According to research conducted by the Australian Securities and Investments Commission (ASIC), these are the top seven triggers causing Australians to retire earlier than they expect. In no particular order, they are:
A health scare can often put life into perspective, and for many older Australians a serious illness can prompt the shift into retirement. Often the decision is driven by a desire to relax and enjoy the rest of life, but some retire because the illness leaves them too unwell or too tired to work.
Hating your job
It comes as no surprise that being unhappy at work is one of the top retirement triggers. As people near the retirement age, they are more likely to feel like they don’t want to, or don’t have to, put up with a job they hate.
Many Australians feel they can’t retire while their children are financially dependent, but children leaving home is a trigger for many to cut back on work, or to retire altogether.
Inheriting or winning money unexpectedly can significantly change a person’s financial circumstances, leaving them able to retire earlier and live a better quality of life than they could have before the windfall.
Some are driven into retirement simply because they cannot find another job. This often occurs after being retrenched, or after leaving a job near retirement age. Being forced out of the workforce in this way can feel difficult, especially if it wasn’t part of the plan.
Just the right time
For some, retirement comes by choice. These people are the lucky ones for whom finances and desire to retire line up at about the same time, and they are able to exit the workforce gracefully and in a well-planned fashion.
If you need to brush up on all things retirement, download Your Rights at Retirement from the Australian Human Rights Commission website.
Do you fit into one of those categories? Were or are you prepared for retirement?