Here’s a sobering statistic: About 40% of Americans say they have b een forced into retirement, according to a survey from Edward Jones and Morning Consult, a research firm.
If this happened to you, would you be prepared?
First of all, you’d need to check your cash flow.
If you have already built an emergency fund containing several months’ worth of living expenses, you might need to tap into it.
And you may need to start withdrawing funds from your IRA and 401(k), though these withdrawals may be taxable.
Also, consider health insurance.
You might be able to continue your employer’s coverage through the COBRA laws, though this can be expensive.
As an alternative, you can check out a Marketplace plan at healthcare.gov.
Once you’re 65, you’re eligible for Medicare.
Finally, review your Social Security plans.
You can collect when you’re 62, but your checks will be much bigger if you can wait until your full retirement age, which is likely between 66 and 67, depending on when you were born
Forced early retirement can be challenging.
But by exploring the financial and health insurance options available, you might find ways to help minimize the disruption to your life.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
