20 years and counting

I retired in 2006, almost 19 years ago. I worked on and off for another 8 years for pay but stopped working for pay in 2014, so this is my 10th year in full retirement. It's worth considering that your retirement may last far longer than your job. According to the Bureau of Labor Statistics (BLS), as of January 2020, the average number of years an employee stayed in their role was 4.1 years. Retirement is when you choose what you do with your time and enjoy yourself. Getting yourself ready for retirement and transitioning into that stage of life slowly is crucial so that you can feel in charge and act when the time feels right for you. However, the reality is that you don’t always get to choose when you retire. Many people, like my wife, were sort of pushed into it, and I went along for the ride.

A recent survey out of Australia showed that about 33% of retirees retired by choice. About 28% of retirees had to leave work because of health problems, and 7% had to retire because their partner was dealing with health issues, which was the situation my wife and I faced. Another 11% retired when they got laid off, 4% felt they weren't wanted at work anymore, and another 18% had different reasons for retiring.

So, why does this matter? Well, it means planning for retirement by choice isn't something you should put off. You have to start thinking and planning early, knowing you have a plan but also recognizing that things might not all go according to that plan.

What steps can you take if you’re worried about being forced to retire early? Here are some sensible steps to consider: 

1.     Start saving and investing early in retirement accounts.

2.     Develop multiple income streams for financial security.

3.     Consider healthcare costs and insurance options.

4.     Create a budget and stick to it to manage expenses.

5.     Stay informed about retirement benefits and options from your employer or government.

6.     Continuously reassess your retirement goals and adjust your plan accordingly.

7.     Stay active physically, mentally, and socially for a fulfilling retirement lifestyle.

8.     Plan for unexpected expenses or emergencies with an emergency fund.

9.     Seek professional financial advice to optimize your retirement plan.

10.   Stay flexible and adaptable to changes in your retirement circumstances.

By following these steps, you can better prepare yourself for retirement, whether it comes by choice or necessity, and ensure a more secure and fulfilling future.