Things don't always go to plan. Just look at how COVID-19 has impacted the jobs market. For anyone reading into the statistics, older employees were more greatly impacted by the pandemic.
Beyond the uncertainties of economic downturns, companies shut down all the time and job functions become redundant as technology and needs change. Individuals also cannot prevent illness or injury no matter how careful they are.
Your decision to keep working into your retirement may not always be yours to decide. An accident or retrenchment might rob you of your ability to stay employed and earn a salary at any time. Should anything happen to your family members, you may also find it necessary to take time off work to care for your loved one.
As you age, you will also find it more challenging to restart your career after losing your job or being made redundant. The pace of change in the working world is accelerating, and your skillset may be outdated if you have stayed out of the workforce for several years off to recover from, or take care of someone with, a medical condition.
To cushion against potential financial impacts of the uncertainties life will throw your way, you are typically encouraged to: