A study by Voya Financial has shown that as many as sixty percent of U.S. workers who were retired stopped working due to unforeseen circumstances. "It's notable that more and more people anecdotally are not necessarily retiring just because they're moving off into the sunset and taking walks on beaches,'' says the head of retirement income and advice strategy James Nichols at Voya Financial. "Retirement for many of them is something that happens to them as opposed to something they chose. ... It's not the people who turn 62 and want to retire at 62 and do. It's the people who turned 64 and wanted to work till 68, and it didn't happen the way they wanted to.''
The survey encompassed more than a thousand recent retirees, with 29 percent of them saying that their retirement was unexpected up to a certain point. About a third says that retirement timing in their case was much unexpected. Exactly a third of those respondents said they did not leave their jobs voluntarily. The largest number of retirees left their jobs because of health issues (16 percent) and 11 people out of 100 had to retire because they were sacked.
The results of the survey indicate the need of workers to save as much as they can during their careers. "I have seen several people who have needed to retire earlier than they planned, for health problems and for other reasons. Obviously, the more one has saved, the more prepared one will be for an unexpected early retirement, so saving early and often is important,” said Ken Waltzer, a financial planner from L.A.
Posted by Julie Smith 6/8/15