I can deal with a shortfall in retirement savings by working longer or taking up some part time work.
Recent studies have found that almost half of retirees left the workforce earlier than planned. Downsizing, layoffs and negative working conditions were some of the reasons. People ages 55 plus have an average of more than 13 months on unemployment. That’s almost 5 months longer than younger people looking for jobs. (Source: Associated Press, AARP Public Policy Institute 2012)
The biggest reasons for leaving the workforce early were health related - either the worker’s or someone in the family. Working longer is not an option you can definitely count on because staying on the job or getting another job is not a given. Almost two thirds of retired Canadians had less than a year to plan and adjust for what could be 30-40 years of retirement. (Source: LIMRA Retirement Study, 2012; Retirement Myths and Realities Poll, 2013)