Unexpected job loss or health issues force early retirement, straining savings for nearly half of Americans, Allianz research shows.
A new Allianz Center for the Future of Retirement study reveals 42% of Americans retire earlier than planned, while only 5% retire later. The findings highlight a gap between expectations and reality, as 53% of Americans target a specific retirement age but face disruptions like job loss or health problems.
Most respondents believe working longer would secure their financial future, with 80% viewing delayed retirement as a solution to savings shortfalls. However, unforeseen circumstances such as caregiving responsibilities or healthcare issues often derail these plans, reducing working years and increasing retirement duration.
The study underscores the risk of overestimating job and health stability, which can turn retirement plans fragile. Early retirement, particularly when unplanned, pressures savings as individuals face longer retirement periods without additional income.