While many working Americans believe they will retire on their own terms, the reality from those who have already retired paints a different picture. Half of the retired Americans we surveyed* said they retired earlier than expected, the vast majority doing so for reasons outside of their control, including job loss and health care issues.
This means that people could end up spending a lot more time in retirement than they had planned to, which can create an issue with their retirement income. Without a steady stream of guaranteed income in retirement to cover fixed costs, it’s likely that your money will run out sooner than you planned.
The easy answer to this is to work longer in retirement. In fact, most non-retirees think they will. But the reality is, not many current retirees are currently working at least part time, suggesting that pre-retirees shouldn’t count on that option.
So, if working longer in retirement isn’t the answer, what can people do when they are planning for a retirement that might start sooner – and last longer – than they expect? Here are three tips that can help pre- and near-retirees feel more confident, regardless of when their retirement begins: