It will Cost You to Retire Too Early

“I want to retire early! I’m going to work overtime and put everything I can towards my retirement.”  

Does this remind you of someone? Maybe even yourself? We have intentions set really high and sometimes we actually meet them.

A study found that 50% of people are retiring about 3 years too early. When you initially read that, you might think, “Three years won’t make that big of a difference.”

Oh but it does! You know the drill; You’ll miss years of money going in PLUS the compounding interest. It makes a big difference.

“17% percent of workers say they plan to retire between the ages of 60 and 64, although 38 percent of retirees say they retired in that age range. This difference between workers’ expected retirement age and retirees’ actual age of retirement suggests that a considerable gap exists between workers’ expectations and retirees’ experience.”

The reality is, as workers are preparing to cross the finish line to retirement, they are facing the unexpected. A family member fell ill, they are ill or needing disability, hardships, layoffs and shifts in the market.

Long term medical expenses are on the rise, and in retirement, your medical costs are unpredictable. No wonder we’re stressed about the topic of retirement!

Based on this graph, you can see that retirement expectations are all over the board!

Peace in retirement comes from making an educated decision about how much you need and when you can retire. A retirement plan advisor is a must have in your life!

Prenger & Profitt are your retirement plan advisors with extensive experience and knowledge in retirement planning. Contact us today!