With the continued downsizing of companies, in addition to various small businesses getting bought out by major corporations, more and more baby boomers are being forced into retirement before they are ready to do so. What do you do if your company’s circumstances force you to retire early?
What Do You Do With Your Finances?
There are a few quick and easy steps to take when your company’s circumstances force you into an early retirement. Consider these options.
Don’t Claim Social Security Benefits Until You Reach Full Retirement Age
If you were born in 1960 or later, your full retirement age is 67. If you take your benefits prior to your 67th birthday, you won’t receive the full benefits that you would receive — and, indeed, are entitled to — if you held off for a few years. Depending on your health and finances, holding off on your benefits is better for you in the long run.
Review Your Investments
The older you get, the less aggressive, or risky, your investments should be. You, as an older person who is now on a fixed income, cannot afford to take a substantial hit on your finances because of a bad day on the stock market. Make sure you speak to your financial adviser about converting all of your high-risk investments into something with lower risk.
Part-Time Work Is Not a Bad Idea
Even though it may be a little difficult to find full-time paying work, part-time paying work is not only a good idea for your finances — because it gives you a small disposable income every week — it’s a good idea for your mental health. Staying busy helps keep your mind sharp.
For a Short-Term Solution, Consider Collecting Unemployment
While the laws vary from state to state, generally speaking, you are eligible to collect unemployment if you weren’t fired from your job for cause, such as insubordination. This allows you to collect a check that you can then invest wisely as you look for other work and decide on your financial future.
Whatever you decide to do with your finances, being forced into early retirement requires you to consult with a financial professional to make sure your finances are stable. For more information on how a financial professional can help you, contact us today.