.
Care for a Spouse
Health issues are a common cause of forced retirement, but it may not even be your health issues that are the problem. If your spouse or another loved one requires long-term care, you may be forced to either limit or discontinue your work so you can provide support.
The U.S. Department of Health and Human Services estimates that 70 percent of those age 65 and older will need long-term care at some point in their lives. That care, if provided by a professional, can cost thousands of dollars per month. You may decide it’s more prudent for you to retire and provide care yourself rather than hire in-home help.
Finally, there’s always the possibility that you may be perfectly healthy but are still forced into retirement. The economy and job market are constantly in flux. Just because a job seems secure today doesn’t mean it will be years down the road.
While it may not be pleasant to think about being laid off near the end of your career, it’s certainly a real possibility. Consider that if you were to lose your job, it may be difficult to find new work. In that case, retirement might be the only feasible option.
Do you have a backup plan in case you can’t work as late in life as you would like? Let’s talk about it. Contact us at Gregory Financial Group. We welcome the opportunity to assess your needs and goals and help you develop a strategy. Let’s connect soon.
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
16160 - 2016/10/18