If you read this blog, you will see a lot of statistics about how people are not financially prepared for retirement. The sad truth is most people are going to have to deal with some tough decisions when they reach retirement age to get by. So, if you are not thinking about how you are going to deal with retirement yet… you should be.
If you have a plan, great. But what happens when things don’t go according to plan? I just read an article about how everyone should be saving money like they are going to retire early. And I think that is some great advice.
The article states:
“More than half of U.S. workers over age 50 are pushed out of long-held jobs before they choose to retire, according to a new analysis of Health and Retirement Study data by ProPublica and the Urban Institute, often resulting in irreparable financial harm that imperils their retirement and therefore the rest of their lives. Many never find work again, and those who do often have to take a massive pay cut or make other sacrifices that significantly diminish their quality of life. Only one in 10 ever matches their prior income before they were forced out.”
There is a lot of advice out there about working longer to make up for any retirement savings shortcomings you might have. I guess this could be a solution… albeit a sad one if you were looking forward to retirement. But what happens if you don’t have a choice about when you retire?
According to this data, the likelihood of being forced to retire early is 50%. And the vast majority of that 50% face a financial situation that destroys their retirement plans.
So, things might be far worse that I thought.
I feel there is a large number of people unprepared for retirement under normal circumstances, where they reach their desired retirement age. That leaves even less hope for the people who are forced to retire early.
So, the advice of saving like you are going to retire early is very smart… because a lot of you are going to retire early whether you like it or not.
Here is another quote from the article:
“We need to better prepare ourselves for an early retirement, which starts by changing how we think and talk about retirement, not as something that can be predicted with perfect precision, but more like a natural disaster: something that can strike at almost any time, without warning.”
I’m all about creating a secure financial future. And that having to prioritize my investing and savings now, so I can have a future that is secure. There is no magic solution… it is a process.
And that is exactly what this site is all about. It is about creating a plan and starting a journey toward financial security. And it sure seems like making financial security a priority is not something that “sounds nice” to something that is “necessary”.