Managing the financial shock of early retirement: A study's insights.

• Many workers dream of retiring early, but a significant number are forced to quit due to health, career, or family issues.
• One expert warns that the consequences can be extremely severe and many people might not realize it.

Many workers dream of an early retirement.

According to new research from Transamerica Center for Retirement Studies in collaboration with Transamerica Institute, more than half of workers — 58% — retire earlier than they planned, usually due to unforeseen circumstances.

The typical age at which people stop working is 62, which is two years less than the traditional retirement age of 65.

1. The majority of Americans view this as the top indicator of success. 2. Millennials are planning to spend big during the holidays, with a sense of optimism. 3. Four significant changes to 401(k)s are set to take effect in 2025.

Early retirees cited health reasons as the primary reason for their retirement, with 46% of respondents citing this as their reason. Employment issues were the second most common reason, with 43% of early retirees citing this as their reason. Family reasons were the least common reason, with only 20% of early retirees citing this as their reason.

Just 21% said they retired early because they are financially stable.

This year, research by the Employee Benefit Research Institute revealed that half of retirees retired earlier than anticipated, with the most common reasons being beyond their control.

Lost years 'absolutely critical' for retirement security

The early retirement of retirees can have severe financial consequences, as stated by Catherine Collinson, CEO and president of Transamerica Institute and Transamerica Center for Retirement Studies.

Collinson stated that many individuals might not comprehend the gravity of the outcomes and how crucial those additional five to ten years in the workforce are in securing a comfortable retirement.

If retirees claim Social Security benefits before their full retirement age, they will receive permanently reduced benefits. The median age for claiming Social Security benefits is 64, according to EBRI. Retirees can receive the biggest Social Security benefits if they wait until age 70.

Retirees who stop working at age 62 miss out financially in other ways.

Collinson stated that they might forfeit five years of income if they planned to retire at their full retirement age of 67.

Employers may not sponsor retirement benefits, and employees may lose additional Social Security work history credits.

If they had continued working, they would have missed out on the growth of their savings and investments.

The cost of health insurance before Medicare eligibility age of 65 can be expensive, according to Collinson.

Reset financial goals after an early retirement

Collinson advised that individuals who are forced into early retirement may not have a lot of financial flexibility. However, they should create a financial plan to assess their risks of running out of money in the future.

Ted Jenkin, a certified financial planner and the CEO and founder of oXYGen Financial, advised newly retired individuals to take time to reassess their financial goals.

Jenkin, a member of the CNBC FA Council, advised that when evaluating finances, individuals should consider moving to a location with lower taxes, review the rules of COBRA or other health insurance plans, and examine any unused perks, such as credit card rewards.

Collinson advised pre-retirees who are still employed to take action now to increase their working years.

To avoid unforeseen early retirements, workers should maintain good health habits, update their job skills, and expand their professional networks, according to her.