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Retirement should be a milestone you plan for, not one forced upon you.
However, a recent MassMutual survey found that while 63 is the ideal retirement age for both retirees and early retirees, many workers are being forced to leave years earlier than expected (1).
Some companies push older workers before they’re ready, often in subtle ways. A generous severance package might seem like an enticing nudge toward retirement. In other cases, the drive is more insidious—reassigning experienced workers to menial tasks, making them feel unhappy or undervalued until they quit on their own.
If you are forced to leave your job and retire, the transition can be overwhelming. But understanding the challenges—both emotional and financial—can help you cope.
A 2024 Transamerica survey found that 58 percent of retirees left the workforce earlier than planned. Among them, 43% cited the loss of jobs, organizational changes or retirement as the reason (2).
While any retirement comes with adjustments, an unexpected one can feel like a punch in the gut. In his book The Four Phases of Retirement: What to Expect When You RetireDr. Riley Moynes outlines the four phases of retirement—but when retirement isn’t your choice, these phases can take a different form (3).
1. The holiday phase: This is usually when retirees enjoy their newfound freedom. But if you weren’t ready to go, it might feel like anything but a vacation. Focus on self-care and, if possible, take an actual trip to clear your mind.
2. Lost phase: Many retirees begin to lose the sense of purpose and structure that their jobs gave them. Establishing a routine – whether through volunteering, hobbies or regular outings – can help. Even something as simple as breaking tasks down can create a sense of structure.
3. Trial and error phase: This is when retirees explore new things and realize that not everything is going to be fun. For example, you may decide to join a pickleball league only to realize you’re not a fan of the sport. Don’t see it as a failure, but rather as an experiment.
4. Reinvestment and rewiring phase: This is where many retirees find their stride, controlling 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 retirement on your own terms.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
Only 21% of workers who took early retirement did so because they were financially prepared, according to Transamerica (4). In reality, many older Americans are struggling with retirement savings—the Federal Reserve found that the median retirement savings for those ages 55 to 64 was just $185,000 in 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 1/2 typically carry a 10% penalty, but if you leave a job at age 55 or later, you may be able to access that employer’s 401(k) penalty-free.
Investing well can also play an important role in retirement. For example, safe haven assets such as gold can provide you with financial security during your golden years. Gold – which is up around 60% so far this year (6) – is seen as a resilient store of value, especially during volatile economic times.
While the market value of gold has seen declines in recent weeks, some analysts believe the bullish trend should continue. JPMorgan predicts that the price of the yellow metal will average $5,055 per ounce by the end of 2026.
“Gold remains our biggest belief throughout the year and we see further upside as the market enters a Fed rate cut cycle,” said Natasha Kaneva, Head of Global Commodity Strategy at JP Morgan (7).
You can open a self-directed gold IRA with Thor Metals — combining the tax advantages of a retirement account with the recession-proof properties of gold.
Get started in just three easy 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 100% free rollover, as well as free shipping and free insurance.
Even better, you can get up to $20,000 worth of free silver on qualifying purchases and a free gold IRA quickstart guide when you sign up.
You can claim benefits as early as age 62, but this reduces your monthly payment for life. If you have savings, delaying until your full retirement age (67 for those born in 1960 or later) might be a better move.
If you’re not sure which option is best, a financial advisor can help you find the right time to claim benefits so you don’t leave money on the table. And if your nest eggs are looking thin, they can also help you put your money to work more efficiently.
A study by Natixis Investment Managers’ 2025 Global Retirement Index found that 69% of retirees felt that the most helpful move they made 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 search through its extensive network of experts to find your perfect match.
The Advisor.com network consists of fiduciaries, so they are legally bound to act in your best interest.
You can schedule a free, no-obligation interview with your best matches to evaluate the best 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 more than 18 months of coverage before Medicare starts.
When you know retirement is on the horizon, it’s more important than ever to set up a rainy day fund that can cover unexpected expenses. Life has a way of throwing curveballs—from a sudden leaky roof to an unexpected medical emergency—and having at least six to twelve months’ worth of savings set aside can help you deal with them stress-free.
According to a recent Bankrate survey, nearly one in three Americans tapped their emergency savings at some point in the past year, and 80% of those cases were for essential expenses (9).
A sizable emergency fund can ensure you don’t have to liquidate your portfolio during an emergency, allowing your retirement accounts to continue to grow. But leaving such a significant amount of money in a checking account earning zero interest isn’t ideal either, as it will lose money due to inflation over time.
To avoid this, you can keep it in a high-yield account like SoFi’s 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 the big banks (10).
SoFi will not charge you any account fees and has no monthly maintenance fees or minimum balance requirements.
The best part? You can get up to $300 when you sign up with SoFi and set up a direct deposit.
Early retirement could mean cutting back on expenses. But remember, once Social Security benefits start, your financial situation could improve. In the meantime, adjusting your lifestyle can help soften the blow of a lack of income before full benefits begin.
That’s where budgeting apps like Rocket Money can simplify the process and help you get a clearer picture of your future.
Rocket Money tracks and categorizes your spending, providing a clear picture of your cash, credit and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save hundreds annually.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool to keep your finances on track.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
MassMutual (1); Transamerica ([2]4); Amazon (3); Federal Reserve (5); Business Standard (6); Reuters (7); 401K Specialist (8); Bank rate (9); Federal Deposit Insurance Corporation (10)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
