Retiring Earlier Than Planned: What Matters Most?

Feb 22, 2019 / Amanda Chase, Horsesmouth Assistant Editor

Many people have all the best intentions of working longer and delaying claiming Social Security. But more than a third of older workers retire earlier than planned. The question is, why? This Center for Retirement Research brief looks into the most common factors.

This study looks at: 1) the impact of unexpected changes in health, employment, family, and finances on early retirement; and 2) the prevalence of these shocks.

The findings suggest that:

  • Health shocks play the largest role, mainly because they are also widespread.
  • Job loss without finding a new job, while not as prevalent, is also important.
  • Family transitions have a modest impact, while financial shocks appear to have little effect.

A key caveat is that all the shocks combined explain only about a quarter of earlier-than-planned retirements, so clearly other factors are also at play.

 

IMPORTANT NOTICE
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