Worried about having enough money in retirement? You have company. According to Gallup’s 2016 study of top financial worries in the United States, 64 percent of Americans said they’re concerned about being able to afford retirement. That’s a large enough figure to make retirement America’s No. 1 financial concern for the 16th year in a row.¹

For many workers, the prospect of running out of money during retirement is a frightening one. Rather than retire without enough money, they may opt to simply work past retirement age. By working longer you can save more money, delay Social Security and eliminate years of retirement that may have to be funded by withdrawals from your savings.

At first glance, working late into your golden years may seem like an obvious solution to a retirement shortfall. Unfortunately, it may not be a viable strategy for many seniors. While you may have every intention of working into your late 60s or even early 70s, there could be forces beyond your control that make such a plan unfeasible.

There’s nothing wrong with planning on working late into life. However, you may also want to have a backup plan in case you aren’t able to work. Think about ways to cut your spending, scale down your lifestyle and possibly save more today so you are still comfortable if you can’t continue to earn a paycheck.

Below are three common reasons why it may be difficult for you to work past retirement age:

Disability

According to the Council for Disability Awareness, nearly 25 percent of all adults in the United States will become disabled at some point in their life.² That likelihood may be even higher in retirement. The Centers for Disease Control and Prevention estimates that 60 percent of those age 65 and older have limitations or the inability to perform at least one basic living function.³

Depending on your job, it’s possible that disability could prematurely bring your career to an end. If so, you’ll likely need savings to rely upon to maintain your lifestyle.

Long-Term Care

The U.S. Department of Health and Human Services estimates that 70 percent of Americans age 65 and over will need long-term care at some point.⁴ Long-term care is extended assistance for those who can’t perform basic living functions, such as dressing, eating or bathing.

Obviously, if you need long-term care, you won’t be able to work. However, consider if your spouse needs long-term care. Will you be able to hire in-home care? Would you have to provide care for him or her? Could you provide care and continue your career? Possibly not.

Job Loss

Even if you and your spouse stay healthy, it’s still possible you may not be able to keep working. Job loss is a possibility in any industry. The economy is always changing, and the years ahead could bring challenges that aren’t imaginable today.

Often, those who are laid off in their 60s struggle to find new positions. Even though discrimination is illegal, some companies may unintentionally gravitate toward younger candidates. If you should lose your job, retirement may be the only option.

Do you have a backup plan in case you can’t keep working? If not, let’s talk about it. Contact us at Lighthouse Financial. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.

¹http://www.gallup.com/poll/191174/americans-financial-worries-edge-2016.aspx

²http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp

³http://www.cdc.gov/nchs/fastats/disability.htm

⁴http://longtermcare.gov/the-basics/who-needs-care/

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