Being forced into early retirement can be a very distressing situation, particularly if you don’t feel financially prepared to do so. If you find yourself retiring earlier than you expected, there are a lot of things that you will need to consider. Here are a few things that you can do to help you to better handle a forced early retirement.
Look into Early Retirement Account Access
If you are realizing that you might be forced into early retirement, one of the first things that you should do is to look into early retirement account access. Early retirement account access, more commonly known as the rule of 55, allows you to make withdrawals without being penalized. This is possible if you roll over your older IRA investments and 401ks and put them into your present 401k. Since you’ve likely been saving in these investment forms for years, it is important that you figure out how to access them earlier than is usually expected.
Find New Sources of Income
One of the next steps that you should take is to find new sources of income that can support you in your early retirement. Some early retirees find small side jobs or part-time work that they enjoy to have some income in their retirement. However, this could be difficult for you if you were forced into your retirement due to injury. One great source of income for injured individuals comes from disability benefits. Remember, of course, that you generally have to wait six months before receiving disability benefits.
Talk to a Professional
Being forced into retirement can be confusing and stressful. It can be difficult to know how to move forward with your finances. Talking to a financial professional can help you to know how to handle your current situation and how to move forward. They may give you valuable suggestions like knowing when to take out your social security benefits, or whether or not to convert your traditional IRA to a Roth IRA. A financial professional will be able to help you to consider your current financial state and needs, and how you should proceed with future financial needs in mind.
If you find yourself being forced into early retirement, don’t panic. There are many systems in place that can help you to handle your current and future financial situations with ease. Even though you might feel overwhelmed and abandoned, there are many people and programs that can help you in your time of need.
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