Here's Why Planning Not to Retire Could Come Back to Bite You

These days, saving enough for a comfortable retirement can be difficult. Expenses keep rising, and some seniors have to stretch their savings out over 30 years or more. That’s a tall order, especially if you’re struggling to make regular retirement account contributions.

In light of all this, you might decide to give up on retirement altogether. This could solve your problems in theory, but in practice, it’s more challenging than you might expect.

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Why it’s difficult to never retire

While you might sincerely want to work for the rest of your life, many people find themselves forced into an unexpected retirement. For example, you might develop a serious illness that leaves you unable to work or have to care for a family member who is no longer able to care for themselves.

Job changes can also make it difficult to remain employed. Some older adults find it more difficult to get hired elsewhere after losing their jobs. If you work a physically demanding job, you may find that it’s too difficult to maintain as you age.

This doesn’t mean it’s impossible to pivot, though. Perhaps you can transition to a less physically taxing job or find a remote job you can do while staying home to care for a sick family member. It’s difficult to know whether this will be an option for you.

Save what you can, anyway

You may not intend to retire, but it’s worth setting aside some money as a safety net in tax-advantaged accounts, just in case you’re forced into retirement. If you don’t need the funds, you can always pass them on to your heirs.

A good place to start is by claiming your 401(k) match if you’re eligible for one. This is basically free money that can help you reach your savings goals a lot more quickly than if you were going it alone.

Beyond that, set aside money as you’re able to. Ideally, you’d save a set amount each month or pay period, but this isn’t feasible for everyone. If you can’t make regular contributions, do what you can. Maybe that’s saving your tax refund annually or setting aside $20 every few pay periods.

Your small contributions might not seem like much now, but they can grow into thousands or tens of thousands of dollars, especially if they’re invested for decades. They might just be a lifesaver if the unexpected happens.