Most of us picture retirement as something we plan for and choose—maybe it’s age 65, or when the mortgage is paid off, or once the kids are settled. But the truth is, retirement doesn’t always happen on our timeline. Life has a way of throwing curveballs that can fast-track even the most carefully laid retirement plans.
It’s called forced retirement risk, and it’s more common than you might think.
The Reality of Forced Retirement
Imagine this: Peggy planned to retire at 65. But at 61, her company shut down her department. With few similar job opportunities nearby, she struggled to find work in her field. Not only was her plan to save for four more years derailed, but she also had to figure out how to pay for health care until she became eligible for Medicare.
Unfortunately, stories like Peggy’s aren’t rare. In fact, multiple studies show that more than 40% of retirees stop working earlier than planned—and not by choice.
According to research:
- A 2018 Prudential study found that 51% of baby boomers retired earlier than expected.
- Only 23% did so voluntarily.
- The rest cited reasons like:
- Health problems (46%)
- Job loss or early retirement offers (30%)
- Caring for a loved one (11%)
Another study by the Employee Benefit Research Institute found similar results, with nearly half of retirees leaving work sooner than they intended.
So, What Can You Do?
The good news is, while we can't predict the future, we can plan for a range of possibilities. Here are three key areas to focus on:
1. Plan for Multiple Retirement Timelines
Rather than planning only for your ideal retirement age, consider creating benchmarks for different scenarios:
- 10 years out – Could you live on a reduced but still comfortable income?
- 5 years out – Could you step back slightly while maintaining security?
- Target retirement age – What does your ideal retirement lifestyle look like?
By thinking in phases, you're not just preparing for Plan A—you’re building Plans B and C as well.
2. Keep Your Career Resilient
Career disruptions are a leading cause of forced retirement. To reduce this risk:
- Keep your skills sharp and stay up-to-date in your field
- Maintain a strong professional network
- Update your résumé regularly and explore freelance or consulting options
- Know your employer’s severance policies and, if possible, negotiate for better benefits
Taking these steps doesn’t just protect your income—it gives you options.
3. Protect Your Health & Wellbeing
Health-related issues are the top reason people leave the workforce early. While not all health issues are preventable, many are influenced by lifestyle.
Support your long-term career and retirement goals by:
- Eating a balanced diet
- Staying physically active
- Getting enough sleep
- Managing stress and maintaining regular medical checkups
Also, think about pacing yourself. For example, one client, Joe, taught high school and did summer landscaping work for years. At 60, he gave up landscaping to avoid physical burnout, and as a result, he was able to continue teaching—with summers off—until age 67.
Sometimes small shifts can extend your working life in a sustainable way.
Final Thoughts
Forced retirement is a risk many people don’t think about until it’s already happened. The earlier you plan for the “what ifs,” the better protected you’ll be—financially and emotionally.
If you’d like help building a plan that’s resilient and realistic, I’d be happy to walk through it with you. Together, we can make sure your retirement works—no matter when it starts.