When Retirement Comes Knocking Early: The Real Cost of Not Planning Ahead

We imagine working until 65 or so, cashing in our retirement savings, maybe taking that long-delayed trip to Tuscany or the Rockies.

But life has a funny way of interrupting our carefully penciled timelines. Whether it's a medical issue, a layoff, or a family obligation, retirement doesn't always wait for us to be ready.

And when it comes early, unplanned, and underfunded, the consequences can be steep.

As a CFO who’s spent decades analyzing financials, advising executives, and helping businesses steer through uncertain terrain, I’ve seen this movie more times than I care to admit. It’s never a feel-good rom-com. It’s a slow-burn drama, and sometimes even a horror story, especially when retirement sneaks up before the numbers have had time to add up.

The Reality: Most People Aren’t Ready

According to a 2024 report from the Transamerica Center for Retirement Studies, only 24% of U.S. workers are very confident they will be able to fully retire with a comfortable lifestyle. And 57% of retirees said they retired sooner than expected, often due to reasons beyond their control. That’s more than half.

But here’s the kicker: many of those early retirees weren’t financially prepared. The Federal Reserve's 2023 Economic Well-Being report found that 27% of non-retired adults have no retirement savings at all. Zero. Not a dime. And among those who do, the median retirement savings is only $87,000. That might sound like a decent number until you remember that people are living longer. A 65-year-old today has a 50% chance of living into their 90s. That money needs to last almost three decades in some cases.

Let that sink in.

What Happens When You Retire Without a Net

When retirement arrives unannounced, it brings baggage. Without adequate savings, people often resort to drastic measures: tapping into 401(k)s early (and paying penalties), cutting essential expenses, or relying on family. Some return to the workforce, not out of boredom, but out of necessity. I’ve had clients who once ran successful businesses or held senior leadership roles who now find themselves consulting part-time just to cover basic healthcare and housing.

And speaking of healthcare, that’s often the biggest blind spot. A 65-year-old couple retiring today can expect to spend roughly $315,000 on healthcare expenses during retirement, according to Fidelity’s latest estimate. That doesn’t include long-term care, which is a separate and often massive expense on its own.

How to Build a Plan (Even If You're Late to the Game)

Now, I didn’t write all this to scare you into panic mode. Fear isn’t a strategy. But realism? That’s where smart planning starts.

If you’re in your 40s or 50s and behind on savings, it’s not too late. Here are a few strategies I often walk through with clients:

1. Get brutally honest with your numbers

It’s not just about what you have in savings. You need a clear view of your projected expenses, inflation-adjusted needs, healthcare costs, and potential income sources. Run the scenarios. Yes, even the uncomfortable ones. Especially those.

2. Max out retirement contributions

If you’re over 50, take advantage of catch-up contributions. In 2025, you can contribute up to $30,500 to a 401(k), including catch-ups. An IRA allows up to $8,000. If your employer matches, even better. That’s free money. Don’t leave it on the table.

3. Diversify income sources

Social Security is a piece of the puzzle, not the full picture. Think about rental income, part-time work you’d actually enjoy, annuities, or downsizing your home. The more diversified your income, the more resilient your retirement.

4. Stress-test your retirement

I always recommend running through different scenarios: What if you retire at 60 instead of 65? What if the market tanks early in your retirement? Planning for the worst doesn’t make you negative. It makes you smart.

5. Work with professionals, not just algorithms

Online calculators are a decent start, but retirement planning deserves more nuance. A financial advisor, a tax expert, and yes, even a CFO mindset can help you see around corners. It’s not about predicting the future. It’s about preparing for multiple futures.

Final Thoughts: It’s Not Just About Money

Here’s something people don’t talk about enough: retirement isn’t just a financial shift. It’s a psychological one. When it’s unplanned, it can feel like losing a piece of your identity. That’s why planning ahead isn’t just about numbers. It’s about control. It’s about dignity. It’s about ensuring that when that chapter begins, it’s on your terms.

If you’re feeling behind, don’t beat yourself up. But don’t sit still either. Start where you are. Build from there. You don’t need a perfect plan. You just need a better one than yesterday.

At Procuris, we work with organizations and individuals who are trying to navigate financial complexity with clarity. Whether you’re a business owner planning your exit or a professional rethinking your retirement timeline, we’re here to help you design a strategy that’s grounded, flexible, and tailored to real life.

Because real life rarely goes according to plan. But with the right tools, you can be ready anyway.