The 1 Retirement Planning Hiccup You’re Probably Not Accounting for | Personal Finance

Many people assume that they’ll work until their mid- or late 60s, or possibly beyond. But you may not get that choice. In fact, 46% of retirees today left the workforce earlier than planned, according to a recent survey by the Employee Benefit Research Institute. And the same thing could happen to you.

You may, for example, get downsized out of a job in your early 60s and struggle to find another one. Or, a health issue could arise that prevents you from working at all. And that health issue doesn’t need to be yours. If a spouse or parent of yours falls ill, you may be called upon to provide care.

Of course, some people who retire sooner than planned do so because they can afford to — and it’s an active choice. But that may not be the case in your world, so rather than delay your retirement savings, make an effort to fund your nest egg from as young an age as possible — even if it means having to juggle other financial goals that may seem more pressing.

To illustrate the importance of saving from an early age, imagine you’re able to set aside $500 a month in a retirement plan once you turn 40, with the goal of retiring at 67. If you manage to do so for 27 years and your retirement plan delivers an average annual 7% return (which is doable if you load up on stocks), you’ll end up with about $447,000.