A new survey from the Employee Benefit Research Institute reveals a stark reality: nearly half of people who retired in 2025 stopped working earlier than planned. For three decades, that number has held steady between 40% and 50%.
More troubling: 76% of those early retirements were involuntary, driven by health issues, layoffs, or family care needs. An Urban Institute paper found 56% of full-time workers in their early 50s get pushed out before they're ready.
Here are seven moves to protect yourself.
1. Build a Bridge Fund. If forced to retire in your late 50s or early 60s, avoid tapping Social Security or your 401(k) immediately. Aim for two to four years of living expenses in cash or savings outside retirement accounts.
2. Max Out Catch-Up Contributions. In 2026, workers 50+ can add $8,000 to their 401(k) and $1,100 to an IRA. For those turning 60-63, a "super catch-up" allowance of $11,250 is available.
3. Lock in Long-Term Care Insurance. The window closes fast. Mid-50s to early 60s offers the best premiums and approval odds. This insurance protects savings from the catastrophic cost of full-time care.
4. Solve the Health Insurance Gap. Medicare doesn't start until 65. If forced to retire earlier, ACA plans can cost $800-$1,200 a month. Max out an HSA now and understand how subsidies work.
5. Delay Social Security. Starting at 62 locks in a permanent 30% reduction. Waiting until 70 yields a check 75% larger. Use your bridge fund to buy that waiting period.
6. Diversify Your Buckets. Relying solely on a pre-tax 401(k) creates tax and penalty traps. A mix of pre-tax 401(k), Roth IRA, and taxable brokerage gives more flexibility.
7. Build a Side Income Now. The "work longer" plan failed for nearly half of retirees. Create consulting or freelance income streams before you need them.
The bottom line: Retirement often happens to you, not for you. Plan for the retirement you might be forced into, not just the one you want.