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Retirement is supposed to be a milestone you plan for, not something you stress about.
Yet a recent MassMutual survey found that 63 is the ideal retirement age according to both retirees and pre-retirees, forcing many workers years earlier than expected (1).
Some companies push older workers out before they’re ready, often in subtle ways. A generous severance package may seem like an attractive nudge toward retirement. In other cases, the push is more insidious—reassigning experienced workers to menial tasks, making them feel unhappy or undervalued until they quit on their own.
If you are being forced into your job and retirement, the transition can be overwhelming. But understanding the challenges—both emotional and financial—can help you cope.
The 2024 TransAmerica survey found that 58% of retirees left the workforce sooner than planned. Of those, 43% cited job losses, organizational changes or retirement purchases as reasons (2).
When it comes to any retirement adjustment, an unexpected person can feel like a gut punch. In his book The Four Stages of Retirement: What to Expect When You RetireDr. Riley Moines outlines four stages of retirement—but when retirement isn’t your choice, these stages can take a different shape (3).
1. Holiday stage: Usually, this is when retirees enjoy their newfound freedom. But if you’re not ready to leave, it can feel like anything but a vacation. Focus on self-care, and if possible, take a real trip to clear your mind.
2. The missing step: Many retirees begin to lose the sense of purpose and structure that their work gave them. Establishing a routine — whether through volunteering, hobbies or regular outings — can help. Even something as simple as breaking down tasks can create a sense of structure.
3. Trial and error phase: This is when retirees explore new things and realize that not everything will be fun. For example, you might decide to sign up for a pickleball league only to realize you’re not a fan of the sport. Don’t look at it as a failure, but rather as an experiment.
4. Reinvestment and reattachment phase: This is where many retirees find their stride, taking control of what they want their post-career life to look like. Whether it’s strengthening relationships, finding new social circles or diving into passion projects, this phase is about shaping your retirement on your own terms.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich).
According to Transamerica (4), only 21% of workers who retired early did so because they were financially prepared. In fact, many older Americans struggle with retirement savings—the Federal Reserve estimates that average retirement savings for 55- to 64-year-olds was just $185,000 as of 2022 (5).
If you’re facing an unexpected retirement, here’s how to manage your finances:
Identify which funds you can easily access without penalty. IRA and 401(k) withdrawals before age 59 and a half typically incur a 10% penalty, but if you quit your job at age 55 or later, you may be able to tap into that employer’s 401(k) penalty-free.
Good investments can also play an important role in retirement. For example, safe-haven assets like gold can help provide financial security during your golden years. Gold – which is up nearly 60% so far this year (6) – is seen as a resilient store of value, especially during volatile economic times.
Although gold market prices have experienced declines in recent weeks, some analysts believe that this bullish trend should continue. JP Morgan forecasts the yellow metal to reach $5,055 an ounce by the end of 2026.
“Gold remains our highest confidence for the year, and we see further upside as markets enter the Fed rate cut cycle,” said Natasha Caneva, head of global commodity strategy at JP Morgan (7).
You can open a self-directed gold IRA with the help of Thor Metals – combining the tax benefits of a retirement account with the recession-proof properties of gold.
Get started in just three simple steps to start enjoying tax-deferred growth on your investments. And if you want to convert an existing IRA to a gold IRA, Thor Metals offers a 100% free rollover, plus free shipping and free insurance.
Even better, you can get up to $20,000 in free silver in qualifying purchases and a free gold IRA quick start guide when you sign up.
You can claim benefits as early as age 62, but doing so will reduce your lifetime monthly payments. If you have savings, delaying until full retirement age (67 for those born in 1960 or later) may be a good move.
If you’re not sure which option is best, a financial advisor can help you figure out the right time to claim benefits so you don’t leave money on the table. And if your nest egg looks thin, it can help put your money to work more efficiently.
A study by Natixis Investment Managers’ 2025 Global Retirement Index found that the most helpful step 69% of retirees took to strengthen their financial security during retirement was to work with a financial advisor (8).
You can find an SEC/FINRA-registered financial advisor near you through Advisor.com.
Just answer a few basic questions about yourself and your financial goals, and Advisor.com will comb through an extensive network of experts to find your perfect match.
Advisor.com’s network consists of fiduciaries, so they are legally bound to act in your best interest.
You can set up a free, no-obligation interview with your top match to assess the right fit for you.
Medicare coverage doesn’t begin until age 65, and Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, while an option, can be expensive. Depending on your age, buying a plan through the health insurance marketplace may make more sense, especially if you need coverage for more than 18 months until Medicare kicks in.
When you know retirement is on the horizon, it’s more important than ever to establish a rainy day fund that can cover unexpected expenses. Life has a way of throwing curveballs—from a sudden leaky roof to unexpected medical emergencies—and setting aside at least six to twelve months of savings can help de-stress them.
According to a recent Bankrate survey, nearly one in three Americans tapped into their emergency savings at some point in the past year, and 80% of those cases were for essential expenses (9).
A large emergency fund can ensure you don’t have to deplete your portfolio during an emergency, allowing your retirement accounts to grow. But it’s also not advisable to leave such a significant amount sitting in a checking account that earns zero interest, as it will lose money to inflation over time.
To avoid this, you can put it in a high-yield account like SoFi’s high-yield checking and savings account, where you can earn up to 4.30% APY on your emergency fund — more than 10 times the 0.40% average offered by big-name banks (10).
SoFi doesn’t charge you any account fees and has no monthly maintenance costs or minimum balance requirements.
The best part? You can get up to $300 when you sign up with SoFi and set up direct deposit.
Early retirement can cut expenses. But remember, once Social Security benefits start, your financial situation may improve. In the meantime, adjusting your lifestyle can help cushion the shock of a loss of income before full benefits begin.
Budgeting apps like Rocket Money can help simplify the process and help you get a clearer picture of your future.
Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can also unlock forgotten subscriptions, helping you cut unnecessary costs and save you hundreds annually.
For a small fee, the app can negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.
We rely only on vetted sources and reliable third-party reporting. For details, see our editorial ethics and guidelines.
Collective Mutual (1); Transamerica ([2]4); Amazon (3); Federal Reserve (5); Business Standards (6); Reuters (7); 401K Specialist (8); Bankrate (9); Federal Deposit Insurance Corporation (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
