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For many, retirement comes too soon

Posted Jul 22 2009, 11:18 AM by Karen Datko
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Grace of GRACEful Retirement is 60 years old, and she plans to work for nine more years. Otherwise, she won't have enough savings for even a modest retirement.

So a recent study was sobering news for her: Nearly half of retirees leave the workforce earlier than planned.  

Here's how she summed it up: "Job loss, age discrimination, family duties (such as caring for a spouse or one's parents) or a personal health crisis make a mockery of well-laid plans." 

The study, by the Employee Benefit Research Institute and Mathew Greenwald & Associates, found that 47% of retirees left work earlier than they had intended, wrote Emily Brandon at U.S. News & World Report. About 42% of those folks were forced to quit because of health-related issues, and about a third retired early because their job went away. Another 18% had to care for an ailing family member.

Only 10% of those surveyed mentioned only positive reasons when they explained why they retired earlier than planned.

The numbers look even worse for Grace. About 21% planned to work to age 70 or older, but only 5% actually reached that goal.

What's a person to do? Grace is pursuing frugality and reducing debt. Her blog is full of examples of her resourcefulness. In one recent post, she explained how she circumvented Bank of America's plan to add a monthly fee to her "senior" account. In another, she related how she's using a 0% balance-transfer credit card to slice $466 from her credit card debt.

But she admitted the study is somewhat depressing. "It gives me pause to contemplate all the things that can go wrong between now and age 69," she wrote.

Related reading:

7 pitfalls retiring baby boomers must avoid

7 steps to a successful ‘unretirement'

The hidden threats to your nest egg

Money doesn't buy happiness in retirement

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Comments

 

So true!  My husband planned to work at least until 65.  Due to severe disability problems he had to retire at 53-fortunately he is army retired and we had that income and he did qualify for disability.  Things are better now (nearly 10 years later) but we have learned to live very frugally.

txgranny (Posted 07.22.09 2:09 PM ) Report Abuse

I'm 50 & 6 mos. old, been laid off for 6 months now. Planned on retiring at 58, but I can get out reduced at 55. Looking towards the future I see no work in my field. Will probably have to get out at 55. Thank GOD I have a union pension I can tap then, along with my 401k & annuity, not to mention my savings bonds, Roth IRA's, & hopefully some rising FORD stocks. My girlfriend works still, so I can stay home to be with the kids. I was always taught to save for the future, you never know what may happen, sure didn't expect to loose my job to a younger person. The only thing killing me now is the health care at $1,250 per month. But I will survive, just like my two previous divorces. You young people put some away for the future, it could happen to you!  WORK & BUY AMERICAN!!!!

QUICKDRAW1958 (Posted 07.22.09 8:33 PM ) Report Abuse

i have been working since i was 13, i am now 53  and i will never have a pension check besides socsec.  thank god i am a saver or i would have nothing.  never work for a govt contrctor as they have no longivity and you will always lose what you have gained because the govt always dumps contractors after a few years.  while i now have a professional license  401k's are a joke, savings accts are even worse.  and as for health care we are all screwed.  americas best days are behnd her unless business and personal tax rates are lowered so businesses can come back home and people have more money to save..

JOHN (Posted 07.22.09 10:27 PM ) Report Abuse

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