And here\u2019s the kicker: 76% of those early retirements weren\u2019t voluntary. The big reasons are exactly what you\u2019d expect \u2014 your health gives out, your employer downsizes you out the door, or a family member needs full-time care.<\/p>\n
The gap between what people plan for and what actually happens is brutal. A 2018 Urban Institute paper<\/a> found that 56% of full-time workers in their early 50s get pushed out of their jobs before they\u2019re ready to call it quits.<\/p>\n So if your retirement plan boils down to \u201cI\u2019ll just work until 67 and then figure it out,\u201d you\u2019re playing roulette with your last paycheck.<\/p>\n Here are seven specific moves to make right now, while you still have leverage.<\/p>\n 1. Build a bridge fund outside your retirement accounts<\/p>\n If you\u2019re forced to retire in your late 50s or early 60s, the worst thing you can do is start tapping Social Security or your 401(k) immediately. The first locks in a permanently smaller monthly check. The second triggers a 10% penalty before age 59\u00bd, plus income tax \u2014 though if you\u2019re forced out at 55 or later, the IRS Rule of 55<\/a> lets you tap your current employer\u2019s 401(k) penalty-free.<\/p>\n The fix: a bridge fund. That\u2019s cash and savings you can spend in the gap years between forced retirement and the age when claiming benefits actually makes sense.<\/p>\n A reasonable target is two to four years of basic living expenses, held outside your IRA or 401(k). Roth IRA contributions (not earnings) also work \u2014 you can withdraw what you\u2019ve put in anytime, tax- and penalty-free, though the Roth five-year rule<\/a> can trip you up on earnings.<\/p>\n 2. Max out the catch-up contributions \u2014 especially the \u2018super\u2019 one<\/p>\n If you\u2019re 50 or older in 2026, the IRS lets you stuff an extra $8,000 into your 401(k)<\/a> on top of the normal $24,500 limit, plus an extra $1,100 into your IRA.<\/p>\n But here\u2019s the part most people miss. If you turn 60, 61, 62, or 63 this year, your 401(k) \u201csuper catch-up\u201d jumps to $11,250 \u2014 and it\u2019s only available for those four years. Once you hit 64, it drops back to the regular catch-up.<\/p>\n If your plan offers it (not all do \u2014 ask HR), this window is the single biggest tax-advantaged savings opportunity left in the U.S. retirement code. Don\u2019t let it close without using it.<\/p>\n 3. Lock in long-term care insurance in your 50s<\/p>\n Long-term care is the single biggest threat to a forced early retirement. If you\u2019re suddenly out of work because you or your spouse needs full-time care, your savings get vaporized fast.<\/p>\n The window to buy traditional long-term care insurance closes faster than people realize. Premiums get steeply higher starting in your 60s, and you can be denied entirely if you\u2019ve developed certain conditions.<\/p>\n Mid-50s to early 60s is the sweet spot. We covered this in detail in \u201cHere\u2019s Who Actually Needs Long-Term Care Insurance \u2014 and When to Buy It<\/a>.\u201d<\/p>\n If you want to see what this type of insurance might cost, Money.com has put together a list of the Best Long-Term Care Insurance Companies<\/a>.<\/p>\n 4. Solve the health insurance gap before you need to<\/p>\n Medicare doesn\u2019t kick in until 65. If you\u2019re forced to retire at 60, you\u2019ve got five years of full-freight health insurance staring you in the face \u2014 and ACA marketplace plans for that age range can run $800 to $1,200 a month without subsidies.<\/p>\n Three things to do now: Max out a health savings account (HSA) if you\u2019re eligible, since it\u2019s the single best account in the tax code for this exact problem; understand how ACA subsidies work based on income; and find out whether your spouse\u2019s employer plan can carry you.<\/p>\n For more, see \u201c9 Ways to Cover Health Care Costs for an Early Retirement<\/a>.\u201d<\/p>\n 5. Delay Social Security as long as you possibly can<\/p>\n If you start Social Security at 62 \u2014 the earliest possible age \u2014 you\u2019ll lock in a permanent reduction of up to 30% versus your full retirement age benefit. Wait until 70, and the check is more than 75% larger than what you\u2019d get at 62.<\/p>\n