The standard retirement age of most of the people is 65 years. But not all people are able to retire before they turn 65. Sometimes they are compelled to retire much earlier. According to a recent survey conducted by a reputed institute, it has been found out that around 68% of the employees are forced to retire before the age of 65. One-fourth people of the present workforce wish to continue working till the age of 70. However, only 7% of the employees are able to fulfill their wish.
Unplanned or sudden retirement may compel you make rapid financial adjustments. Read on to get acquainted with 4 tips that may help you deal with a forced retirement without getting into financial problems.
Tips to help you tackle an unplanned retirement
Here are the 4 tips that may assist you in tackling an unplanned retirement with competence:
1. Evaluate your savings: You should calculate your total savings first. Check whether or not it can fulfill your present financial needs. Find out whether or not you can cover all your expenses with your savings and income from various sources. Compute the money you'll earn from Social Security, retirement plans, assets, etc. If you don't have enough funds to meet your expenditures, then you'll have look for the ways to increase your income. Purchase a medical insurance if you don't have one. This will help you meet your medical expenses should you fall ill.
2. Find a job: It is true that it may be difficult for you to get a job at the age of 62 or so. But this does not mean that you'll not get a job at all. The job scenario has changed. If you are physically and mentally fit, then you can secure a new job. There are several companies who are always looking for experienced employees. Unfortunately, not many people can offer 20-25 years of experience, which perhaps you can. Now is the best time to cash-in your experience. Even if you can't obtain a new job, then you can do a part-time job.
3. Change your spending plan: You have to adjust your spending plan as per your income. May be you have intended to use only 6% of your savings in a year. However, if you can't secure a new job or your expenses exceed your income, then you need to change your lifestyle. You'll have to adjust your spending as per your means.
4. Modify your budget: If you are not interested in working anymore, then you'll have to change your budget along with your spending plan. You may have to skip summer vacation or purchase a cheap medical insurance policy. You may also move to a smaller house in a cheaper locality.
In addition to the above mentioned points, you should not claim your Social Security benefits right away. This is because you won't get much money if you claim Social Security benefit before you're 70 years old. If you have the financial resources to make your expenses comfortably, then it is better to not touch your Social Security benefits right now. This way you can get greater amount in future.