What Happens if You Don’t Retire?

Many people throughout the United States fail to save enough for retirement, while others don’t save anything at all. This typically means that most Americans won’t be able to retire. If this sounds like your situation, you’ll likely have to work right up until you die or suffer a severe medical condition. Here are a few consequences you’ll face as a result of not retiring.

Your Debt Will Multiply

Imagine you help your kids go to college or finance their wedding by putting those expenses on your credit card. That can leave you with tens of thousands in debt that you may not be able to pay off by the time you reach retirement age. It also means the money you should have beehive investing paid the minimum monthly payment on that credit card. As a result, you’ll arrive at your retirement age with mounting debt and high-interest payments instead of having the money you need to retire.

Your Loved Ones Will Be Left With Your Debt

A big part of building up a retirement nest egg involves paying off your debts to reduce your expenses in your senior years. If you don’t take that step, you may have to rely on your loved ones to help you pay off your debts when you’re forced to live on a fixed income. By saving up for your retirement throughout your life, you’ll also have the resources to pay off your debts when your estate goes into probate.

You Won’t Be Able to Pay For Your Future

Many considerations will affect you in planning for your retirement. In addition to meeting your needs for your monthly living expenses, you’ll need something extra for your medical care. Health deteriorates with age, which means you’ll need to see doctors, pay for prescriptions, and participate in therapy more than you do now. You may also need an in-home care aide, or you may need to move into an assisted living facility.

You should also consider what you’ll do if you suffer a long-term illness or injury that prevents you from continuing to work. If you haven’t saved money for your retirement, you may have to borrow to pay your monthly bills as you look for other sources of income. By planning now, you can prepare for that eventuality in your senior years.