Even if you plan to work for many more years, something might arise that means you have to retire sooner than you think.
Some early retirements are a good thing, while others are unwelcome, especially if you want to continue working.
So, before you map out retirement, here are a few things to take into account that could change your plans and help you retire faster.
Job loss
Some people find the decision about when to retire is taken out of their hands. For example, layoffs can happen as a result of a downturn in the economy, a merger, or other cost-cutting measures.
So, prepare for the possibility, particularly if your company is facing economic challenges. It might be wise to add a little more money to an emergency fund or retirement portfolio.
Family changes
Different types of family changes can affect your retirement plans.
Perhaps your children have all graduated from college, which might mean your extra money no longer is going to tuition. That can speed up retirement.
Or, perhaps an elderly parent needs financial help, which could slow down the journey to your golden years.
Health issues
As you get older, there is the possibility of health issues getting in the way of your ability to work. Perhaps you have a physically demanding job that you can no longer carry out.
Or, maybe you have a medical issue that prevents you from putting full effort into your work.
If this causes you to retire, check to see if you qualify for programs such as Medicare or Medicaid that can help reduce healthcare expenses.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Caring for a loved one
Sometimes, health issues don't affect you, but rather someone you love. You may have to retire a bit earlier than expected to care for that person.
Depending on the care needed, you may have to dip into an emergency fund to pay for medical bills and other treatments.
So, see if there are ways you can add additional cash to your emergency fund now in case a need for medical care arises later.
Age discrimination
While age discrimination is illegal, it still exists.
For example, if your company is laying off a slew of workers, you may be included in the group, even if you aren’t told that age is a factor in why you are being included in the layoff.
Trending Stories
Pursuing new things
Have you found a way to make extra money with a hobby or side hustle? You may want to consider retiring early to take on that new project full-time.
Do some research and find ways to estimate your potential income before you quit your current position to pursue something else.
Good investment strategy
A sound investment strategy — particularly over decades of work — can lead to a happy early retirement.
Remember to check your portfolio regularly, and consider talking to a financial planner to help you navigate a strategy.
The goal is to have a big nest egg that can supplement your Social Security once you have stopped working.
Unhappiness
Sometimes, a job just doesn’t turn out the way you expected. If you have saved enough money, unhappiness on the job is a perfectly acceptable reason to retire earlier than planned.
Quitting your job may be worth it for your mental health, as it can give you a more positive outlook on life.
Once-in-a-lifetime events
Since the start of the COVID-19 pandemic, millions of older Americans have retired as part of the Great Resignation. Some decided to retire early instead of staying in the pandemic workforce.
While there may not be another once-in-a-lifetime pandemic shortly, other unexpected events could drastically change your retirement outlook.
A major event could make you reassess your career and perhaps inspire you to get out of the workforce earlier than you expected.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Workplace changes
It’s not uncommon for a company to announce it is moving offices to another location.
Perhaps your employer has told you that your position is going to move to a new office, or your company is moving to headquarters in another state.
Moving can be a hassle for employees, and there are reasons why you may want to retire instead of going somewhere else. If you’re already close to retirement, it could be wise to retire instead of starting over in a new location.
Bottom line
Anticipating changes — both good and bad — can help you better prepare for retirement and adjust plans as needed.
For example, you might want to find ways to make extra money now in case something unexpected forces you to quit working prematurely.
Even if retirement is many years away, preparing for your golden years now almost certainly will pay off down the road.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.