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Retirement is supposed to be a milestone you plan for, not one that gets thrust upon you.
Yet a recent MassMutual survey found that while 63 is the ideal retirement age according to both retirees and pre-retirees, many workers are forced out years earlier than expected (1).
Some companies push older workers out before they’re ready, often in subtle ways. A generous severance package might seem like an enticing nudge toward retirement. In other cases, the push is more insidious — reassigning experienced workers to menial tasks, making them feel miserable or undervalued until they quit on their own.
If you’re being forced out of your job and into retirement, 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 sooner than planned. Among them, 43% cited job loss, organizational changes or retirement buyouts as the cause (2).
While any 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 Retiring, Dr. Riley Moynes outlines the four phases of retirement — but when retirement isn’t your choice, these phases can take on a different shape (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 start to miss the sense of purpose and structure their jobs gave them. Establishing a routine — whether through volunteering, hobbies or regular outings — can help. Even something as simple as breaking up errands 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 may 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 Reinvest and Rewire Phase: This is where many retirees find their stride, controlling what they want their post-career life to look like. Whether it’s strengthening relationships, finding new social circles or diving into passion projects, this phase is about shaping your retirement on your own 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 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 penalties. 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) penalty-free.
Investing well can also play a significant role in retirement. For instance, safe-haven assets like gold can help provide financial security during your golden years. Gold — which has surged by about 60% so far this year (6) — is seen as a resilient store of value, especially during volatile economic times.
While gold’s market value has experienced dips in recent weeks, some analysts think the bullish trend should continue. JPMorgan predicts the price of the yellow metal will average $5,055 per ounce by the end of 2026.
“Gold remains our highest conviction long for the year, and we see further upside as the market enters a Fed rate-cutting cycle,” Natasha Kaneva, Head of Global Commodities Strategy at JP Morgan, said (7).
You can open a self-directed gold IRA with the help of Thor Metals — combining the tax advantages of a retirement account with the recession-resistant properties of gold.
Get started in just three simple steps to begin enjoying tax-deferred growth on your investments. And if you’d like to convert an existing IRA into a gold IRA, Thor Metals offers 100% free rollover, as well as free shipping and free insurance.
Even better, you could receive up to $20,000 worth of free silver on qualifying purchases and a free gold IRA quick start guide when you sign up.
You can claim benefits as early as 62, but doing so reduces your monthly payout for life. If you have savings, delaying until full retirement age (67 for those born in 1960 or later) could be the better move.
If you’re unsure about which option is best, a financial advisor can help you figure out the right time to claim benefits so that you’re not leaving money on the table. And if your nest egg looks thin, they can also help put your money to work more efficiently.
A study by Natixis Investment Managers’ 2025 Global Retirement Index found that 69% of retirees felt the most helpful move they made to strengthen their financial security during 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.
Advisor.com’s network consists of fiduciaries, so they’re legally obligated to act in your best interest.
You can set up a free, no-obligation interview with your top matches to assess the right fit for you.
Medicare coverage doesn’t begin until age 65, and the 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 having at least six to twelve months’ worth of savings set aside can help you handle them stress-free.
According to a recent Bankrate survey, nearly one in three Americans tapped into their emergency savings at some point in the past year, and 80% of those instances were for essential expenses (9).
A sizable emergency fund can ensure you don’t have to liquidate your portfolio during an emergency, allowing your retirement accounts to keep growing. But leaving such a significant amount of money sitting in a checking account earning zero interest isn’t ideal either, as it will lose money to inflation over time.
To avoid this, you could 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 — over 10 times higher than the 0.40% average offered by big-name banks (10).
SoFi won’t charge you any account fees and has no monthly maintenance costs or minimum balance requirements.
The best part? You can get up to $300 when you sign up with SoFi and set up a direct deposit.
Early retirement might mean trimming expenses. But remember, once Social Security benefits start, your financial situation could improve. In the meantime, adjusting your lifestyle can help ease the blow of a lack of income before full benefits kick in.
That’s where budgeting apps like Rocket Money can simplify the process, and help you get a clearer picture of your future.
Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and 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.