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Retirement is supposed to be an important step that you plan for, not one that you throw at yourself.
However, a recent MassMutual survey found that while 63 is the ideal retirement age according to both retirees and pre-retirees, many workers are laid off years earlier than expected (1).
Some companies push older workers before they are ready, often in subtle ways. A generous severance package can seem like a tempting push toward retirement. In other cases, the push is more insidious — experienced workers are reassigned to menial tasks, making them feel miserable or undervalued until they quit on their own.
If you are being forced out of your job and retiring, the transition can be overwhelming. But understanding the challenges — both emotional and financial — can help you cope.
A 2024 Transamerica survey found that 58% of retirees left the workforce earlier than planned. Among them, 43% cited job losses, organizational changes or retirement purchases as the cause (2).
While every retirement comes with adjustments, an unexpected one can feel like a gut punch. In his book The Four Phases of Retirement: What to Expect When You’re RetiringDr. Riley Moynes describes the four phases of withdrawal – but when withdrawal is not your choice, these phases can take a different form (3).
1. The Vacation Phase: Typically, this is when retirees enjoy their newfound freedom. But if you weren’t ready to leave, it might feel like anything but a vacation. Focus on self-care, and if possible, take an actual trip to clear your mind.
2. The Lost Phase: Many retirees begin to lose the sense of purpose and structure their work gave them. Establishing a routine — whether through volunteering, hobbies or regular outings — can help. Even something as simple as breaking down assignments can create a sense of structure.
3. The Trial and Error Phase: This is when retirees explore new things and realize that not everything will be fun. For example, you might decide to sign up for 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. The reinvestment and rewiring Phase: This is where many retirees find their stride, controlling what they want their post-career life to look like. Whether you’re strengthening relationships, finding new social circles or diving into passion projects, this phase is about shaping your retirement on your terms.
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Only 21% of workers who retired early did so because they were financially prepared, according to Transamerica (4). In reality, many older Americans struggle with retirement savings – the Federal Reserve found that the median retirement savings for those aged 55 to 64 was just $185,000 as of 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 and a half typically incur a 10% penalty, but if you leave a job at 55 or later, you may be able to tap into that employer’s 401(k) without penalty.
Good investing can also play a significant role in retirement. For example, safe assets like gold can help provide financial security during your golden years. Gold – which is up about 60% so far this year (6) – is seen as a resilient store of value, especially in volatile economic times.
While the value of the gold market has experienced a decline in recent weeks, some analysts think that 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 long-term top conviction for the year, and we see more 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 the help of Thor Metals — which combines the tax advantages of a retirement account with the recession-proof properties of gold.
Get started in just three simple steps to start enjoying tax-deferred growth on your investments. And if you’d like to convert an existing IRA to a gold IRA, Thor Metals offers 100% free rollovers, as well as free shipping and free insurance.
Even better, you can receive up to $20,000 of free silver on qualifying purchases and a free gold IRA quick start guide when you sign up.
You can claim benefits from age 62, but doing so will reduce your lifetime monthly payment. If you have savings, delaying until full retirement age (67 for those born in 1960 or later) may be the best 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 egg looks thin, they can also help make your money work more efficiently.
A study from 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 in retirement was working 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 comb through its extensive network of experts to find your perfect match.
The Advisor.com network consists of fiduciaries, so they are legally obligated to act in your best interest.
You can set up a free, no-obligation interview with your best matches to assess what’s right for you.
Medicare coverage does not 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 until Medicare kicks in.
When you know retirement is on the horizon, it’s more important than ever to set up a rainy day fund that can cover unforeseen expenses. Life has a way of throwing curveballs — from a sudden leaky roof to an unexpected medical emergency — and setting aside at least six to twelve months of savings can help you handle 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 instances were for essential expenses (9).
A sizeable emergency fund can ensure that 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 that earns zero interest isn’t ideal either, as it will lose money to inflation over time.
To avoid this, you can keep it in a high-yield account like SoFi’s high-yield checking and savings account, where you can earn up to 4.30% APY on your emergency fund – more than 10 times higher than the average 0.40% offered by big banks (10).
SoFi doesn’t 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 direct deposit.
Early retirement can mean trimming costs. But remember, once Social Security benefits begin, your financial situation may improve. In the meantime, adjusting your lifestyle can help soften the blow of a lack of income before the full benefits kick in.
That’s where budgeting apps like Rocket Money can simplify the process, helping you get a clearer picture of your future.
Rocket Money tracks and categorizes your expenses, providing a clear picture of your money, credit and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and potentially save you hundreds each year.
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 rely only on verified sources and credible reporting from third parties. For details, see our ethics and editorial guidelines.
MassMutual (1); Transamerica ([2]4); Amazon (3); Federal Reserve (5); Business Standard (6); Reuters (7); 401KSpecialist (8); Bankrate (9); Federal Deposit Insurance Corporation (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
