The Pandemic Prompted Early Retirement for Many

You might already be aware that the pandemic prompted something called the Great Resignation. Millions of American workers packed up and bid farewell to their employers in response to numerous changes that occurred over the past year and a half. But did you realize that many of those resigned workers actually opted for early retirement? How, and why, did they do that?

Just like everyone else, workers in their fifties and sixties grew increasingly frustrated over the course of the pandemic, due to factors such as remote work, the end of remote work, feeling undervalued by employers, and fear of the pandemic itself. And some simply enjoyed a preview of what retirement might be like, when we shut down the economy for several weeks, and realized they were ready to make the lifestyle permanent.

But how did so many workers opt for early retirement? Possibly a combination of the following factors helped to get some started with some financial security:

• Large gains in the market
• Rapidly rising home values
• Federal stimulus money
• Extended unemployment benefits

Those factors might have allowed some workers to stop working, while still managing to keep their bills covered. In fact, while the number of new retirees has risen over the past year or so, Social Security actually reported a decline in the number of new claims! That means many of these early retirees did not claim their retirement benefits yet, or were perhaps even too young to do so (under age 62).

Or, perhaps some early retirees are not yet sure of their decision. Maybe they’re considering a re-entry to the workforce at some point. It’s also possible that some have delayed their Social Security claim because they realize that waiting a few years can result in larger checks.

We’ll have to wait and see how this issue plays out in the long term. Meanwhile, if you’re considering an early retirement due to the pandemic or any other reason, give us a call. We can help you evaluate your situation and decide whether you’re ready to retire.