Are you considering an early exit from the workforce and dreaming of an extended retirement?

While it may seem enticing, it's essential to recognize that a lengthy retirement can have its share of unexpected downsides. Let's explore three potential drawbacks you might have yet to consider, along with strategies to help you prepare for them.

Saving for retirement provides numerous benefits.

A substantial retirement fund can provide peace of mind, knowing you have a safety net to rely on when you retire. It alleviates concerns about financial instability and reduces stress, enabling you to enjoy your retirement years with greater peace and contentment.

2022 Spending in Retirement Survey: Understanding the Pandemic’s Impact on the Sources of Retirement Income

Similar to 2020, 7 in 10 said Social Security is a major source of income (Figure 8). Annual household income was positively related to reliance on Social Security as a major income source, where 82 percent of retirees with less than $30,000 in annual household income said Social Security is a major income source, as opposed to 45 percent of retirees with greater than $100,000 in annual household income. Additionally, those who are dissatisfied with retirement and those with poor self-reported health status (a score of 1, 2, or 3 on a scale of 1–10) are more likely to rely on Social Security as a major source of income (85 percent and 83 percent, respectively). 

2022 Spending in Retirement Survey: Understanding the Pandemic’s Impact

Overall, more than half retired earlier than expected. The most common reasons for retirement were the ability to retire from an affordability standpoint (29 percent) and having a health problem or disability not related to COVID-19 (21 percent). 

Saving money offers numerous benefits.

Enhancing Financial Security: Saving money is a financial safety net for emergencies, unexpected expenses, or income fluctuations. This can help you evade high-interest debts like credit card debts and provide financial security.

Let our financial advisors help you save more for retirement.

A financial advisor can help you create a personalized retirement plan that considers your specific financial goals, risk tolerance, and time horizon. They can also guide retirement savings vehicles such as 401(k) plans, IRAs, and annuities and help you select appropriate investments for your retirement portfolio.

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