How To Know If You Are Condemned To A Late Retirement

Some people want to retire early, while others are happy to retire when they are ready. However, quitting your job and heading down the road to retirement may be out of your hands. It is a fact that many individuals do not want to continue working well into their seventies. Having to work longer means less time to pursue your lifelong passions.

There are ways to prevent a late retirement. The first step is knowing where you stand. If you exhibit these three indicators, you may not be going down the road of retirement any time soon.

#1 You do not have significant savings.

If you cannot accumulate sufficient funds, you may be obliged to continue working longer. If you don’t want to work longer, improve your savings rate as soon as possible. This may entail increasing your monthly contributions to your IRA or 401(k) from $50 to $100.

So focus on contributing more to your retirement plan. Moreover, consider how you are investing your money. If you invest in conservative assets, such as bonds, you may be impeding the growth of your nest egg. On the other hand, investing in stocks might help your funds grow so you can retire when you want. Considering hiring a financial advisor, they charge a minimal fee but can usually help increase your money by up to 8%.

#2 You are not eligible for a substantial Social Security payout.

Many retirees become dependent on Social Security following the conclusion of their jobs. But, if you are not anticipating such a substantial gain, you may need to work longer to delay applying for additional money.

There is another alternative, though, and that is to increase your income.

Hence, the higher your income, the greater your Social Security retirement payout will likely be. There are other ways to get more money from Social Security than getting a raise at your main job. Consider engaging in a side hustle. As long as you report that income (which you have to do anyway), it will be used to figure out how much Social Security you will get in the future.

In addition, a side gig might make it easier to increase funds. In any case, this is a win.

#3 You have not set aside any savings for future healthcare expenses.

Many seniors discover that their highest monthly cost is healthcare. But if you do not try to prepare for it, you may need to work longer to save more in your IRA or 401(k) in the future.

A better bet? Contribute annually to an HSA (health savings account) if your health insurance plan is compatible with such an account.

If you can regularly contribute to an HSA account, invest the money, and leave it alone throughout your working years. The account will help alleviate worries about healthcare in retirement. In turn, this might lead to an earlier retirement.

Late retirement is not always bad, especially since Americans are living longer than ever. But if you wish to prevent this destiny, you should increase your savings rate, set aside funds for healthcare, and do everything you can to supplement or increase your monthly Social Security income.