Report Recommends Guarding Against Retiring Earlier Than Expected

The report also found that the idea of transitioning into retirement—often cited as an expectation as a way to supplement retirement income—may not be realistic. Just nine percent cut back working hours and just 8 percent work in a different capacity that is less demanding. Image: Snapshot freddy/Shutterstock.com

Just above half of retirees in a survey by the TransAmerica Center for Retirement Studies said they retired sooner than they had planned, most commonly for job-related reasons, while the nearly one-tenth who retired later than they had planned mostly cited financial need to keep working.

It said that of the 52 percent who retired earlier than they had planned, the most common reasons related either to the job—organizational changes, job unhappiness, job loss, and retirement incentive/buyout—or personal health reasons such as ill health or disability.

Among the 7 percent who retired later than planned, “most did so for financial reasons including the need for income . . One in five retirees (19%) continued working as long as possible until they could no longer work anymore.” Other common factors for delaying retirement were “healthy aging-related reasons such as enjoying their work, staying active and keeping their brain alert.”

“Retirees’ circumstances surrounding when and how they retired exemplify common risks: health issues, employment issues, and a lack of financial preparedness. Their experience illustrates the imperative for people in the workforce to focus on maintaining good health, keeping pace with competitive job skills, and financial planning. Retirees’ experiences also underscore the need for contingency plans if forced into retirement sooner than expected,” it said.

The report also found that the idea of transitioning into retirement—often cited as an expectation as a way to supplement retirement income—may not be realistic. Just nine percent cut back working hours and just 8 percent work in a different capacity that is less demanding.

Also making it difficult to earn in retirement, it said, is that the likelihood of becoming a caregiver to a parent or other family member increases. While just 14 percent said they had performed such a role before retirement, 36 percent said that they currently are caregivers or have been since retirement.

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See also,

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