Reasons to save money for retirement

Retirement » Reasons To Save Money For Retirement

Excuse No. 4: I'm never going to retire
Excuse No. 4: I'm never going to retire © racorn/

If you love the work you do, you might picture yourself carrying on that labor of love for the rest of your life. But are you ready for the possibility of being forced to retire due to illness, disability or a layoff? Of all the reasons to save money for retirement, preparing for unexpected events ranks near the top.

Again, the Retirement Confidence Survey, which says 7 percent of workers plan to never retire, provides a reality check. While 26 percent of workers in the survey said they plan to keep going until at least 70, only 6 percent of actual retirees stayed in the workforce that long.

Nearly half of retirees in the survey said they had to stop working earlier than planned, mostly due to health problems or disabilities (55 percent), caring for family members (23 percent), or losing a job due to downsizing or closure (20 percent).

Even if you are able to keep working well beyond the official retirement age, you'll be more secure with at least some savings set aside.

Think beyond the need to save for a "traditional retirement, in which you stop working and support yourself with the sources of income that you've saved," says Plain. "Think of it more from the standpoint of financial independence."

Attaining financial independence is perhaps the very best reason to save money for retirement.

Achieving retirement success Whether your retirement plans involve a part-time job or full-time leisure, be sure to think through the details to ensure your dreams come true.


Show Bankrate's community sharing policy

Connect with us