Help! I’m being forced into early retirement.
Unfortunately, forced early retirement is more common than you might think.
This is especially true in 2020 with the COVID-19 pandemic leaving many Americans unemployed or uncertain about their job security.
What is early retirement?
Some people choose to retire early because they can afford it. Others might not have a choice. In 2020 alone, many of our clients were confronted with layoffs, severance packages, or concerns about health issues.
What should I do?
You might not have a choice. Your employer may simply eliminate your position or even the entire department. If you do have a say in the matter, here is the process you should follow:
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- Educate yourself.
Understand all your options and their consequences. Ask questions and take notes. Learn the implications and consequences of choosing one option over the other. You need to have all the facts when making a decision.
Most of the time, decisions about retirement are permanent. If you accept a severance package, chances are your employer will not hire you back.
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- Work with a Fiduciary Financial Advisor.
Find an experienced professional and talk through your options. They might recommend a hybrid approach you haven’t thought of. They can even brainstorm questions to ask before challenges arise.
A Fiduciary Advisor might also help you plan for outside factors like Social Security and health care costs. Unfortunately, rising health care premiums and taxes can leave you with less income to spend.
Remember, it’s not about how much you make. Rather, it’s about how much you keep after all expenses and taxes are paid.
It’s important to work with someone who is experienced and can help you find the right option for you and your family.
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- Put your plan into motion.
It can be scary to take the leap, but if you’ve done your due diligence and follow your plan, you will have peace of mind knowing you’re protecting your family. Your plan is like a roadmap, giving you a clear picture of where you’re going.
Don’t forget to check-up on your plan too. Life changes quickly and can impact the success of your retirement.
Try to stay positive.
These are trying times and you might be forced into a decision you didn’t want to make.
Having a solid plan in place will not only ease the stress and anxiety of retiring early, but it will also help you make wise decisions during uncertain times.
You deserve to enjoy your retirement. After all, you’ve earned it.