No one wants to think about the worst case scenario, but sometimes it is necessary to make sure that you are prepared for the challenges life may bring. Getting ready early can help you to be able to handle anything that life has in store for you, even a forced early retirement. You should be working proactively to prepare for that possibility, especially since it will help you even if you don’t end up needing to retire early.
Contribute the Maximum to Your 401(k)
Having a 401(k) is important, but if you aren’t contributing the maximum to it, you aren’t taking full advantage. Saving in general is good, but the money in your 401(k) is protected and treated differently by the government. That means that the money you put in your 401(k) will be taxed less heavily and it will help you to have more for your retirement. Contributing the maximum will also help your money to build up sooner so you will be able to afford the necessary things for life if you do have to retire early.
Plan for a Disability
Most people don’t think about the possibility of potentially becoming dsiabled. But even if you think it is not something in your future, it is important to plan for it anyway. About 25% of adults will become disabled at some point before retirement. That means that there is a one in four chance that you could become disabled as well. Getting disability insurance is a great place to start to protect yourself from the possibility of losing your job due to a disability.
Talk to a Financial Advisor
A financial advisor can help you to plan carefully so you can count on your finances staying stable no matter what position you find yourself in. Many people aren’t sure where to start looking for a financial advisor, but you have many options. You can search online and read reviews of financial advisors. You can also talk to friends and family members so that you know that whoever you work with is someone you can trust. Whoever you choose, make sure that you let them know about your concerns so they can help you as much as possible.
While you may not want to think about the possibility of being forced to retire prematurely, you still need to give it a little thought. That way you can plan in advance and make sure that you are still taken care of. It’s never too early to start planning for a bright future.
Check out this article on how to protect your income from unseen events!