BOSTON (Reuters):
MANY AMERICANS are being forced to retire before they want to and most haven't saved enough money to sustain them after the paycheques stop arriving, according to a survey released on Tuesday.
The Prudential Financial Inc. study shows that careers are often cut short by unexpected events, leaving workers worse off financially. Many studies have already found that Americans tend to leave saving for retirement until the last minute.
Four in 10 respondents said they were forced to retire and most of them were under 60 years old, well below the average U.S. retirement age, the study found.
The primary reasons for early retirement included corporate layoffs, injuries and other health problems, as well as family emergencies. Among those forced out early, nearly two-thirds said they were not adequately prepared for life after the job.
PLANNING FOR RETIREMENT
"Our new research shows that Americans don't get serious about planning for retirement until they reach their 50s. And even then, more than half focus primarily on short-term financial goals," John Strangfeld, vice chairman at Prudential Financial, said in a statement.
Most Americans who are forced to retire early hope real estate holdings can support them later on. But the survey found that more than half of these people don't own their homes outright and are still making mortgage payments.
Also more than 50 percent of those who lose their jobs early did not contribute to retirement accounts like 401(k) accounts often sponsored by employers.
People who did not start saving in time often find they enjoy life less in their golden years because they are worried about money. "This sense of financial unpreparedness can diminish a retiree's perceived quality of life, including their emotional well-being, overall health, activity level and family responsibilities," the survey found.
