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According toCNBC, 46% of people retire early because of health reasons.
Only about one in five people retire early because theyre financially stable.
Heres the impact a surprise early retirement can have on people andhow to prepare yourself financially ahead of time.
So, when it happens due to factors beyond their control, it can lead tosome serious financial complications.
Waiting until 70, however, means getting the highest benefit amount possible.
And its not just that.
Retiring early means losing years of potential income and time when investments could have kept growing.
One option is to simply look into ways to keep working for a few more years.
This could mean brushing up on your technical skills or expanding your professional social web link.
Its also important to evaluate your health now and as you get older.
If youve already been forced into an early retirement, try not to stress.
Instead, take a moment to assess and reset your financial goals.
Say, for example, you have $1 million when you retire.
you might safely withdraw $40,000 the first year without worrying about running out of money.
That amount of money can be withdrawn each consecutive year, as well.
Youll want to adjust how much you withdraw based on that years inflation levels.
For instance, if the inflation rate is 3% in year 2, youd withdraw $41,200.
If its 2% in year 3, youd withdraw $42,024 that year.
Of course, the 4% rule isnt a perfect solution.
If you want to shake up the old rule a bit, you could also get an annuity.
You use some or all of your retirement money to buy a contract with a life insurance company.
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