A new report from Sun Life Financial indicates that 22 percent of all American retirees are being forced to retire before they had planned, leaving them short of their financial goals.
The report also showed that 69 percent of respondents have changed their retirement plans by reducing expenses and adjusting their lifestyles to accommodate for their new status. 55 percent said they were ineligible for Social Security benefits when they were forced to leave the workforce.
The causes of the forced retirement included layoffs or downsizing (44 percent), personal illness (32 percent), and injury (14 percent). A higher percentage of women claimed family obligations as a reason than men.
In order to compensate for the early retirement, the report also showed that 43 percent were dipping into social security before they wanted to, while 47 percent engaged in fewer vacations and social activities, and 61 percent made reductions in their expenses.
Said Mary Fay, vice president and general manager of Annuities of Sun Life Assurance Co. of Canada: “It appears that unanticipated, forced retirement is occurring at an alarming rate, leaving the impacted retirees unprepared.”
