Retirement Isn't Always Planned, Woman In Her Late 50s Forced Into Early Retirement With Only $650,000 In Savings

In a recent discussion about retirement, two common perspectives often arise among Americans: "I'm going to have to work forever" or "I have a good retirement plan in place that will allow me to retire comfortably." However, for many, there's a middle ground that can be difficult to plan for. 

Deb Hallisey, a 66-year-old New Jersey resident, faced this challenge. After losing her father in 2015, she had to pause her career to take care of her blind mother. When her billable hours continued to drop, she was let go from her job. 

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Hallisey saved diligently during her career as a consultant. As a single woman, she knew she had to provide for herself. After losing her job, she continued to take care of her mother until she died in 2022. While caring for her mother, she started writing about her caregiving experience and even launched a website sharing her stories. She also wrote two books about caregiving and turned her experience into a business, speaking about caregiving and consulting for families. 

Hallisey’s financial stability was tested despite her $600,000 in retirement savings and a $50,000 emergency fund. She draws $2,500 a month from her retirement savings and earns $500 from her business. The stock market has kept her balance at $525,000, and her home, valued at about $500,000, is mortgage-free.

This year, Hallisey plans to claim Social Security. She'll use her $3,400 monthly benefits to help with living expenses. With that, she plans to leave her retirement savings for emergencies, including future caregiving expenses that may arise for herself. 

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"I'm not making enough to support myself," Hallisey told the Wall Street Journal. "But I love it."

Hallisey's story underscores a harsh reality: many Americans expect to work until they die, but health issues or caregiving responsibilities can force early retirement. Personal finance influencer Kara from TikTok points out that Hallisey's situation, though seemingly well-prepared with $650,000, is insufficient to retire comfortably in the U.S. 

"This is what I think is so common," Kara says, "And it’s going to happen to a lot of us. A lot of people in the United States think, ‘Oh, I’ll just work until I die' … Which is really bleak in its own way, but it’s also, unfortunately, not true. You are much more likely to run into a health issue, or someone else’s health issue that prevents you from working, but continue to be alive, and that’s how you will retire." 

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Kara emphasizes the importance of planning for the possibility of early retirement due to unforeseen circumstances. It's impossible to know every little or major thing that will happen in our lives, and many retirees continue to live for decades after they retire — whether that retirement was planned or not. As people age, living expenses tend to rise with the cost of medical care and other unexpected needs. 

Experiences like Hallisey's demonstrate the importance of proactive financial planning and preparing for the unexpected. Retirement isn't always a choice, and it's critical to have a robust plan in place. Consulting a financial advisor can help tailor strategies to individual circumstances, ensuring better preparedness for uncertainties.

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